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Neighbourly Pharmacy's larger staff vacancies list could be the canary in the coal mine for margin pressure. According to a National Bank of Canada note by Zachary Evershed. Neighbourly's open positions count reversed course in early June, which lost ground on prior improvements. Even though the job openings include postings may not affect margin recovery, Evershed says it is "directionally indicative of reliance on relief pharmacists at levels higher than we anticipated." He has downgraded his forecast on margins to 10% from a previous 10.3% "reflecting an adjustment lower to account for increased expenses owing to staffing challenges, though still up 20 bps y/y." Evershed says this should improve next year. (adriano.marchese@wsj.com)
(END) Dow Jones Newswires
July 19, 2023 09:04 ET (13:04 GMT)
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