Shoppers Drug Mart sees growth in Q1

TORONTO One of Canada's largest drug store chains reported a 5.7% increase in its first-quarter sales.

First-quarter sales increased to C $2.32 billion ($2.31 billion), compared with the same period last year. Shoppers also saw a 3.1% rise in same-store sales, and a 5.1% spike in front-end sales, totaling nearly C $1.17 billion ($1.16 billion).

Meanwhile, first-quarter net earnings rose 8.2% to $116 million or 53 cents per share (diluted) from $107 million or 49 cents per share (diluted) a year ago. Shoppers said this result was driven by top line growth, improved purchasing synergies and a continued emphasis on cost reduction, productivity and efficiency.

Commenting on the quarter, Jurgen Schreiber, president and CEO stated, “We are pleased with our first quarter results, especially in light of the fact that we experienced a weaker cough, cold and flu season compared to a year ago.  In these challenging times for community pharmacy, particularly in the Province of Ontario, I am extremely proud of our Associate-owners and their teams as they work through this difficult period without ever losing sight of what matters most – the health and well-being of our valued patients and customers.”

During the quarter, 27 drug stores were opened or acquired, 11 of which were relocations, and one smaller drug store was closed. At quarter-end, Shoppers Drug Mart owned 1,303 stores, comprised of 1,234 drug stores (1,183 Shoppers Drug Mart/Pharmaprix stores and 51 Shoppers Simply Pharmacy/Pharmaprix Simplement Sante stores), 63 Shoppers Home Health Care stores and six Murale stores.