Rite Aid’s Q3 sees same-store script count gains
Rite Aid has announced its operating results for its third quarter 2018. The company posted a net loss of $17.3 million, or $0.02 cents per share, with adjusted net income of $14.7 million ($0.01 per share). Adjusted EBITDA was $142.8 million, or 2.6% of revenue.
Alongside the sales results, Rite Aid announced it had agreed to key terms of an amended drug purchasing deal with McKesson, continuing the two companies’ relationship for an additional 10 years. CEO John Standley said the agreement would provide the company “competitive drug pricing and operating flexibility that will help drive future growth.”
Revenues for the quarter were $5.5 billion, compared with $5.4 billion in the prior-year period. Rite Aid’s retail pharmacy segment saw $4 billion in revenue, a year-over-year increase of 0.4%. The company said an uptick in same-store sales was offset by a reduced store count. Pharmacy services revenues were up 5.6% year over year to $1.5 billion, which Rite Aid attributed to an increase in Medicare Part D membership.
The retail pharmacy segment saw same-store sales increase 1.6%, made up of a 2.1% increase in pharmacy sales and a 1.5% decrease in front-end sales. Pharmacy sales also included a 108-basis point negative impact from generics. Scripts filled, adjusted to 30-day equivalents, were up 2.4% year over year. Prescription sales made up 67.5% of total store sales for the quarter, Rite Aid said.
“Our third-quarter results reflect the progress we’re making in growing our retail and pharmacy benefits management businesses,” Standley said. “We realized our strongest prescription-count performance in over two years and our best comparable-store sales in over three years, driven by the success of our immunization business and other clinical pharmacy services that are benefiting our patients. We look forward to building on this momentum by further improving clinical services in our pharmacy business, enhancing the customer experience in all channels and investing for further growth in both our retail and pharmacy services businesses.”
The company remodeled 21 stores and relocated one store in the quarter, bringing its count of wellness-format stores to 1,748. The company closed one store in the third quarter, bringing its total store count to 2,525.
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