Business
Shoppers Drug Mart Corporation announces first quarter results
Shoppers Drug Mart Corporation announces first quarter results
About this update from Serrano Resources Ltd.
[{"type":"text","content":"\n\n\n\nTORONTO, Apr. 28, 2010 (Canada NewsWire Group) -- /CNW/ -- Shoppers Drug Mart Corporation (TSX: SC) today announced its financial results for the first quarter ended March 27, 2010.First Quarter Results (12 Weeks)First quarter sales increased 5.7% to $2.321 billion, with the Company continuing to experience sales growth in all regions of the country, led by gains in Québec and Western Canada. On a same-store basis, sales increased 3.1% during the quarter.Prescription sales increased 6.3% in the first quarter to $1.155 billion, accounting for 49.8% of the Company's sales mix compared to 49.5% in the same period last year. On a same-store basis, prescription sales increased 4.1%. Prescription sales growth continues to be driven primarily by strong growth in the number of prescriptions filled, while increased generic utilization continues to have a deflationary impact on sales growth in the category. In the first quarter of 2010, generic molecules represented 54.2% of prescriptions dispensed compared to 52.8% of prescriptions dispensed in the first quarter of 2009.Front store sales increased 5.1% in the first quarter to $1.166 billion, with the Company continuing to experience sales gains in its core categories. On a same-store basis, front store sales increased 2.1%.First quarter net earnings increased 8.2% to $116 million or 53 cents per share (diluted) from $107 million or 49 cents per share (diluted) a year ago. This result was driven by top line growth, improved purchasing synergies and a continued emphasis on cost reduction, productivity and efficiency, the benefits of which were partially offset by higher operating expenses at store-level associated with the Company's network growth and expansion initiatives, including increased amortization, and continued investments in pricing and promotional activities. Net earnings growth was also aided by lower interest expense and by a reduction in the Company's effective income tax rate.Commenting on the quarter, Jürgen Schreiber, President and CEO stated, \"We are pleased with our first quarter results, especially in light of the fact that we experienced a weaker cough, cold and flu season compared to a year ago. In these challenging times for community pharmacy, particularly in the Province of Ontario, I am extremely proud of our Associate-owners and their teams as...