LONGUEIL, Quebec — The Jean Coutu Group posted a boost in third-quarter net profits as revenues decreased largely because of the growth in generic drug prescriptions.
“The results of the third quarter of fiscal 2014 highlight the performance of our organization since the operating income and the profit per share recorded a significant increase in spite of a growing competitive environment and a restrictive regulatory context,” said Francois Coutu, president and CEO. “Our priority over the coming months will be to continue the implementation of dynamic strategic initiatives that will contribute to increase sales, pursue our growth and maintain our leadership.”
During the quarter ended Nov. 30, operating income before amortization rose 3.4%, despite the deflationary impact on pharmacy sales of a strong generic drugs penetration.
Net profit totaled Canadian $62.5 million, or 30 Canadian cents per share, compared with C$56.2 million, or 26 Canadian cents per share, in the year-ago period.
Revenues totaled C$712.5 million compared with C$716.6 million. The company attributed the decrease to the deflationary impact on revenues of the significant volume increase in prescriptions of generic drugs as well as the price reductions of generic drugs.
On a same-store basis, the company’s retail sales slipped 1.3%. Pharmacy same-store sales decreased 1.6% as front-end same-store sales decreased 1.3%.