Shoppers Drug Mart sees sales growth in Q3

TORONTO Canada-based Shoppers Drug Mart saw net earnings increase 6.6% to $157.92 million, driven by strong sales growth, improved purchasing synergies and a continued emphasis on cost reduction, productivity and efficiency, the company said Wednesday.

The retailer said it continued to experience strong sales growth in all regions of Canada. Excluding tobacco products, same-store sales increased 4.8%. During the quarter, prescription sales rose 9.7% to $1.37 billion, accounting for 49.1% of the company's sales mix. On a same-store basis, prescription sales were up 5.8%, driven by strong growth in the number of prescriptions filled, while increased generic use continued to have a deflationary impact on sales growth in the category.

Front-store sales meanwhile rose 6.2% to $1.41 billion. Excluding tobacco products, front store same-store sales increased 3.9%.

Jurgen Schreiber, president and CEO stated, "We are pleased with our third quarter results and our performance thus far in 2009, as we continue to deliver growth in these challenging economic times. The strength of our pharmacy programmes and services, combined with effective front store merchandising and marketing initiatives, have us well-positioned heading into the holiday season and the final weeks of 2009."