Higher expenses hit Jean Coutu's profit, offset revenue growth at pharmacy chain - InfoNews

Current Conditions


Higher expenses hit Jean Coutu's profit, offset revenue growth at pharmacy chain

January 08, 2015 - 5:34 AM

LONGUEUIL, Que. - Quebec-based pharmacy company Jean Coutu Group (TSX:PJC.A) says its third-quarter profit fell 10 per cent from a year earlier as increased stock-based and operating expenses offset sales growth.

The company's net income was $56 million, down from $62.5 million, while net profit per share was flat at 30 cents.

The profit fell two cents short of analyst estimates of 32 cents per share, while revenue was above the consensus, according to data from Thomson Reuters.

The company said the appreciation of Coutu's stock value had increased compensation-related share-based expenses to $4.4 million in the quarter, which was $4 million higher than a year before. It also said general and operating expenses were higher, primarily because of some stores in the startup phase.

Coutu's A shares were worth $27 when the third quarter ended, up from $18.26 a year earlier. The shares closed Wednesday at $27.38, prior to the earnings announcement.

Revenue for the quarter ended Nov. 29 was up 3.4 per cent from the third quarter of fiscal 2014, rising to $736.7 million from $712.5 million, due to overall market growth and the expansion of Coutu's network of franchised stores.

On a same-store basis comparing locations open for more than a year, the network's retail sales were up 3.1 per cent overall with pharmacy sales up 3.8 per cent and front-end sales up 2.0 per cent.

News from © The Canadian Press, 2015
The Canadian Press

  • Popular vernon News
  • Comments
  • New mountain highway proposed between Red Deer and Kamloops
    An Alberta development group is pitching the idea of a new highway linking central Alberta to B.C. cutting through the mountains and a section of Banff National Park. The Central Alberta Eco
  • Kamloops firefighter back at work after co-workers saved his life
    Four months after his co-workers saved his life, a Kamloops firefighter is back at work. Mike Silva has been working with Kamloops Fire Rescue for 15 years and was enjoying some time off in
  • Pier 1 closing all of its stores in Canada
    Pier 1 Imports, Inc. announced today that it has entered into bankruptcy protection and is pursuing a sale. The retailer  commenced voluntary Chapter 11 proceedings in the U.S. Bankrupt
  • West Kelowna's Bull Mountain glistens for its close-up
    It’s not a secret that West Kelowna’s family ski hill is getting infused with new life. Bull Mountain Adventure Park is being built on the remnants of Crystal Mountain Resort, an
  • Vernon family captures mesmerizing melting ice
    A Vernon family was on their way home from Kelowna when they made a pit stop after noticing a beautiful scene along Wood Lake. Matthew Royal and his daughters noticed how “cool”
View Site in: Desktop | Mobile