BC-The Jean Coutu Group: First Quarter of Fiscal Year 2013 Results,2

(http://www.jeancoutu.com/)

The Jean Coutu Group (PJC) Inc. (TSX:PJC.A) (the "Corporation" or the

"Jean Coutu Group") reported its financial results today for the first

quarter of fiscal year 2013 ended June 2, 2012.

Summary of results

(Unaudited, in millions of Canadian dollars, except per share amounts)

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Q1 - 2013 Q1 - 2012

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$ $

Revenues 681.5 660.6

Operating income before amortization ("OIBA") 79.4 77.1

Gains related to the investment in Rite Aid 348.0 -

Net profit 397.4 49.9

Per share 1.81 0.22

Net profit before gains related to the investment in Rite

Aid and change in fair value of other financial assets

(1) 51.7 49.6

Per share 0.24 0.22

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(1) See non-IFRS financial measure section.

Highlights

-- Revenues amounted to $681.5 million compared to $660.6 million during

the first quarter of fiscal year 2012, a 3.2% increase.

-- Increase of OIBA by 3.0% for the first quarter ended June 2, 2012,

despite the price reduction of generic drugs since April 20, 2012.

-- Repurchase of 507,600 Class A subordinate voting shares at an average

price of $15.15 per share during the first quarter of fiscal year 2013.

-- Gain on disposals of investment in Rite Aid totalling $82.8 million

following the sale of 56,000,000 common shares and unrealized gain

related to the investment in Rite Aid of $265.2 million following the

change in accounting method due to the Corporation's loss of significant

influence in Rite Aid.

Financial results

"We are very satisfied with the results of the first quarter of fiscal

year 2013 which demonstrate the excellent performance of our

operations. Our network retail sales, and more particularly those of

the pharmaceutical section, posted a significant increase despite the

price reductions of generic drugs," said Francois J. Coutu, President

and Chief Executive Officer. "We began fiscal year 2013 with optimism

and we will continue to put the necessary efforts to ensure our growth

and maintain our leadership."

Revenue

Revenue consists mainly of sales and other revenues derived from

franchising activities. Merchandise sales to PJC franchisees made

mostly through our distribution centres account for the greater part

of our sales.

Revenue amounted to $681.5 million during the first quarter ended June

2, 2012, compared with $660.6 million during the first quarter ended

May 28, 2011, an increase of 3.2%. This increase is attributable to

overall market growth and the expansion of the PJC network of

franchised stores, despite the deflationary impact on revenue due to

the introduction of the generic version of some drugs as well as the

price reductions of generic drugs previously decreed by the Quebec

government.

OIBA

OIBA increased by $2.3 million to $79.4 million for the quarter ended

June 2, 2012 compared with $77.1 million for the quarter ended May 28,

2011. This increase is mostly attributable to a strong operational

performance of the generic drugs segment as well as the franchising

activities, despite the reduction of generic drugs prices to the

lowest selling price granted to other provincial drug insurance

programs since April 20, 2012. OIBA as a percentage of revenue ended

the first quarter of fiscal year 2013 at 11.7% same as for the first

quarter of the previous fiscal year.

Pro Doc

Gross sales of Pro Doc drugs, net of intersegments eliminations,

amounted to $37.8 million during the quarter ended June 2, 2012,

compared with $35.9 million during the quarter ended May 28, 2011. Pro

Doc's contribution to the consolidated OIBA amounted to $15.2 million

during the quarter ended June 2, 2012, compared with $13.5 million

during the quarter ended May 28, 2011. Pro Doc's contribution to the

consolidated OIBA as a percentage of gross sales net of intersegment

eliminations ended the first quarter of fiscal year 2013 at 40.2%

compared with 37.6% for the same period of the previous fiscal year.

Gains related to the investment in Rite Aid

During the quarter ended June 2, 2012, the Corporation sold 56,000,000

common shares of Rite Aid. These shares were sold for a total proceed

of $82.8 million, net of related costs which was recorded as a gain on

investment since the carrying value of the investment in Rite Aid was

previously written-off. Following the sale of those shares, the

Corporation lost its significant influence over Rite Aid.

Consequently, this investment, which was previously considered as an

investment in an associate and accounted for under the equity method,

is now considered as an available-for-sale investment and is accounted

for at fair value. This change generated a non-cash gain of $265.2

million (US$267.6 million) in the Corporation's consolidated statement

of income for the 13-week period ended June 2, 2012 which was the fair

value of the 178,401,162 common shares that the Corporation owned at

the date of its loss of significant influence. Subsequent changes in

the fair value of the investment in Rite Aid are accounted for in the

Corporation's consolidated statement of comprehensive income. As a

result, for the 13-week period ended June 2, 2012, the Corporation

recorded a $39.0 million loss in fair value in the consolidated

statement of comprehensive income. As at June 2, 2012, the Corporation

held 178,401,162 common shares of Rite Aid (an interest of 19.84 and

the fair value of the investment was $226.2 million.

Net profit

Net profit amounted to $397.4 million ($1.81 per share) during the

quarter ended June 2, 2012 compared with $49.9 million ($0.22 per

share) during the quarter ended May 28, 2011. The increase in net

profit is attributable to a $82.8 million realized gain and a $265.2

million unrealized gain related to the investment in Rite Aid.

Furthermore, the net profit includes a decrease in value of other

financial assets amounting to $2.3 million for the first quarter ended

June 2, 2012, compared with an increase of $0.3 million for the

quarter ended May 28, 2011. The net profit before gains related to the

investment in Rite Aid and change in fair value of other financial

assets amounted to $51.7 million ($0.24 per share) during the quarter

ended June 2, 2012, compared with $49.6 million ($0.22 per share)

during the quarter ended May 28, 2011.

Information on the PJC network of franchised stores

The Corporation carries on the franchising activity under the banners

of PJC Jean Coutu, PJC Clinique, PJC Jean Coutu Sante and PJC Jean

Coutu Sante Beaute, operates two distribution centres and coordinates

several other services for the benefit of its franchisees.

On a same-store basis, the PJC network's retail sales grew by 3.4%,

pharmacy sales gained 4.0% and front-end sales increased by 2.5%

during the first quarter ended June 2, 2012 compared with the same

period last year. During the first quarter ended June 2, 2012, sales

of non-prescription drugs, which represented 8.6% of total retail

sales, increased by 0.6% whereas these sales had increased by 6.6% for

the same period of fiscal year 2012.

Generic drugs reached 58.8% of drugs prescriptions during the first

quarter of fiscal year 2013 compared with 56.5% during the same

quarter of the previous fiscal year. The increase in the number of

generic drugs prescriptions with lower selling prices than brand name

drugs had a deflationary impact on the pharmacy's retail sales.

Therefore, the introduction of new generic drugs reduced pharmacy's

retail sales growth by 1.1% and price reductions of generic drugs

decreed by the Quebec government reduced the growth of those sales by

1.1% for the first quarter of fiscal year 2013.

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Network performance (1)(unaudited) Q1 - 2013 Q1 - 2012

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Retail sales (in millions of dollars) $998.3 $957.2

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Retail sales growth (in percentage)

Total stores

Total 4.3% 2.9%

Pharmacy 5.1% 2.2%

Front-end 3.3% 3.4%

Same store

Total 3.4% 0.9%

Pharmacy 4.0% 0.1%

Front-end 2.5% 1.6%

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Prescriptions growth (in percentage)

Total stores 6.5% 7.8%

Same store 5.3% 5.6%

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(1) Franchised outlets' retail sales are not included in the Corporation's

Consolidated Financial Statements.

PJC network of franchised stores expansion

During the first quarter of fiscal year 2013, there were 3 store

openings in the PJC network of franchised stores, including 1

relocation and 1 store closing. In addition, 6 stores were

significantly renovated or expanded.

Normal Course Issuer Bid

On May 3, 2012, the Corporation announced its intention to repurchase

for cancellation, when it is considered advisable, through the

facilities of the Toronto Stock Exchange and in accordance with its

requirements, up to 9,398,000 of its outstanding Class A subordinate

voting shares, representing approximately 10% of the current public

float of such shares, over a 12-month period ending no later than May

6, 2013. The shares were or will be repurchased through the facilities

of the Toronto Stock Exchange and in accordance with its requirements.

Repurchased shares will be cancelled.

For the 13-week period ended June 2, 2012, the Corporation repurchased

507,600 Class A subordinate voting shares at an average price of

$15.15 per share for a total consideration of $7.7 million including

related costs. An amount of $5.0 million representing the excess of

the purchase price over the carrying value of the repurchased shares

was included in retained earnings for the 13-week periods ended June

2, 2012. The shares repurchased during the 13-week periods ended June

2, 2012 and May 28, 2011 were cancelled during that period, except for

128,000 shares that were cancelled after June 2, 2012.

Dividend

The Board of the Jean Coutu Group declared a quarterly dividend of

$0.07 per share. This dividend will be paid on August 10, 2012, to all

holders of Class "A" subordinate voting shares and holders of Class

"B" shares listed in the Corporation's shareholder ledger as of July

27, 2012.

Strategies and outlook

With its operations and financial flexibility, the Corporation is very

well positioned to capitalize on the growth in the drugstore retail

industry. Demographic trends are expected to contribute to the growth

in prescription drugs' consumption and to the increased use of

pharmaceuticals as the primary intervention in individual healthcare.

Management believes that these trends will continue and that the

Corporation will maintain its growth in sales through differentiation

and quality of offering and service levels to its network of

franchised stores, with a focus on sales growth, its real estate

program and operating efficiency. The growth in the number of generic

drugs' prescriptions, with lower selling prices than the branded

drugs, will however have a deflationary impact on retail sales in the

pharmacy section but our integration in generic drugs with Pro Doc

will have a positive impact on the consolidated margins.

Conference call

Financial analysts and investors are invited to attend the first

quarter of fiscal year 2013 results conference call to be held on July

10, 2012, at 8:30 AM (ET). The call-in number is 514-861-2255 or toll

free at 1-877-405-9213, access code 3301554 followed by pound sign

(#). Media and other interested individuals are invited to listen to

the live or deferred broadcast on The Jean Coutu Group corporate

website at www.jeancoutu.com. A full replay will also be available by

dialling 514-861-2272 or toll free at 1-800-408-3053 until August 10,

2012. The access code is 9513326, followed by pound sign (#).

Supporting documentation (Management's discussion and analysis and

investor presentation) is available at

www.jeancoutu.com(www.jeancoutu.com) using the investors' link.

Readers may also access additional information and filings related to

the Corporation using the following link to the

www.sedar.com(www.sedar.com) website.

About The Jean Coutu Group

The Jean Coutu Group is one of the most trusted names in Canadian

pharmacy retailing. The Corporation operates a network of 400

franchised stores located in the provinces of Quebec, New Brunswick

and Ontario under the banners of PJC Jean Coutu, PJC Clinique, PJC

Sante and PJC Sante Beaute, and employs close to 19,000 people.

Furthermore, the Jean Coutu Group owns Pro Doc Ltd ("Pro Doc"), a

Quebec-based subsidiary and manufacturer of generic drugs. The

Corporation also holds an investment in Rite Aid Corporation ("Rite

Aid") a national chain of drugstores in the United States with more

than 4,600 drugstores in 31 states and the District of Columbia.

This press release contains forward-looking statements that involve

risks and uncertainties, and which are based on the Corporation's

current expectations, estimates, projections and assumptions made by

the Jean Coutu Group in light of its experience and its perception of

historical trends. All statements that address expectations or

projections about the future, including statements about the

Corporation's strategy for growth, costs, operating or financial

results, are forward-looking statements. All statements other than

statements of historical facts included in this MD&A, including

statements regarding the prospects of the Corporation's industry and

the Corporation's prospects, plans, financial position and business

strategy may constitute forward-looking statements within the meaning

of the Canadian securities legislation and regulations. Some of the

forward-looking statements may be identified by the use of

forward-looking terminology such as "may", "will", "expect", "intend",

"estimate", "project", "could", "anticipate", "plan", "foresee",

"believe" or "continue", the negatives of these terms, the variations

of them or the use of other similar terms. Although the Corporation

believes that the expectations reflected in these forward-looking

statements are reasonable, it can give no assurance that these

expectations will prove to have been correct. These statements are not

guarantees of future performance and involve a number of risks,

uncertainties and assumptions. These statements do not reflect the

potential impact of any non-recurring items or of any mergers,

acquisitions, dispositions, asset write-downs or other transactions or

charges that may be announced or that may occur after the date hereof.

While the list below of cautionary statements is not exhaustive, some

important factors that could affect our future operating results,

financial position and cash flows and could cause our actual results

to differ materially from those expressed in these forward-looking

statements, namely changes in the legislation or the regulatory

environment as it relates to the sale of prescription drugs and the

pharmacy exercise, the success of the Corporation's business model,

changes in laws and regulations, or in their interpretations, changes

to tax regulations and accounting pronouncements, the cyclical and

seasonal variations in the industry in which we operate, the intensity

of competitive activity in the industry in which we operate, the

supplier and brand reputations, our equity interest in Rite Aid, our

ability to attract and retain pharmacists, labour disruptions,

including possibly strikes and labour protests, the accuracy of

management's assumptions and other factors that are beyond our

control.

These and other factors could cause our actual performance and

financial results in future periods to differ materially from any

estimates or projections of future performance or results expressed or

implied by such forward-looking statements. Investors and others are

cautioned that undue reliance should not be placed on any

forward-looking statements. For more information on the risks,

uncertainties and assumptions that would cause the Corporation's

actual results to differ from current expectations, please also refer

to the Corporation's public filings available at

www.sedar.com(www.sedar.com) and www.jeancoutu.com. In particular,

further details and descriptions of these and other factors are

disclosed in the Corporation's Annual Information Form under "Risk

Factors" as well as in the "Critical Accounting Estimates", the "Risks

and uncertainties" and the "Strategies and outlook" sections of the

MD&A for the fiscal year ended March 3, 2012. We expressly disclaim

any obligation or intention to update or revise any forward-looking

statements, whether as a result of new information, future events or

any other reason, unless required by the applicable securities laws.

THE JEAN COUTU GROUP (PJC) INC.

Condensed consolidated statements of income 13 weeks

For the periods ended June 2, 2012 and May 28,

2011 2012 2011

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(unaudited, in millions of Canadian dollars,

unless otherwise noted) $ $

Sales 613.7 593.9

Other revenues 67.8 66.7

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681.5 660.6

Operating expenses

Cost of sales 539.9 526.2

General and operating expenses 62.2 57.3

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Operating income before depreciation and

amortization 79.4 77.1

Depreciation and amortization 7.8 7.4

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Operating income 71.6 69.7

Financing expenses 2.9 0.5

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Profit before the following items 68.7 69.2

Gains on sales of investment in Rite Aid 82.8 -

Unrealized gain related to the investment in

Rite Aid 265.2 -

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Profit before income taxes 416.7 69.2

Income taxes 19.3 19.3

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Net profit 397.4 49.9

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Basic and diluted profit per share, in dollars 1.81 0.22

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Condensed consolidated statements of

comprehensive income 13 weeks

For the periods ended June 2, 2012 and May 28,

2011 2012 2011

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(unaudited, in millions of Canadian dollars) $ $

Net profit 397.4 49.9

Other comprehensive income

Available-for-sale financial asset:

Change in fair value of investment in Rite

Aid (39.0) -

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(39.0) -

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Total comprehensive income 358.4 49.9

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