RAD Rite Aid Corp

Rite Aid Corp. said despite a same-store sales decline, its fourth-quarter revenue rose 21% on its acquisition of a pharmacy-benefit manager.

The third-largest drugstore chain agreed to merge into No. 1 Walgreens Boots Alliance Inc. in a $17.2 billion agreement struck in late October. Accordingly, Rite Aid said it wouldn't provide guidance for its just started fiscal year. The company said it expects the deal, which is undergoing antitrust scrutiny, to close in the second half of the year.

In February 2015, Rite Aid agreed to buy pharmacy-benefit manager Envision Pharmaceutical Services for about $2 billion from investment firm TPG. Revenue from that segment now accounts for 18% of total revenue, and revenue in its retail pharmacy segment declined in the quarter from a year before.

The chain, like its rivals, has adjusted its offerings to broaden its business model as the pharmacy and drugstore industry expands into the health and wellness sector. Rite Aid has worked to expand its RediClinics and remodeled 89 wellness stores, which offer organic food and natural personal-care options and feature consultation rooms for discussions with pharmacists. It added three new clinics.

Same-store sales decreased 0.6% from last year, with a 0.8% decrease pharmacy sales and a 0.4% decrease in front-end sales. Pharmacy sales were dented by new generic introductions, but the number of prescriptions filled increased 0.1%.

Rite Aid reported a profit of $65.6 million, or 6 cents a share, down from $1.84 billion, or $1.79 cents a share, a year prior. The previous year's profit benefited from a $1.68 billion income-tax benefit. Excluding that and other items, adjusted earnings per share rose to 7 cents from 6 cents a year prior.

Revenue jumped 21% to $8.27 billion, but its retail pharmacy segment saw a 0.3% decline to $6.83 billion.

Analysts polled by Thomson Reuters had forecast earnings of 6 cents on $8.4 billion in revenue.

Shares, which have risen 4.1% over the last three months, increased 0.4% in light premarket trading.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

April 07, 2016 08:35 ET (12:35 GMT)

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