Shoppers Drug Mart Corporation announces strong results

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[{"type":"text","content":"\n\n\n\n- FOURTH QUARTER NET EARNINGS INCREASE 14.4%\n- FULL YEAR NET EARNINGS INCREASE 15.2%\n\n\nTORONTO, Feb. 12 /CNW/ - Shoppers Drug Mart Corporation (TSX: SC) today\nannounced its unaudited financial results for the fourth quarter and fiscal\nyear ended January 3, 2009.\n\n\nFourth Quarter Results (13 Weeks Compared to 12 Weeks in Fiscal 2007)\n\n\nFourth quarter sales increased 15.1% to $2.497 billion, with the Company\nonce again experiencing strong sales growth in all regions of the country. The\nCompany's capital investment program, which resulted in an 11.6% increase in\nselling space compared to a year ago, together with the benefit of an\nadditional week in fiscal 2008, drove this top-line growth. On a same-store\n(13 week) basis and excluding tobacco products, sales increased 3.6% during\nthe fourth quarter of 2008.\n\n\nPrescription sales increased 18.3% in the fourth quarter to $1.154\nbillion, accounting for 46.2% of the Company's sales mix compared to 45.0% in\nthe same period last year. On a same-store (13 week) basis, prescription sales\nincreased 5.0% during the fourth quarter of 2008, driven by strong growth in\nthe number of prescriptions filled, while increased generic utilization\ncontinued to have a deflationary impact on sales growth in the category. In\nthe fourth quarter of 2008, generic molecules represented 52.2% of\nprescriptions dispensed compared to 48.9% of units dispensed in the fourth\nquarter of 2007.\n\n\nFront store sales increased 12.5% to $1.343 billion in the fourth\nquarter, with the Company continuing to experience sales and market share\ngains in all categories except tobacco, which is being phased out of its\nremaining stores in Western Canada that list these products. On a same-store\n(13 week) basis and excluding tobacco products, front store sales increased\n2.4% during the fourth quarter of 2008. The incremental selling space stemming\nfrom the Company's store network growth and revitalization program, combined\nwith effective merchandising and the continued maturation of the sales mix in\nthese stores, drove continued growth in front store sales. Sales growth in the\nfourth quarter was also driven by stepped-up investments in promotional\npricing in response to softer market conditions, inclement weather and\nincreased promotional efforts on the part of other retailers.\n\n\nFo...

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