Shoppers Drug Mart Corporation announces strong first quarter with sales up 10.1% and earnings up 18.8%

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[{"type":"text","content":"\n\n\n\nTORONTO, April 29 /CNW/ - Shoppers Drug Mart Corporation (TSX: SC) today\nannounced its financial results for the first quarter ended March 22, 2008.\n\n\nFirst Quarter Results (12 Weeks)\n\n\nFirst quarter sales increased 10.1% to $2.024 billion, with the Company\ncontinuing to experience strong sales growth in all regions of the country. On\na same-store basis, sales increased 6.0% during the quarter.\n\n\nPrescription sales increased 8.8% in the first quarter to $972 million,\naccounting for 48.0% of the Company's sales mix compared to 48.6% in the same\nperiod last year. On a same-store basis, prescription sales increased 5.0%,\nwith increased generic prescription utilization continuing to have a\ndeflationary impact on sales growth in the category.\n\n\nFront store sales increased 11.3% in the first quarter to $1.052 billion,\nwith the Company continuing to experience sales gains in all categories except\ntobacco, which is being phased out of its remaining stores in Western Canada\nthat list these products. On a same-store basis, front store sales increased\n7.0%, or 7.4% excluding tobacco, with sales growth benefiting from an earlier\nEaster this year compared to last year.\n\n\nFirst quarter net earnings increased 18.8% to $101 million or 47 cents\nper share (diluted) from $85 million or 39 cents per share (diluted) a year\nago. Once again, solid top line growth, an enhanced sales mix and an ongoing\ncommitment to cost reduction, productivity and efficiency, partially offset by\nhigher operating costs and increased amortization in new and relocated stores,\nresulted in growth in operating income and net earnings. Net earnings growth\nwas also aided by a reduction in the Company's effective income tax rate,\ndriven by a lower statutory rate, partially offset by increased interest\nexpense.\n\n\nCommenting on the quarter, Jurgen Schreiber, President and CEO stated,\n"We are pleased with our first quarter results. Fiscal 2008 is off to a very\ngood start. Together with our Associate-owners and their teams, we remain\nconfident in our outlook for the rest of the year and are excited about the\nmany programs and initiatives that lie ahead."\n\n\nStore Network Development\n\n\nDuring the first quarter, 51 drug stores were opened or acquired, eight\nof which were relocations, and five smaller drug stores were c...

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