It’s fresh news. Jean-Coutu just released its 2015 fourth quarter and fiscal year results and figures are pretty good.
Overall, revenue increased by 4,2%, net profit per share remained stable at 0,30$ per share vs the same quarter last year.
Jean-Coutu raised its dividend again this year. It’s the 9th consecutive dividend raise if I’m not mistaken. Last year raise was an amazing 17,6% while this year they raise the dividend by a pretty good 10% to 0,11$ per share per quarter.
Since I paid my 200 shares 18,49$ in november 2013 my yield on cost is now at 2,38% which is pretty low but my initial yield was at 1,73% a year and a half ago. Dividend growth is making its job slowly but surely! Plus, the company just announced a share buyback plan which should reduce the outstanding number of share by roughly 4%. Not bad again!
PJC-A.to currently trades at 25,18$ on the TSX. The initial yield is once again at 1,74%. I don’t consider adding to my position at that price for now. Also, it’s important to know that the Quebec government has passed a bill to reduce the pay scale of pharmacist. I don’t know yet if this is going to have an impact on Jean-Coutu’s revenue or not but without further analysis I wouldn’t initiate a new position for now.
The Quebec government wants to force them to give the generic if a generic is available and they have reduced their ability to charge many different fees to the public regime. It’s a cut of at least 172 millions in the pharmacist paychecks based on the news. Plus, other provinces are trying to pass similar regulations.
We’ll see how it goes. But for now I’m a very happy shareholder!