EL DORADO, Ark. — Retailer Murphy USA Inc. saw total retail fuel gallons increase 11.4% and net income grow $37 million to $104 million in third quarter 2021 compared to the same period a year earlier, driving an earnings period that President and CEO Andrew Clyde described as an “exceptional third quarter.”
“Despite continued supply-chain constraints and operational hurdles, Murphy USA’s exceptional third-quarter performance demonstrates our ability to compete and win in a challenging environment,” Clyde said. “We grew both fuel volumes and margins vs. the prior year, expanded same-store merchandise contribution and introduced targeted investments in labor to support our employees and help maintain our high standards of customer service.”
During the quarter ended Sept. 30, Murphy USA saw net income reach $104 million, “primarily due to higher all-in fuel contribution, higher merchandise margin contribution and lower general and administrative expense, partially offset by higher store operating expenses and higher payment fees,” the company said.
Meanwhile, total retail gallons increased 11.4% compared to third quarter 2020, while volumes on a same-store-sales basis increased 1.9%. Retail fuel margins in the period were 24 cents per gallon. “Consequently, total retail fuel contribution dollars of $264.4 million increased 40.9% compared to the prior-year quarter, supported by both higher retail fuel margins and volumes,” the company said.
Other highlights include:
- Merchandise contribution dollars increased 58.6% to $187.3 million compared to the prior-year quarter, on average unit margins of 19.6% in the current quarter, primarily attributable to Murphy USA’s acquisition of the QuickChek convenience-store chain in January.
- Food and beverage contribution margin increased significantly to 14.8% of total merchandise contribution dollars in Q3 2021 compared to 0.9% in the prior year period due to the inclusion of QuickChek in the current period.
- During Q3 2021, the company opened four new Murphy Express stores and three QuickChek stores. There are 16 new Murphy Express sites, three new QuickChek sites and 12 raze-and-rebuild Murphy USA sites currently under construction.
“Our outlook for the business remains robust, and we expect to generate strong free cash, which will enable continued organic growth and shareholder distributions,” Clyde said.
- Murphy USA is No. 6 in CSP’s 2021 Top 202 ranking of c-store chains by size. QuickChek was No. 46.
El Dorado, Ark.-based Murphy USA has more than 1,650 gas stations in 27 states primarily in the Southwest, Southeast, Midwest and Northeast. Most of Murphy USA's sites are located adjacent to Walmart stores. The company also markets gasoline and other products at standalone convenience stores under the Murphy Express and QuickChek brands.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.