Shoppers Drug Mart’s earnings rise across the board

TORONTO — Shoppers Drug Mart earned net income of $201 million Canadian for its fourth quarter ended Dec. 31. This compares to net income of $128C million during the same period in 2015. Adjusted net earnings were $393C million, compared to $363C million in the prior year.

Looking at other quarterly earnings, all presented in Canadian dollars throughout the remainder of the story, the retailer posted revenues of $10.845 billion in its most recent quarter, versus $10.6 billon in the year-ago period.

Drug retail same-store sales enjoyed a 3.4% increase in Shoppers Drug Mart’s fourth quarter, compared to an advancement of 5% in the prior year period. Broken down, pharmacy same-store sales growth increased 2.5%, while front-end same-store sales growth improved by 4.1%.

Food retail same-store sales growth rose by 1.1%, compared to a 2.4% advancement in 2015’s fourth quarter.

For all of 2016, Shoppers Drug Mart earned $1.9 billion in operating income for its fiscal year ended Dec. 31, compared to $1.429 billion during 2015.

Adjusted gross profit rose from $11.747 billion to $12.262 billion in 2016. Adjusted gross profit percentage increase from 26.4% to 27%.

Adjusted EBITDA also increased from $3.352 billion in 2015 to $3.631 billion in 2016. Adjusted EBITDA margins rose from 7.5% to 8%.

Looking specifically at Shoppers Drug Mart’s drug retail division last year, same-store sales growth rose 4% for the period ended Dec. 31. That compares to an increase of 4.3% in the prior year.

Food retail same-store sales growth increased 1.1% during Shoppers Drug Mart’s most recent year, compared to 1.9% the prior year.

Shoppers Drug Mart is a division of Loblaw Companies Ltd.