Shoppers Drug Mart Dividend Increase

  ANNUAL DIVIDEND INCREASED BY 6.0% TO $1.06 PER SHARE
  RENEWAL OF SHARE REPURCHASE PROGRAM

TORONTO, Feb. 9, 2012 /CNW/ - Shoppers Drug Mart Corporation (TSX: SC) today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2011.

Fourth Quarter Year-Over-Year Highlights

• Sales increase of 4.3% to $2.607 billion
• Same-store increase of 3.4%
• Pharmacy sales increase of 2.8% to $1.177 billion
• Same-store increase of 2.3%
• Prescription count increase of 3.9%
• Same-store increase of 3.8%
• Front store sales increase of 5.5% to $1.430 billion
• Same-store increase of 4.4%
• Net earnings per share of $0.82, an increase of 5.1%

Fiscal 2011 Highlights

• Sales increase of 2.6% to $10.459 billion
• Same-store increase of 1.9%
• Pharmacy sales increase of 0.8% to $4.997 billion
• Same-store increase of 0.6%
• Prescription count increase of 3.8%
• Same-store increase of 3.8%
• Front store sales increase of 4.4% to $5.462 billion
• Same-store increase of 3.2%
• Net earnings per share of $2.84, an increase of 4.4%
• Declared four quarterly dividends of 25 cents per common share
• Repurchased 5,202,100 common shares at an aggregate cost of $212 million 

Shoppers announced that it increased its dividend by 6% today from $1.00 to $1.06 per share. SC has a dividend payout ratio of 36% and is currently yielding 2.60% with its new dividend increase. Since it started paying a dividend in 2005, Shoppers has managed to increase it every year even through the 2008-2009 melt down as shown in the chart below: