Neighbourly Pharmacy has announced a widened loss in its second fiscal quarter. Despite this, the company experienced revenue growth due to new additions to its pharmacy network.
Financial Overview
For the three months ending September 9, the Canadian community pharmacy network reported a net loss of 10.2 million Canadian dollars ($7.5 million), or C$0.23 per share. This is in contrast to a profit of C$134,000, or nil per share, in the previous year.
However, on an adjusted basis, earnings increased by a penny to C$0.13 per share, surpassing analyst expectations. Experts were anticipating a decline to C$0.11 per share.
Revenue for the period saw a nearly 14% increase to C$203.2 million, meeting analyst forecasts. Notably, 75% of the revenue growth this quarter was driven by recently acquired pharmacies within the past year.
Acquisition Agreement
Earlier this month, Neighbourly signed a preliminary agreement with Canadian private equity firm Persistence Capital Partners for a buyout at C$20.50 per share. Persistence Capital already held a stake of approximately 50.2% of Neighbourly’s shares prior to the announcement.
These developments mark an interesting chapter for Neighbourly Pharmacy as it navigates through its financial performance and market changes.
