Business
Shoppers Drug Mart Corporation announces strong first quarter results
Shoppers Drug Mart Corporation announces strong first quarter results.
About this update from Serrano Resources Ltd.
[{"type":"text","content":"\n\n\n\nTORONTO, April 30 /CNW/ - Shoppers Drug Mart Corporation (TSX: SC) today\nannounced its financial results for the first quarter ended March 24, 2007.\n\n\nFirst Quarter Results (12 Weeks)\n\n\nFirst quarter sales increased 10.0% to $1.839 billion, with strong sales\ngrowth experienced in all regions of the country. On a same-store basis, sales\nincreased 6.4% during the quarter.\n\n\nPrescription sales increased 10.3% in the first quarter to $894 million,\naccounting for 48.6% of the Company's sales mix compared to 48.5% in the same\nperiod last year. On a same-store basis, prescription sales increased 7.0%,\nwith increased generic prescription utilization continuing to temper the\ninflationary impact on prescription sales growth.\n\n\nFront store sales increased 9.8% in the first quarter to $945 million,\nwith the Company continuing to experience sales gains in all categories. On a\nsame-store basis, front store sales increased 5.8%.\n\n\nSolid top line growth, an enhanced sales mix and an ongoing commitment to\ncost reduction, productivity and efficiency, partially offset by higher\noperating costs and increased amortization in new and relocated stores,\nresulted in growth in operating income and net earnings. First quarter net\nearnings increased 18.7% to $85 million or 39 cents per share (diluted) from\n$72 million or 33 cents per share (diluted) a year ago. Net earnings growth\nwas also aided by a modest reduction in interest expense versus the\ncomparative prior year period.\n\n\nCommenting on the quarter, Jurgen Schreiber, President and CEO stated,\n"We are pleased with our first quarter results, which saw us build upon the\nmomentum we had coming out of last year. Thanks in large part to the efforts\nof our Associate-owners and their teams, fiscal 2007 is off to a good start\nand we are in position to deliver another year of strong growth in sales and\nprofitability."\n\n\nStore Network Development\n\n\nDuring the first quarter, 13 drug stores were opened or acquired, seven\nof which were relocations, and two drug stores were closed. The Company also\nadded one home health care store to its network during the quarter. At\nquarter-end, there were 1,050 stores in the system, comprised of 991 drug\nstores and 59 Shoppers Home Health Care stores.\n\n\nDividend\n\n\nThe Company also announced today that its ...