Expanded Scope of Practice: Tailwind for Metro & Loblaws Both Metro and Loblaws reported strong pharmacy performance last quarter, and pointed to pharamcy expanded scope of practice as a contributor to the results:
Loblaws (Shoppers) earning call comments on expanded scope of practice (July 26
th):
“We're pleased with the growth of services related to expanded scope of practice … And remember, the way to think about our expanded scope of practice initiative, which includes the pharmacy led clinics and the expanded scope of practice across all these provinces. Think about it as a fast growing accretive contributor to the business that will drive or will help us drive our financial framework.”
https://seekingalpha.com/article/4620114-loblaw-companies-limited-lblcf-q2-2023-earnings-call-transcript Metro earning call comments on expanded scope of practice (August 9
th):
“Pharmacy Services, the medical acts that the pharmacists are now allowed to do that's a growing -- it's a growing portion of our RX sales which is very encouraging.”
https://seekingalpha.com/article/4626164-metro-inc-mtraf-q3-2023-earnings-call-transcript The above comments aligns with Neighbourly’s comments last quarter, and points to a structural tailwind for the industry. I think the market is still underestimating the long term revenue/profitability boost that NBLY will capture from the evolving role of the pharmacy in community healthcare in Canada. This, combined with continued strong operational execution by the new management team, should get NBLY back to the $20s by next quarter results.