US: Lower fuel margins hit c-store retailer Casey’s

Lower margins from gas sales have hit half-year profits at US c-store retailer Casey’s General Stores.

Net income fell 6.7% to US$71.9m for the six months to the end of October despite higher sales.

Casey’s pointed to lower margins from fuel sales compared to a year ago when gas margins were at an “all-time high”.

Competition and a tax increase in Illinois has hit cigarette sales and depressed sales form Casey’s grocery and other merchandise business. 

However, second-quarter same-store sales of prepared food and fountain increased 10.1%. That said, Casey’s is targeting an increase of 11% in its current financial year

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