Wednesday, October 14, 2009

Jean Coutu second-quarter revenue up 7.3 per cent, chain earns $14.9 million

From the Canadian Press:
Growing second-quarter sales at Jean Coutu's (TSX:PJC.A) generic drug manufacturing subsidiary helped the Quebec pharmacy giant offset on its books the final impact from losses generated by a big investment in the U.S.-based Rite Aid (NYSE:RAD) chain.

Drugmaking division Pro-Doc reported gross sales of $22.7 million in the quarter, up from $5.2 million a year earlier. Jean Coutu's pharmacists, who are free to order from any generic manufacturer, rely on Pro Doc to supply about 60 per cent of its needs for a lineup of some 300 drugs.

Jean Coutu has finally written off its 28 per cent stake in Rite Aid, as losses exceeded the carrying value of the investment. During the quarter, its share of the U.S. chain's losses amounted to $24.3 million compared with $73.1 million a year earlier.

Overall, Jean Coutu earned $14.9 million, or seven cents per share, in the period ended Aug. 29. That compared with a loss of $39.1 million or 16 cents a year earlier.

"We are very satisfied with our second-quarter results," CEO Francois Coutu said during a conference call. ...more

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