Workflow
McKesson(MCK) - 2025 Q1 - Quarterly Results
MCKMcKesson(MCK)2024-08-07 20:05

Financial Performance - Consolidated revenues for the first quarter were 79.3billion,anincreaseof679.3 billion, an increase of 6% compared to the previous year[1] - Adjusted Earnings per Diluted Share for the first quarter was 7.88, reflecting an 8% increase from 7.27intheprioryear[4]−Thecompanyraiseditsfiscal2025AdjustedEarningsperDilutedShareguidancetoarangeof7.27 in the prior year[4] - The company raised its fiscal 2025 Adjusted Earnings per Diluted Share guidance to a range of 31.75 to 32.55,indicatingagrowthof1632.55, indicating a growth of 16% to 19% compared to the prior year[2] - Revenues for the three months ended June 2024 were 79,283 million, a 6% increase from 74,483millioninthesameperiodlastyear[20]−Grossprofitincreasedby474,483 million in the same period last year[20] - Gross profit increased by 4% to 3,152 million compared to 3,022millionintheprioryear[20]−Adjustedearningsperdilutedshareincreasedby83,022 million in the prior year[20] - Adjusted earnings per diluted share increased by 8% to 7.88 from 7.27[23]−AdjustedgrossprofitforthethreemonthsendedJune2024was7.27[23] - Adjusted gross profit for the three months ended June 2024 was 3,060 million, a 4% increase from 2,936millioninthesameperiodlastyear[26]−Totalrevenuesforthequarterreached2,936 million in the same period last year[26] - Total revenues for the quarter reached 79,283 million, reflecting a 6% increase from 74,483millionyear−over−year[29]−Netincomeforthequarterwas74,483 million year-over-year[29] - Net income for the quarter was 960 million, a decrease from 997millionintheprioryear[33]SegmentPerformance−TheU.S.Pharmaceuticalsegmentgeneratedrevenuesof997 million in the prior year[33] Segment Performance - The U.S. Pharmaceutical segment generated revenues of 71.7 billion, a 7% increase driven by higher prescription volumes, including specialty products and GLP-1 medications[7] - The Medical-Surgical Solutions segment reported revenues of 2.6billion,a12.6 billion, a 1% increase, despite challenges in customer mix and product demand shifts[9] - The International segment achieved revenues of 3.7 billion, a 6% increase, attributed to higher pharmaceutical distribution volumes in Canada[10] - U.S. Pharmaceutical revenues increased by 7% to 71,715millioncomparedto71,715 million compared to 67,160 million in the previous year[29] - Operating profit for U.S. Pharmaceutical segment was 781million,down6781 million, down 6% from 827 million in the same quarter last year[29] - The Prescription Technology Solutions segment's revenues were flat at 1.2billion,impactedbylowercontributionsfromthird−partylogistics[8]ShareholderReturns−TheBoardapproveda151.2 billion, impacted by lower contributions from third-party logistics[8] Shareholder Returns - The Board approved a 15% increase in the quarterly dividend to 0.71 per share, marking the eighth consecutive year of dividend increases[1] - The company returned 609milliontoshareholdersinthefirstquarter,including609 million to shareholders in the first quarter, including 527 million in stock repurchases and 82millionindividends[5]−Dividendsdeclaredpercommonshareincreasedby1582 million in dividends[5] - Dividends declared per common share increased by 15% to 0.62 from 0.54[20]CashFlowandExpenses−McKesson′scashfromoperationsforthefirstthreemonthswas0.54[20] Cash Flow and Expenses - McKesson's cash from operations for the first three months was 1.4 billion, resulting in negative Free Cash Flow of 1.5billionduetocapitalexpenditures[5]−Totaloperatingexpensesroseby101.5 billion due to capital expenditures[5] - Total operating expenses rose by 10% to 2,123 million, up from 1,922million[20]−NetcashusedinoperatingactivitiesforthethreemonthsendedJune30,2024,was1,922 million[20] - Net cash used in operating activities for the three months ended June 30, 2024, was (1,380) million, an increase of 31% compared to (1,052)millioninthesameperiodof2023[35]−FreeCashFlow(Non−GAAP)forthethreemonthsendedJune30,2024,was(1,052) million in the same period of 2023[35] - Free Cash Flow (Non-GAAP) for the three months ended June 30, 2024, was (1,547) million, reflecting a 32% increase from (1,176)millioninthesameperiodof2023[35]−Cashandcashequivalentsdecreasedto(1,176) million in the same period of 2023[35] - Cash and cash equivalents decreased to 2,302 million from 4,583millionattheendofthepreviousquarter[32]AssetsandLiabilities−Totalassetsincreasedto4,583 million at the end of the previous quarter[32] Assets and Liabilities - Total assets increased to 71,670 million from 67,443millionattheendofthepreviousquarter[32]−Totalcurrentliabilitiesroseto67,443 million at the end of the previous quarter[32] - Total current liabilities rose to 56,434 million from 52,357millioninthepreviousquarter[32]−Thecompany’slong−termdebtremainedstableat52,357 million in the previous quarter[32] - The company’s long-term debt remained stable at 5,584 million, slightly up from 5,579million[32]OtherFinancialMetrics−NetincomeattributabletoMcKessonCorporationdecreasedby45,579 million[32] Other Financial Metrics - Net income attributable to McKesson Corporation decreased by 4% to 915 million from 958millionyear−over−year[20]−Dilutedearningspershareremainedstableat958 million year-over-year[20] - Diluted earnings per share remained stable at 7.00, compared to 7.02inthepreviousyear[20]−Otherincomeincreasedsignificantlyby2427.02 in the previous year[20] - Other income increased significantly by 242% to 130 million from 38million[20]−Interestexpenseincreasedby6038 million[20] - Interest expense increased by 60% to 75 million compared to 47millionintheprioryear[20]−Thecompanyrecognizedapre−taxnetgainof47 million in the prior year[20] - The company recognized a pre-tax net gain of 97 million related to a recapitalization event of one of its investments in equity securities[39] Charges and Expenditures - Claims and litigation charges for the three months ended June 30, 2024, included pre-tax charges of 114millionrelatedtoopioid−relatedclaims[38]−Restructuring,impairment,andrelatedchargesforthethreemonthsendedJune30,2024,amountedto114 million related to opioid-related claims[38] - Restructuring, impairment, and related charges for the three months ended June 30, 2024, amounted to 10 million, down from 52millioninthesameperiodof2023[37]−Paymentsforproperty,plant,andequipmentincreasedby3652 million in the same period of 2023[37] - Payments for property, plant, and equipment increased by 36%, from (78) million in 2023 to (106)millionin2024[35]−Capitalizedsoftwareexpendituresroseby33(106) million in 2024[35] - Capitalized software expenditures rose by 33%, from (46) million in 2023 to $(61) million in 2024[35]