Photo: Olivier Zuida The Duty
The income of Jean Coutu were 744,3 million, an increase of 6%.
A few months to be swallowed up by Metro, the Jean Coutu Group sees finally the stability of the result of the efforts by government to reduce the prices of medicines.
Starting next week, the ceiling of professional allowances paid by generic drug manufacturers — as Pro Doc, a subsidiary of Jean Coutu pharmacy — pharmacists will be restored to 15 %. In addition, the draft law no. 148 of the government Couillard does ensure that the pharmacist-owners are not allowed to buy more than half of their generic drugs from the same manufacturer. Questioned by analysts, the management of the Jean Coutu group explained on Thursday that most of the pharmacists-owners of the chain have already met this limit, which should not have a negative impact on the performance of Pro Doc.
It is the value of the decrease in the net profit of the pharmacy chain, which is equivalent to 47.8 million, or 26 cents per share.
“We do not anticipate any new reforms,” explained the chief financial officer, André Belzile, during a conference call. We should have a better idea of the results of Pro Doc given that there will be stability over the next five years. “
With respect to the quarter ended on September 2, despite an increase in revenues, the pharmacy chain has seen its net income fall by approximately 7 %, to 47.8 million, or 26 ¢ per share. This decline in profits has been attributed to a smaller contribution of Pro Doc since the professional allowances that may be paid by manufacturers of generic drugs are déplafonnées since January. The contribution of the generic drug manufacturer was 7.5 million in the second quarter, compared to $ 17.9 million in the same period last year.
For their part, the income of Jean Coutu were 744,3 million, an increase of 6 %. The sales growth of establishments that have been open at least a year — a key indicator in the retail sector — has been of 4 %. The pharmacy has displayed a better performance than the commercial section.