September 24, 2012

Drugstore chain Rite Aid posts decrease in net loss

American drugstore chain Rite Aid has reported a decrease in net loss to $38.8m in the second quarter (Q2) of fiscal 2013.

By admin-demo

American drugstore chain Rite Aid has reported a decrease in net loss to $38.8m in the second quarter (Q2) of fiscal 2013.

The decline in net loss year over year is due to an increase in adjusted EBITDA and decreases in store closing, impairment, depreciation and amortization charges.

Same-store sales in the 13-week period ending 1 September 2012 were flat from a year ago, consisting of a 1.4% increase in front end sales offset by a 0.7% decrease in pharmacy sales.

Pharmacy sales included an approximate 750 basis point negative impact from new generic introductions.

The company reported revenues of $6.23bn, compared to $6.27bn in last year’s second quarter.

Adjusted EBITDA was $218.7m or 3.5% of revenues for the second quarter, compared to $184.3m or 2.9% of revenues for the corresponding period last year.

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Adjusted EBITDA improved due to increases in front end sales and script count as well as an improvement in pharmacy gross margin resulting from new generic introductions.

During the quarter, the chain relocated four stores, remodeled 147 stores and closed nine stores.

Rite Aid chairman, president and CEO John Standley said, "We have now increased Adjusted EBITDA and same store prescription count for seven consecutive quarters, thanks to chainwide efforts to execute key sales initiatives, operate more efficiently and provide a superior customer experience."

The company has reported decrease in net loss for the first half (H1) ended 1September 2012 to $66,9m, compared to $155, 33m in the same period of fiscal 2012.

Founded in 1968 Rite Aid, currently operates 4,643 stores in 31 states of US as well as the District of Columbia.