NYSE-listed China Nepstar Chain Drugstore has announced a same store sales increase of 13.6 per cent for the first quarter.

Total revenue increased by 11.9 per cent to RMB759.1 million, or US$122.5 million and it posted a loss of $500,000, just one fifth of that of the same period last year.

Chairman Simin Zhang said the improved performance was the result of reducing administrative expenses, leveraging its store network and increasing in-store promotions and marketing efforts for pharmaceutical products.

During the first quarter of 2015, China Nepstar opened 26 new stores and closed 37, leaving it with 1969 directly operated retail stores as at March 31.

The company expanded its private label range to 2146 types of products as at March 31, with sales of private label products now representing 15.4 per cent of total revenue and 22.7 per cent of gross profit.

Zhang said the company is excited by the momentum in its business development in the first quarter of 2015.

“We will continue to focus on maintaining growth, managing expenses and improving margins.  We believe that our strong store network, optimised product offerings and proactive steps to improve customer experience and loyalty, will continue to drive store traffic and revenue in the near term,” said Zhang.

Based on store numbers, China Nepstar Chain Drugstore is one of China’s largest retail drugstores with outlets in 74 cities and 15 regional distribution centres.