Jean Coutu sales up but profit weakened by generic prices, higher expenses

Jean Coutu sales up but profit weakened by generic prices, higher expenses

VARENNES, Que. — Jean Coutu Group (TSX:PJC.A) says its store sales and revenue were up in the final quarter of its 2017 financial year but its profit declined due to weak generic drug prices and costs associated with setting up a new head office.

The Quebec-based pharmacy company had $47.8 million or 26 cents per share of net income in its fourth quarter, ended March 4 — down seven per cent from the comparable period last year.

The decline was attributed to a lower contribution from the Pro Doc generic drug subsidiary and higher expenses related to the Jean Coutu’s transition to the new head office in Varennes, Que., near Montreal.

Revenue for the fourth quarter was up 11.7 per cent at $789 million, including an extra 14th week due to the timing of the company’s year end on March 4.

Same-store sales grew by 4.0 per cent overall, although pharmacy sales grew less than front-of-store sales.

CEO Francois Coutu says the company expects to continue its revenue growth despite a highly competitive environment, and the company’s board of directors says the quarterly dividend will be increased by 8.3 per cent to 13 cents per share.

The Canadian Press

Categories: Business

About Author

Write a Comment

Only registered users can comment.