From the Vancouver Sun:
Canadian pharmacy company Jean Coutu Group Inc. reported a profit of $10.3-million in the first quarter on Tuesday, thanks to several franchise store openings.
The earnings for the first quarter ended May 30 of the 2010 fiscal year, at 4 cents per share, are an improvement over a net loss of $20.2-million (8 cents) in the same period last year.
Revenue, from merchandise sales to franchises plus franchising activities, rose almost 8% to $619.3-million from $574.3-million in the first quarter of 2009.
"We have reached our objectives in spite of the economic conditions that prevailed during this quarter," Francois Coutu, chief executive, said in a statement. "We intend to maintain the rhythm of our network's expansion and renovation projects and the development of our product offering." ...more
Showing posts with label Jean Coutu. Show all posts
Showing posts with label Jean Coutu. Show all posts
Sunday, July 12, 2009
Tuesday, April 28, 2009
Jean Coutu to boost store size as loss widens
From Reuters:
Jean Coutu Group plans to increase the size of its stores by almost 9 percent this year as the drug-store chain moves to fend off rising competition in its home territory of Quebec.
The Montreal-based chain, which reported a wider fourth-quarter loss on its investment in U.S. drug store chain Rite Aid (RAD.N), said it plans to increase the total square footage of its stores by 8.5 percent to 9 percent.
It also said it has earmarked about C$80 million ($66 million) in capital expenditures for this year.
This was seen as a defensive move by some as Shoppers Drug Mart, Canada's biggest pharmacy chain, eyes the lucrative Quebec market and its growing prescription sales.
The largely French-speaking province is a highly coveted market because of the high number of prescriptions dispensed there -- an average 90,000 per drug store annually versus 40,000 elsewhere in Canada. ...more
Jean Coutu Group plans to increase the size of its stores by almost 9 percent this year as the drug-store chain moves to fend off rising competition in its home territory of Quebec.
The Montreal-based chain, which reported a wider fourth-quarter loss on its investment in U.S. drug store chain Rite Aid (RAD.N), said it plans to increase the total square footage of its stores by 8.5 percent to 9 percent.
It also said it has earmarked about C$80 million ($66 million) in capital expenditures for this year.
This was seen as a defensive move by some as Shoppers Drug Mart, Canada's biggest pharmacy chain, eyes the lucrative Quebec market and its growing prescription sales.
The largely French-speaking province is a highly coveted market because of the high number of prescriptions dispensed there -- an average 90,000 per drug store annually versus 40,000 elsewhere in Canada. ...more
Monday, January 12, 2009
Jean Coutu posts huge loss from ailing Rite Aid
From CBC News:
The Jean Coutu Group Inc. posted a huge third-quarter loss after writing down the value of its investment in a distressed U.S. drug store, the Canadian pharmacy chain said Thursday.
Quebec-based Jean Coutu lost $399.2 million for the three months ended Nov. 28 versus a profit of $9.5 million for a comparable period one year earlier.
Those results translated into a loss of $1.66 a share for the latest three-month period versus a four cent gain for the same time in 2007. ...more
The Jean Coutu Group Inc. posted a huge third-quarter loss after writing down the value of its investment in a distressed U.S. drug store, the Canadian pharmacy chain said Thursday.
Quebec-based Jean Coutu lost $399.2 million for the three months ended Nov. 28 versus a profit of $9.5 million for a comparable period one year earlier.
Those results translated into a loss of $1.66 a share for the latest three-month period versus a four cent gain for the same time in 2007. ...more
Sunday, January 11, 2009
Grocery and pharmacy retailers stable amid uncertain retail environment: analysts
From the Truro (NS) Daily News:
Companies that sell food, drugs and other consumer staples are best positioned to prosper in an uncertain retail environment that appears headed for a decline, industry observers say.
Keith Howlett of Desjardins Securities says leading grocery and pharmacy chains offer better earnings visibility at time when consumers remain cautious about spending.
Among the beneficiaries are grocery chains Metro Inc. (TSX:MRU.A) and Loblaw (TSX:L), along with pharmacy leaders Jean Coutu Group (TSX:PJC) and Shoppers Drug Mart (TSX:SC).
While Wal-Mart didn’t separate its Canadian results, it said Thursday that food and consumables were among the categories that performed well as same-store sales growth disappointed analysts.
Jean Coutu reported Thursday that its prescription sales remained strong during the third quarter although sales of non-prescription goods lagged expectations at 1.6 per cent growth. Chief executive Francois Coutu, however, noted consumers were increasingly seeking value through purchases of promotional items, which tend to be lower-priced. ...more
Companies that sell food, drugs and other consumer staples are best positioned to prosper in an uncertain retail environment that appears headed for a decline, industry observers say.
Keith Howlett of Desjardins Securities says leading grocery and pharmacy chains offer better earnings visibility at time when consumers remain cautious about spending.
Among the beneficiaries are grocery chains Metro Inc. (TSX:MRU.A) and Loblaw (TSX:L), along with pharmacy leaders Jean Coutu Group (TSX:PJC) and Shoppers Drug Mart (TSX:SC).
While Wal-Mart didn’t separate its Canadian results, it said Thursday that food and consumables were among the categories that performed well as same-store sales growth disappointed analysts.
Jean Coutu reported Thursday that its prescription sales remained strong during the third quarter although sales of non-prescription goods lagged expectations at 1.6 per cent growth. Chief executive Francois Coutu, however, noted consumers were increasingly seeking value through purchases of promotional items, which tend to be lower-priced. ...more
Monday, October 06, 2008
Jean Coutu Group Reports Net Loss on Rite Aid Stake
From Bloomberg:
Jean Coutu Group Inc., the Canadian drugstore chain that owns about a third of Rite Aid Corp., reported a second-quarter loss because of its stake in the money-losing U.S. pharmacy chain. Sales missed analysts' estimate as consumers slowed spending.
The net loss was C$39.1 million ($36 million), or 16 cents a share, compared with net income of C$8.3 million, or 3 cents, a year earlier, the Longueuil, Quebec-based company said today in a statement.
Rite Aid reported Sept. 25 that its second-quarter loss more than doubled to $222 million, or 27 cents a share, because of declining sales and higher financing costs. It was Rite Aid's fifth straight unprofitable quarter. Canadian accounting rules require Jean Coutu to include results from its 30 percent stake in Rite Aid in its financial statements.
``Rite Aid is still a bit of an albatross, even though it's only worth about 10 to 12 percent of the stock,'' David Hartley, an analyst with BMO Capital Markets, said in a telephone interview. ...more
Jean Coutu Group Inc., the Canadian drugstore chain that owns about a third of Rite Aid Corp., reported a second-quarter loss because of its stake in the money-losing U.S. pharmacy chain. Sales missed analysts' estimate as consumers slowed spending.
The net loss was C$39.1 million ($36 million), or 16 cents a share, compared with net income of C$8.3 million, or 3 cents, a year earlier, the Longueuil, Quebec-based company said today in a statement.
Rite Aid reported Sept. 25 that its second-quarter loss more than doubled to $222 million, or 27 cents a share, because of declining sales and higher financing costs. It was Rite Aid's fifth straight unprofitable quarter. Canadian accounting rules require Jean Coutu to include results from its 30 percent stake in Rite Aid in its financial statements.
``Rite Aid is still a bit of an albatross, even though it's only worth about 10 to 12 percent of the stock,'' David Hartley, an analyst with BMO Capital Markets, said in a telephone interview. ...more
Tuesday, July 08, 2008
Jean Coutu Group Rises; Retailer Expects Sales Growth
From Bloomberg:
Jean Coutu Group Inc., the Canadian pharmacy chain that became Rite Aid Corp.'s biggest shareholder in 2007, rose 2 percent in Toronto trading after the retailer said sales growth should improve later this year.
Jean Coutu said today the first-quarter net loss widened to C$20.2 million ($19.8 million), or 8 cents a share, in the three months through May 31, mostly from its 30 percent Rite Aid stake that must be reported under Canadian accounting rules. The U.S. chain posted four straight quarters without profit.
The company sees earnings growth coming from new outlets in Quebec and the Rite Aid stake as the third-largest U.S. drugstore chain finishes integrating Eckerd and Brooks stores obtained from Jean Coutu. Sales gains from renovated sites will kick in later this year, Chief Executive Officer Francois Coutu said today.
``They're very well positioned for growth here,'' Airan Friedman, an analyst with Accountability Research Corp., said in a telephone interview. ``It's a defensive name, and it's where you want to be in the economic climate that we're in.'' ...more
Jean Coutu Group Inc., the Canadian pharmacy chain that became Rite Aid Corp.'s biggest shareholder in 2007, rose 2 percent in Toronto trading after the retailer said sales growth should improve later this year.
Jean Coutu said today the first-quarter net loss widened to C$20.2 million ($19.8 million), or 8 cents a share, in the three months through May 31, mostly from its 30 percent Rite Aid stake that must be reported under Canadian accounting rules. The U.S. chain posted four straight quarters without profit.
The company sees earnings growth coming from new outlets in Quebec and the Rite Aid stake as the third-largest U.S. drugstore chain finishes integrating Eckerd and Brooks stores obtained from Jean Coutu. Sales gains from renovated sites will kick in later this year, Chief Executive Officer Francois Coutu said today.
``They're very well positioned for growth here,'' Airan Friedman, an analyst with Accountability Research Corp., said in a telephone interview. ``It's a defensive name, and it's where you want to be in the economic climate that we're in.'' ...more
Tuesday, June 24, 2008
Shoppers Drug Mart and Jean Coutu may feel the heat from U.S.
From the Financial Post:
He already had a “sell” rating on shares of Shoppers Drug Mart Corp., but a deal last week that appears to signal a U.S. health care player’s push up north gave Octagon Capital analyst Robert Gibson even more reason to be bearish on Canada’s largest pharmacy chain.
On June 19, health care logistics provider McKesson Canada, a division of San Francisco-based McKesson Corp., announced that it is buying Quebec-based Group PharmEssor Inc., which consists of 270 independently-owned pharmacies in Quebec, Ontario and the Atlantic provinces. The chain operates under the Proxim and ProxiMed brands. In the U.S., McKesson runs Health Mart, the number one independent retail pharmacy, Mr. Gibson noted.
“It would appear that this Proxim acquisition is McKesson’s move north with their Health Mart model,” he told clients.
The company’s vertical integration likely means the McKesson-Proxim combination will become a stronger competitor to major chains in Quebec and the Atlantic provinces, including Jean Coutu Group Inc., the analyst said. ...more
He already had a “sell” rating on shares of Shoppers Drug Mart Corp., but a deal last week that appears to signal a U.S. health care player’s push up north gave Octagon Capital analyst Robert Gibson even more reason to be bearish on Canada’s largest pharmacy chain.
On June 19, health care logistics provider McKesson Canada, a division of San Francisco-based McKesson Corp., announced that it is buying Quebec-based Group PharmEssor Inc., which consists of 270 independently-owned pharmacies in Quebec, Ontario and the Atlantic provinces. The chain operates under the Proxim and ProxiMed brands. In the U.S., McKesson runs Health Mart, the number one independent retail pharmacy, Mr. Gibson noted.
“It would appear that this Proxim acquisition is McKesson’s move north with their Health Mart model,” he told clients.
The company’s vertical integration likely means the McKesson-Proxim combination will become a stronger competitor to major chains in Quebec and the Atlantic provinces, including Jean Coutu Group Inc., the analyst said. ...more
Tuesday, June 17, 2008
Rite Aid deal a bitter pill for Jean Coutu in first year after sale
From the Providence (RI) Journal:
The family that controlled the Warwick-based Brooks drugstore chain has seen the value of its stock holdings melt away in the year since it sold the company to a rival pharmacy operator.
Canada’s Jean Coutu Group (PJC.A:TSX) last year sold more than 1,850 Brooks and Eckerd drugstores and 6 distribution centers to Rite Aid Corp. for $3.9 billion in cash and stock in a deal that closed June 4, 2007.
Under the deal, Rite Aid paid $2.3 billion in cash to Jean Coutu and issued the company headquartered in Longueuil, Quebec, about 252 million shares, according to filings made last year to the U.S. Securities and Exchange Commission. The acquisition made Jean Coutu Group the largest Rite Aid shareholder, with 32 percent of common stock and about 30 percent of voting power. Jean Coutu’s holding in the third-largest American drugstore chain remains unchanged. ...more
The family that controlled the Warwick-based Brooks drugstore chain has seen the value of its stock holdings melt away in the year since it sold the company to a rival pharmacy operator.
Canada’s Jean Coutu Group (PJC.A:TSX) last year sold more than 1,850 Brooks and Eckerd drugstores and 6 distribution centers to Rite Aid Corp. for $3.9 billion in cash and stock in a deal that closed June 4, 2007.
Under the deal, Rite Aid paid $2.3 billion in cash to Jean Coutu and issued the company headquartered in Longueuil, Quebec, about 252 million shares, according to filings made last year to the U.S. Securities and Exchange Commission. The acquisition made Jean Coutu Group the largest Rite Aid shareholder, with 32 percent of common stock and about 30 percent of voting power. Jean Coutu’s holding in the third-largest American drugstore chain remains unchanged. ...more
Tuesday, April 29, 2008
U.S. drug arm pushes Jean Coutu into the red
From the Financial Post:
Jean Coutu Group Inc., Canada's second-biggest pharmacy chain, reported a third-quarter loss after losing money on its holdings in U.S. drug retailer Rite Aid Corp.
The net loss was $269.2-million, or $1.08 a share, in the three months through March 1, compared with net income of $232.1-million (89 cents) a year earlier, the Longueuil, Que.-based company said on Tuesday in a statement.
Profit excluding Jean Coutu's (PJC.A/TSX) stake in Rite Aid missed analysts' estimates by 1 cent.
Rite Aid reported April 10 it had a loss of US$952.2-million on an income-tax charge and costs to integrate the Brooks and Eckerd pharmacies it bought from Jean Coutu. The Canadian company holds a 30% stake in Camp Hill, Penn.- based Rite Aid that it acquired as part of its US$4-billion sale of the U.S. pharmacy chains last year. ...more
Jean Coutu Group Inc., Canada's second-biggest pharmacy chain, reported a third-quarter loss after losing money on its holdings in U.S. drug retailer Rite Aid Corp.
The net loss was $269.2-million, or $1.08 a share, in the three months through March 1, compared with net income of $232.1-million (89 cents) a year earlier, the Longueuil, Que.-based company said on Tuesday in a statement.
Profit excluding Jean Coutu's (PJC.A/TSX) stake in Rite Aid missed analysts' estimates by 1 cent.
Rite Aid reported April 10 it had a loss of US$952.2-million on an income-tax charge and costs to integrate the Brooks and Eckerd pharmacies it bought from Jean Coutu. The Canadian company holds a 30% stake in Camp Hill, Penn.- based Rite Aid that it acquired as part of its US$4-billion sale of the U.S. pharmacy chains last year. ...more
Monday, January 14, 2008
Jean Coutu's bet on Rite Aid a loser so far
From the Montreal Gazette:
or many Canadian retailers, venturing into the United States has been the equivalent of a trek through Death Valley.
The number of Canadian companies that have stumbled and fallen in the U.S. retail market is a clear sign what works in this country is no guarantee of success south of the border.
The Jean Coutu Group thought it had solved that problem last winter when it sold off its underperforming U.S. pharmacy chains, Brooks and Eckerd, to Rite Aid, the No. 3 player in the American drug-store market.
As a result, Jean Coutu became the largest single investor in Rite Aid, with a 31-per-cent block of shares and four board seats. It nourished new hope that U.S. managers would do a better job than it could do in that country. ...more
or many Canadian retailers, venturing into the United States has been the equivalent of a trek through Death Valley.
The number of Canadian companies that have stumbled and fallen in the U.S. retail market is a clear sign what works in this country is no guarantee of success south of the border.
The Jean Coutu Group thought it had solved that problem last winter when it sold off its underperforming U.S. pharmacy chains, Brooks and Eckerd, to Rite Aid, the No. 3 player in the American drug-store market.
As a result, Jean Coutu became the largest single investor in Rite Aid, with a 31-per-cent block of shares and four board seats. It nourished new hope that U.S. managers would do a better job than it could do in that country. ...more
Sunday, January 13, 2008
Jean Coutu shares one great deal
From the Financial Post:
Here’s a deal for investors: buy one drug store chain, get one free - or to be precise, 32% of one for free.
Shares in drug store group Jean Coutu Group (PJC) Inc. are so cheap, analysts said Friday, that at Thursday’s closing price of $10.69 for the subordinate voting shares, investors are assigning no value in Coutu’s 32% stake in U.S. drug store giant Rite Aid.
Coutu acquired the stake in Rite Aid last year as partial payment for its troubled 1,858—store Eckerd chain in the U.S., which it had acquired in 2004. In the past year, however, the stock price of Rite Aid has fallen by 66%, exacerbated by a 28% fall in the past week after Rite Aid reported soft December sales. Yesterday, Standard & Poor’s cut Rite Aid’s outlook to stable from negative, maintaining its “B” junk credit rating. ...more
Here’s a deal for investors: buy one drug store chain, get one free - or to be precise, 32% of one for free.
Shares in drug store group Jean Coutu Group (PJC) Inc. are so cheap, analysts said Friday, that at Thursday’s closing price of $10.69 for the subordinate voting shares, investors are assigning no value in Coutu’s 32% stake in U.S. drug store giant Rite Aid.
Coutu acquired the stake in Rite Aid last year as partial payment for its troubled 1,858—store Eckerd chain in the U.S., which it had acquired in 2004. In the past year, however, the stock price of Rite Aid has fallen by 66%, exacerbated by a 28% fall in the past week after Rite Aid reported soft December sales. Yesterday, Standard & Poor’s cut Rite Aid’s outlook to stable from negative, maintaining its “B” junk credit rating. ...more
Thursday, January 10, 2008
Coutu feels Rite Aid's pain
From the Globe and Mail:
Less than a year ago, senior executives were touting Jean Coutu Group (PJC) Inc.'s 32-per-cent stake in U.S. pharmacy chain Rite Aid Corp. as a stellar opportunity to reap big rewards from solid growth in the drugstore sector south of the border.
The story – at least on paper – had its merits. Coutu's Rite Aid investment certainly helped offset concerns over how exactly Coutu intended to expand its Canadian drugstore operations beyond its limited Quebec base.
But Rite Aid, which is struggling to cope with fierce competition from bigger rivals, has proven to be a singular headache so far for the Coutu family, which holds a controlling position in the Longueuil, Que.-based Coutu chain.
On Thursday, shareholders are likely to get their first glimpse at what Coutu plans to do about the red ink and poor sales performance at Rite Aid when Coutu reports second-quarter results and management hosts a conference call. ...more
Less than a year ago, senior executives were touting Jean Coutu Group (PJC) Inc.'s 32-per-cent stake in U.S. pharmacy chain Rite Aid Corp. as a stellar opportunity to reap big rewards from solid growth in the drugstore sector south of the border.
The story – at least on paper – had its merits. Coutu's Rite Aid investment certainly helped offset concerns over how exactly Coutu intended to expand its Canadian drugstore operations beyond its limited Quebec base.
But Rite Aid, which is struggling to cope with fierce competition from bigger rivals, has proven to be a singular headache so far for the Coutu family, which holds a controlling position in the Longueuil, Que.-based Coutu chain.
On Thursday, shareholders are likely to get their first glimpse at what Coutu plans to do about the red ink and poor sales performance at Rite Aid when Coutu reports second-quarter results and management hosts a conference call. ...more
Sunday, December 23, 2007
Jean Coutu breaks into generic drug manufacturing
From the Globe and Mail:
In a departure from its core business, drugstore chain Jean Coutu Group (PJC) Inc. is diversifying into the manufacturing of generic drugs.
Longueuil, Que.-based Jean Coutu said yesterday it has acquired Pro-Doc Ltée., a small generic drug maker based in Laval, Que. Terms of the deal were not disclosed.
Jean Coutu made the announcement on the same day it learned its stake in U.S. drugstore giant Rite Aid Corp. took a $325-million (U.S.) hit.
"This is a new activity for us. It follows on our having sold our U.S. operations and repaying most of our debt and seeking new growth opportunities," said André Belzile, Jean Coutu's senior vice-president of finance and corporate affairs.
"It's embryonic. We want to learn. We'll see where it takes us," Mr. Belzile said in an interview. ...more
In a departure from its core business, drugstore chain Jean Coutu Group (PJC) Inc. is diversifying into the manufacturing of generic drugs.
Longueuil, Que.-based Jean Coutu said yesterday it has acquired Pro-Doc Ltée., a small generic drug maker based in Laval, Que. Terms of the deal were not disclosed.
Jean Coutu made the announcement on the same day it learned its stake in U.S. drugstore giant Rite Aid Corp. took a $325-million (U.S.) hit.
"This is a new activity for us. It follows on our having sold our U.S. operations and repaying most of our debt and seeking new growth opportunities," said André Belzile, Jean Coutu's senior vice-president of finance and corporate affairs.
"It's embryonic. We want to learn. We'll see where it takes us," Mr. Belzile said in an interview. ...more
Wednesday, November 14, 2007
A hard act to follow
This article is a great recap of the battle between the big pharmacy chains in Canada. I also liked the analysis as to why Walgreens or CVS are probably not looking north in the near future.
From the Globe and Mail:
The mundane name aside, Store No. 1206 is not your typical pharmacy.
In fact, at first, second and third blush, the new Burlington, Ont., outlet of Shoppers Drug Mart looks like anything but a suburban drug mart. Right at the door there's the beauty section, lined with glass shelves of facial creams, makeup and a blue-glass jar of Guerlain cream at $435. Just beyond that is the sweet scent of Chanel No. 5 perfume ($126) and the smile of a cosmetician eager to assess your beauty challenges.
Then there's the more predictable line of Christmas decorations and a display of the chain's private label Le Chocolat, a premium line of imported Belgian chocolates selling this week for $16.99 a box. All that before one reaches the store's namesake - the almost forgotten drug counter at the back - and a route to the cash that passes today's most pressing consumer needs, from $3.99 milk to a $229 MP3 player.
For Shoppers Drug Mart Corp., this is all by design. The big drugstore chains have reinvented themselves - again - in order to dominate the middle ground between high-margin convenience stores and high-volume department stores. They have transformed into retail players, and are barely recognizable as the local pharmacies where your grandparents bought medicine and cod liver oil. Today, the big chains focus on cosmetics and private labels, whose gross profit margins are thought to be two or three times that of many prescription medications.
For François Jean Coutu, chief executive officer of Jean Coutu Group (PJC) Inc., it comes down to one word: destination. ...more
Wednesday, October 17, 2007
Jean Coutu Group swings to Q1 profit of $8.3M, eyes more sales to older consumers
From the Canadian Press:
Debt-free and itching to grow after selling its U.S. stores, Jean Coutu Group (TSX:PJC.A) plans to preserve its dominance in Quebec while eventually adopting a new store name for expansion in English Canada.
Over the next three years, the pharmacy chain plans to add 50 stores in Quebec, remodel many others and make a concerted effort to enter neighbouring markets.
"We will definitely work hard to maintain our leadership position here in the province of Quebec," newly installed CEO Francois Coutu said in an interview following the company's annual meeting.
"Definitely within the three-year (strategic) program that I am mentioning we'll be a force in Ontario." ...more
Debt-free and itching to grow after selling its U.S. stores, Jean Coutu Group (TSX:PJC.A) plans to preserve its dominance in Quebec while eventually adopting a new store name for expansion in English Canada.
Over the next three years, the pharmacy chain plans to add 50 stores in Quebec, remodel many others and make a concerted effort to enter neighbouring markets.
"We will definitely work hard to maintain our leadership position here in the province of Quebec," newly installed CEO Francois Coutu said in an interview following the company's annual meeting.
"Definitely within the three-year (strategic) program that I am mentioning we'll be a force in Ontario." ...more
Tuesday, August 28, 2007
Rite Aid is key to Coutu's share health
From the Globe and Mail:
Most Canadian investors have never heard of Rite Aid Corp., even though plenty own shares in it. It's the third biggest drugstore chain in the United States and its biggest shareholder is Jean Coutu Group, the Quebec-based pharmacy chain.
If you own Jean Coutu stock, or if you're thinking about it, looking long and hard at Rite Aid ought to be top of mind because it will likely make or break your investment - and that's becoming more true by the day.
Jean Coutu's investment in Rite Aid, which accounts for a third of the U.S. company's stock, stems from a deal the two companies struck designed to let Jean Coutu extricate itself from a mess.
The Canadian company made its first big foray into the United States 13 years ago with the purchase of a chain of drugstores on Rhode Island called Brooks. That went pretty well. But in 2004, the company made a much bigger, bolder move by buying 1,500 Eckerd stores up and down the eastern seaboard. ...more
Most Canadian investors have never heard of Rite Aid Corp., even though plenty own shares in it. It's the third biggest drugstore chain in the United States and its biggest shareholder is Jean Coutu Group, the Quebec-based pharmacy chain.
If you own Jean Coutu stock, or if you're thinking about it, looking long and hard at Rite Aid ought to be top of mind because it will likely make or break your investment - and that's becoming more true by the day.
Jean Coutu's investment in Rite Aid, which accounts for a third of the U.S. company's stock, stems from a deal the two companies struck designed to let Jean Coutu extricate itself from a mess.
The Canadian company made its first big foray into the United States 13 years ago with the purchase of a chain of drugstores on Rhode Island called Brooks. That went pretty well. But in 2004, the company made a much bigger, bolder move by buying 1,500 Eckerd stores up and down the eastern seaboard. ...more
Tuesday, August 14, 2007
Jean Coutu to retire again as CEO of pharmacy chain after closing U.S. sale
From CBC News:
Jean Coutu has no plans to permanently hang up his ubiquitous white lab coat even as he once again hands the management reins of the drugstore chain he founded 38 years ago to his son Francois.
"He will remain as chairman of the board and he always likes to wear his white jacket, anyhow," Francois said in an interview Friday after the company released its fourth-quarter and 2007 fiscal year results.
The Montreal-area pharmacy chain posted a US$6.9-million quarterly net loss, but earned US$140.8 million for the year.
Francois will assume the title of chief executive officer after the annual meeting in October. It was a position he held in 2002 before relinquishing it three years later as he was demoted to president and head of Canadian operations amid problems in a massive U.S. acquisition. ...more
Jean Coutu has no plans to permanently hang up his ubiquitous white lab coat even as he once again hands the management reins of the drugstore chain he founded 38 years ago to his son Francois.
"He will remain as chairman of the board and he always likes to wear his white jacket, anyhow," Francois said in an interview Friday after the company released its fourth-quarter and 2007 fiscal year results.
The Montreal-area pharmacy chain posted a US$6.9-million quarterly net loss, but earned US$140.8 million for the year.
Francois will assume the title of chief executive officer after the annual meeting in October. It was a position he held in 2002 before relinquishing it three years later as he was demoted to president and head of Canadian operations amid problems in a massive U.S. acquisition. ...more
Monday, June 04, 2007
Jean Coutu closes deal to sell U.S. pharmacies
From the Toronto Star:
Jean Coutu Group (TSX: PJC.A) officially announced Monday that it had closed a US$3.9 billion deal to sell U.S. Brooks and Eckerd pharmacies and distribution centres to Rite Aid.
The Quebec-based company received US$2.36 billion in cash and 250 million shares of Rite Aid common stock that provide about 32 per cent common equity interest in the U.S. giant.
"The completion of this transaction is a transformational event for the shareholders of The Jean Coutu Group," pharmacy chairman Jean Coutu said in a news release. ...more
Jean Coutu Group (TSX: PJC.A) officially announced Monday that it had closed a US$3.9 billion deal to sell U.S. Brooks and Eckerd pharmacies and distribution centres to Rite Aid.
The Quebec-based company received US$2.36 billion in cash and 250 million shares of Rite Aid common stock that provide about 32 per cent common equity interest in the U.S. giant.
"The completion of this transaction is a transformational event for the shareholders of The Jean Coutu Group," pharmacy chairman Jean Coutu said in a news release. ...more
Wednesday, April 18, 2007
Jean Coutu's profits surge
I'm going to try to post more Canadian pharmacy business stories when they come up. Does this interest you or should I keep the articles more clinical in nature?
From CBC News:
Quebec-based pharmacy chain Jean Coutu Group reported its best quarterly profit in nine years on Tuesday.
For the third quarter, it earned $184 million US, up almost six-fold from $31.6 million US in the same quarter a year ago.
Jean Coutu three-month trading
The bulk of the gain stems from a rise in shares that Jean Coutu received for selling its 1,850 drugstores in the Brooks and Eckerd chains in the U.S. to Rite Aid. ...more
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