Business
Shoppers Drug Mart Corporation announces strong second quarter results - Sales increase 9.4% and net earnings increase 14.4%
TORONTO, July 16 /CNW/ - Shoppers Drug Mart Corporation (TSX: SC) today announced its financial r...
About this update from Serrano Resources Ltd.
[{"type":"text","content":"\n\n\n\nTORONTO, July 16 /CNW/ - Shoppers Drug Mart Corporation (TSX: SC) today\nannounced its financial results for the second quarter ended June 14, 2008.\n\n\nSecond Quarter Results (12 Weeks)\n\n\nSecond quarter sales increased 9.4% to $2.109 billion, with the Company\ncontinuing to experience strong sales growth in all regions of the country. On\na same-store basis, excluding tobacco products, sales increased 4.6% during\nthe quarter.\n\n\nPrescription sales increased 11.6% in the second quarter to $1.010\nbillion, accounting for 47.9% of the Company's sales mix compared to 46.9% in\nthe same period last year. On a same-store basis, prescription sales increased\n6.4%. Comparable store prescription sales growth was driven by strong growth\nin the number of prescriptions filled, as increased generic prescription\nutilization continues to have a deflationary impact on sales dollar growth in\nthe category.\n\n\nFront store sales increased 7.4% in the second quarter to $1.099 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 and excluding tobacco, front\nstore sales increased 3.0%, a particularly strong result given the Easter\ncalendar shift this year which benefited comparable front store sales in the\nfirst quarter of 2008 by approximately 200 basis points.\n\n\nSecond quarter net earnings increased 14.4% to $128 million or 59 cents\nper share (diluted) from $112 million or 52 cents per share (diluted) a year\nago. Solid top line growth and a strong sales mix, combined with improved\npurchasing synergies and an ongoing commitment to cost reduction and\nefficiency, continued to drive growth in net earnings. Net earnings growth was\nalso aided by a reduction in the Company's effective income tax rate, driven\nby a lower statutory rate, partially offset by increased interest expense.\n\n\nCommenting on the results, Jurgen Schreiber, President and CEO stated,\n"We are pleased with our second quarter and first half results. Our\nperformance thus far in fiscal 2008 reflects the successful implementation of\na number of new initiatives, combined with solid execution at store-level\nthanks to the dedication and commitment of our Associate-owners and their\nteams. We...