Friday, July 31st30.1°C
26622
26827

Shoppers says underwhelming cold season, winter storms hit fourth-quarter profit

TORONTO - Fewer colds and nasty winter storms left Shoppers Drug Mart Corp. (TSX:SC) with lower profits in the fourth quarter.

The pharmacy chain said Thursday it was forced to close 112 locations for as long as two days in late December when severe winter weather slammed Central Canada, causing massive power outages.

The fallout contributed to lower profits of $169.4 million, or 85 cents per share, for the quarter ended Dec. 28. That compared with profits of $175 million, or 85 cents per share, in the same period a year ago.

Also factoring into the results were $3 million of expenses from the pending a takeover by Loblaw (TSX:L) valued at $12.4-billion.

Excluding those costs, Shoppers said it earned $172 million or 86 cents per share, falling in line with analyst expectations, according to Thomson Reuters.

Revenue totalled $2.75 billion, up from $2.72 billion a year earlier, while its same-store sales were up 1.2 per cent.

"By any measure, our performance in the fourth quarter of 2013 was a successful conclusion to what was a very successful year," president and CEO Domenic Pilla told analysts during a conference call.

"However, (it) remains a very competitive and challenging marketplace."

Shoppers and other retailers have faced increased competition as Target Corp. rolls out its Canadian expansion — one of the factors underlying Loblaw's expansion in the pharmacy sector.

Consumers expect lower prices as they look to the number of alternatives in the retail market.

"Our percentage of sales on promotion products continues to increase as a percentage of total sales," Pilla said.

Pharmacy sales, which have been pressured by a lower value of prescriptions, increased 0.5 per cent on a same-store basis.

Non-prescription sales, referred to as front store sales, were up 1.1 per cent.

However, Pilla said the early cough and cold season fell short of last year, which meant fewer people bought over-the-counter remedies.

The Loblaw takeover of Shoppers Drug Mart still requires approval from the Competition Bureau, expected early this year.

Shoppers shares closed three cents higher at $58.07 Thursday on the Toronto Stock Exchange.

The Canadian Press


Read more Business News

25528


Recent Trending




Today's Market
S&P TSX14468.44+85.68
S&P CDNX594.31+6.01
DJIA17689.86-56.12
Nasdaq5128.28-0.50
S&P 5002103.84-4.79
CDN Dollar0.7640-0.0052
Gold1096.90+0.60
Oil47.22-1.69
Lumber252.30+0.50
Natural Gas2.883+0.062

 
Okanagan Companies
Pacific Safety0.17-0.01
Knighthawk0.010.00
QHR Technologies Inc1.42+0.00
Cantex0.035-0.005
Anavex Life Sciences0.9101+0.1101
Metalex Ventures0.05+0.00
Russel Metals19.40-0.05
Copper Mountain Mining0.79+0.01
Colorado Resources0.065+0.005
ReliaBrand Inc0.0049+0.0004
Sunrise Resources Ltd0.03+0.00
Mission Ready Services0.095-0.045
Decisive Dividend Corp2.55+0.05

 



26959

FEATURED Property
20091861649 Cary Road
$2,290,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Chasing ducks

Photo: Thinkstock.comWhen businessmen tell me that being low priced is the only way to stay in business, I am skeptical. Price is the simplest way for a consumer to compare and is overused as the basi...


Taking care of business

Photo: Thinkstock.comRetirement as a goal has changed a lot over the years. There was a time, it was the only goal. You’d punch the clock and count the years until you could stop punching that t...


Income from home equity

Photo: Thinkstock.comWhen retirement funds run low, seniors often ask if tapping into the equity in their home is the right way to retain financial independence. To see if this option might be a good ...

_





26586


Member of BC Press Council


26788