Coutu: Pharmacy growth driving results despite generic price changes
LONGUEUIL, Québec — Jean Coutu Group on Tuesday reported revenue of 635.2 million Canadian dollars (US $598.5 million) during the second quarter ended Aug. 27, an increase of 1.5%. Net profit per share came in at C$0.29, including a C$0.10 gain on sale of Rite Aid's shares, compared with C$0.18 during the second quarter of fiscal year 2011.
Coutu credited the slight lift to market growth and a growing store base, but cautioned that the wave of generic drug introductions, coupled with the price reductions of generic drugs previously decreed by the Québec government, would have a negative drag on earnings. "Despite the price reductions of generic drugs, we have posted a significant growth of our operational results, which demonstrates the success of the implementation of our business plan,” stated François Coutu, president and CEO.
Shares of Coutu stock were down slightly, around 1.2%, from prior-day trading on the Toronto Stock Exchange. Earlier this morning, Coutu stock was down as much as 5%.