Shoppers Drug Mart Financial Analysis Report

Essay by lsun012University, Master'sA, July 2008

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Shoppers Drug Mart

Financial Analysis Report

Names: ____________

Date: ____________


As of December 31, 2007, Shoppers Drug Mart Corp. (SC.TO) traded at $53.26 per share in the Toronto Stock Exchange. The share's 52-week high was $53.62 while its 52-week low was $53.10. The company had total asset value of $5.644 billion and sales of $8.478 billion in 2007.

Company Background

Shoppers Drug Mart (Shoppers) is a recognized leader in the drugstore and pharmaceutical industry in Canada. Shoppers is the licensor of full-service retail drug stores operating under the name Shoppers Drug Mart (Pharmaprix in Quebec) (Shoppers Annual Information Form, 2007, p.7). First incorporated on November 16th, 1999, the company is now headquartered in Toronto, Ontario. In 2007, the company has a successful year with consolidated sales of approximately $8.5 billion. "As at December 29, 2007 there were 1,057 Shoppers Drug Mart/Pharmaprix retail drug stores owned and operated under license by Associates" (Shoppers Annual Information Form, 2007, p.7).

Shoppers' stores are located throughout Canada, with prime locations in each province to provide convenience to customers. In each retail store, there are various everyday products that consumers may purchase conveniently. "Front store merchandise categories include over-the-counter medications, health beauty aids, cosmetics and fragrances (including prestige brands), everyday household needs and seasonal products" (Shoppers Annual Report, 2007, p.8). Shoppers focuses on exceptional merchandising with unique brands, convenience, and value-added services for customers. "The Company also offers a broad range of high-quality private label products under the Life Brand, Quo, Everyday Market, Bio-Life, Navita and Easypix, among others, and value-added services such as the Healthwatch program, which offers patient counselling and advice on medications and disease management, and the Shoppers Optimum program, one of the largest retail loyalty card programs in Canada (Shoppers Annual Report, 2007, p.8). Over the years, Shoppers has been...