Business
Shoppers Drug Mart Corporation Announces Strong First Quarter Results
- CONTINUED GROWTH IN SALES AND NET EARNINGS TORONTO, April 28 /CNW/ - Shoppers Drug Mart Corpora...
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[{"type":"text","content":"\n\n\n\n- CONTINUED GROWTH IN SALES AND NET EARNINGS\n\n\nTORONTO, April 28 /CNW/ - Shoppers Drug Mart Corporation (TSX: SC) today\nannounced its financial results for the first quarter ended March 28, 2009.\n\n\nFirst Quarter Results (12 Weeks)\n\n\nFirst quarter sales increased 8.5% to $2.195 billion, with the Company\ncontinuing to experience strong sales growth in all regions of the country. On\na same-store basis and excluding tobacco products, sales increased 4.0% during\nthe quarter.\n\n\nPrescription sales increased 11.7% in the first quarter to $1.086\nbillion, accounting for 49.5% of the Company's sales mix compared to 48.0% in\nthe same period last year. On a same-store basis, prescription sales increased\n5.9%, driven by strong growth in the number of prescriptions filled, while\nincreased generic utilization continued to have a deflationary impact on sales\ngrowth in the category. In the first quarter of 2009, generic molecules\nrepresented 52.8% of prescriptions dispensed compared to 50.2% of\nprescriptions dispensed in the first quarter of 2008.\n\n\nFront store sales increased 5.5% in the first quarter to $1.109 billion,\nwith the Company continuing to experience sales and market share gains in all\ncategories except tobacco. On a same-store basis and excluding tobacco\nproducts, front store sales increased 2.1%. The Company estimates that the\nshift in the Easter selling season to the second quarter of this year from the\nfirst quarter last year had a negative impact on comparable front store sales\ngrowth of approximately 150 basis points.\n\n\nFirst quarter net earnings increased 6.1% to $107 million or 49 cents per\nshare (diluted) from $101 million or 46 cents per share (diluted) a year ago.\nStrong top line growth, an enhanced sales mix and a continued emphasis on cost\nreduction, productivity and efficiency, partially offset by higher operating\nexpenses at store-level and increased amortization associated with the\ncontinued expansion of the store network, as well as stepped-up investments in\nmarketing and promotional activities, resulted in growth in operating income\nand net earnings.\n\n\nCommenting on the quarter, Jurgen Schreiber, President and CEO stated,\n"We are pleased with our first quarter results, particularly in the context of\nthese challenging economic times. Against this backdrop we ...