Friday, April 18th10.4°C
21450
21135

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

17772


Recent Trending




Today's Market
S&P TSX14500.39+53.87
S&P CDNX998.770.80
DJIA16408.54-16.31
Nasdaq4095.516+9.291
S&P 5001864.85+2.54
CDN Dollar0.9072-0.0012
Gold1293.80-9.2999
Oil104.59+0.83
Lumber326.10-2.70
Natural Gas4.735+0.205

 
Okanagan Companies
Pacific Safety0.115+0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.29+0.07
Cantex0.055+0.01
Anavex Life Sciences0.3750.00
Metalex Ventures0.08+0.005
Russel Metals30.66+0.11
Copper Mountain Mining2.35-0.07
Colorado Resources0.255-0.01
ReliaBrand Inc0.12-0.01
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.25+0.02

 
19691


21115

FEATURED Property
18224713381 Ridge Boulevard, West Kelowna, BC
4 bedrooms 5 baths
$799,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Learning to flirt with the edge

With all of the adventure activities I have done and still do, I wonder sometimes if the edge still exists. The systematic approach to learning a new adventure or extreme activity combined with the r...


Time spent prospecting

How much time should you put into prospecting? The question is a bit of a puzzle. Ideally, there would be a reference book that lists, by industry, how much time you should invest in prospecting acti...


Valuation fears grip markets

The Big Picture Valuation fears grip markets Growing concerns about the level of stock market valuations sparked a risk-off trade in global markets this week. Investors are worried that many companies...

_



21368

21604


Member of BC Press Council


21188