Shoppers Drug Mart reports lower quarterly net income

Composite image of the exteriors of a Shoppers Drug Mart and Loblaws store. (Reuters)

Composite image of the exteriors of a Shoppers Drug Mart and Loblaws store. (Reuters)

Reuters

, Last Updated: 4:34 PM ET

Shoppers Drug Mart Corp, Canada's largest pharmacy chain, on Tuesday reported slightly lower quarterly net income due in part to charges from its pending acquisition by Loblaw Co Ltd.

The company said third-quarter net income fell to $165.8 million, or $0.83 per share, from $167.7 million, or $0.81 cents per share, a year earlier, when there was more outstanding stock.

Excluding special items, earnings per share were $0.88 cents, up from $0.85 Canadian cents a year earlier.

Analysts on average expected earnings of $0.81 cents per share, according to Thomson Reuters I/B/E/S.

Sales rose 2.4% to $3.29 billion, meeting analysts' estimates. Sales at established stores, a key measure for retailers, were 2.2% higher.

But the average prescription value declined a further 2.7% during the quarter. Pharmacies have been hit by ongoing regulation changes in Canada that put a cap on generic drug prices.

Results also included $14 million in costs from the Loblaw deal.

In September, shareholders voted overwhelmingly in favor of the $12.4 billion sale to Canada's largest food retailer. The transaction will probably be finalized before the end of the first quarter after Canadian competition regulators give their approval.


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