Casey’s General Stores has reported strong growth in its first-quarter earnings amid higher sales from both fuel and in-store merchandise.

The convenience store chain reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of $215.4 million for the quarter ended July 31, up 19.8 per cent year-on-year. Net income for the period rose from $180 million to $215 million.

Total inside (non-fuel) sales for the quarter increased 14.2 per cent, with same-store non-fuel sales up 4.3 per cent thanks to strong performance in the prepared food and dispensed beverage category. 

Inside margin was up approximately 20 basis points compared to the same quarter a year ago, benefiting from a favorable product mix shift.

Total fuel gallons sold increased 18 per cent, driven by a higher store count and a 1.7 per cent growth in same-store gallons.

The chain operated over 200 more stores than the prior-year period, ending the quarter with 2895 locations.

CEO Darren Rebelez said the company achieved an “excellent” set of results during the quarter thanks to strong performance both inside and outside the store.

“Our inside same-store sales were driven by positive traffic growth due to our summer merchandising plan as well as our team’s outstanding execution, demonstrating our ability to serve our guests efficiently at a high level. 

“Our fuel team did a tremendous job achieving same-store gallon growth while maintaining a healthy fuel margin,” he added.

For the full year, Casey’s expects EBITDA to increase 10-12 per cent, inside same-store sales to increase 2-5 per cent, and same-store fuel gallons sold to be about the same, allowing for 1 per cent either way.

The company reported an 8.9 per cent uplift in sales and 13.3 per cent growth in EBITDA last year.