UPDATE 1-Jean Coutu misses profit expectations, boosts dividend

Wed May 1, 2013 8:11am EDT
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* Raises dividend by 21.4 pct

* Pharmacy same-store sales down 0.1 pct

* Revenue falls 7 pct

* Same store sales up 0.5 pct

May 1 (Reuters) - Canadian pharmacy chain Jean Coutu Group Inc's fourth-quarter profit missed analysts' expectations as tighter price controls for generic drugs hit revenue.

Price controls have crimped prescription sales growth at Jean Coutu Group and rivals such as Shoppers Drug Mart in recent years. Increasing use of generic drugs has also exacerbated the impact of lower prices.

The company, however, raised its quarterly dividend by 21.4 percent to 8.5 Canadian cents per share.

Excluding a gain related to Jean Coutu's stake in U.S. drugstore chain Rite Aid Corp and other one-time items, Jean Coutu earned 25 Canadian cents per share for the quarter.

Analysts on average expected the company to earn 26 Canadian cents per share, according to Thomson Reuters I/B/E/S.   Continued...