Workflow
Walgreens Boots Alliance(WBA) - 2025 Q1 - Quarterly Results
WBAWalgreens Boots Alliance(WBA)2025-01-10 12:15

Financial Performance - First quarter loss per share was 0.31,comparedto0.31, compared to 0.08 in the year-ago quarter, with adjusted EPS decreasing by 23.4% to 0.51[2]−NetlossattributabletoWalgreensBootsAlliance,Inc.(GAAP)was0.51[2] - Net loss attributable to Walgreens Boots Alliance, Inc. (GAAP) was 265 million for Q1 2024, compared to 67millioninQ12023[27]−AdjustednetearningsattributabletoWalgreensBootsAlliance,Inc.(Non−GAAP)were67 million in Q1 2023[27] - Adjusted net earnings attributable to Walgreens Boots Alliance, Inc. (Non-GAAP) were 440 million for Q1 2024, down from 571millioninQ12023[27]−Dilutednetlosspercommonshare(GAAP)was571 million in Q1 2023[27] - Diluted net loss per common share (GAAP) was 0.31 in Q1 2024, compared to 0.08inQ12023[27]−Adjusteddilutednetearningspercommonshare(Non−GAAP)were0.08 in Q1 2023[27] - Adjusted diluted net earnings per common share (Non-GAAP) were 0.51 in Q1 2024, down from 0.66inQ12023[27]−NetlossforthethreemonthsendedNovember30,2024,was0.66 in Q1 2023[27] - Net loss for the three months ended November 30, 2024, was 605 million, compared to 278millioninthesameperiodin2023[56]−Firstquarteroperatinglosswas278 million in the same period in 2023[56] - First quarter operating loss was 245 million compared to an operating loss of 39millionintheyear−agoquarter[44]−Netlossinthefirstquarterwas39 million in the year-ago quarter[44] - Net loss in the first quarter was 265 million compared to a net loss of 67millionintheyear−agoquarter[45]−Adjustedearningspershare(EPS)was67 million in the year-ago quarter[45] - Adjusted earnings per share (EPS) was 0.51 versus 0.66intheyear−agoquarter[42]SalesandRevenue−Firstquartersalesincreasedby7.50.66 in the year-ago quarter[42] Sales and Revenue - First quarter sales increased by 7.5% to 39.5 billion, with growth across all business segments[17] - Total sales for the three months ended November 30, 2024, were 39.459billion,withU.S.RetailPharmacycontributing39.459 billion, with U.S. Retail Pharmacy contributing 30.866 billion, International 6.425billion,andU.S.Healthcare6.425 billion, and U.S. Healthcare 2.172 billion[31] - Total sales for the three months ended November 30, 2023, were 36.707billion,withU.S.RetailPharmacycontributing36.707 billion, with U.S. Retail Pharmacy contributing 28.944 billion, International 5.832billion,andU.S.Healthcare5.832 billion, and U.S. Healthcare 1.931 billion[33] - First quarter sales increased 7.5% year-over-year to 39.5billion,up6.939.5 billion, up 6.9% on a constant currency basis[42] - U.S. Retail Pharmacy segment sales increased 6.6% to 30.9 billion, with comparable sales up 8.5%[46] - International segment sales increased 10.2% to 6.4billion,withafavorablecurrencyimpactof3.66.4 billion, with a favorable currency impact of 3.6%[47] - U.S. Healthcare segment sales grew to 2.2 billion, with VillageMD sales up 9%, CareCentrix up 16%, and Shields up 30%[48] Pharmacy and Prescription Performance - Pharmacy sales increased by 10.4%, with comparable pharmacy sales up 12.7%, driven by higher branded drug inflation and prescription volume[3] - Total prescriptions filled in the quarter increased by 1.5% to 316.3 million, with comparable prescriptions excluding immunizations up 3.5%[3] - Boots UK comparable pharmacy sales increased by 10.9%, and retail sales grew by 8.1%, with Boots.com sales up 30%[4] Operating Income and EBITDA - Operating loss improved to 325millionfrom325 million from 436 million in the prior year, with adjusted operating income turning positive at 25million[5]−AdjustedEBITDAimprovedby25 million[5] - Adjusted EBITDA improved by 109 million to 70million,drivenbygrowthinVillageMDandShields[5]−Adjustedoperatingincomeincreasedby17.970 million, driven by growth in VillageMD and Shields[5] - Adjusted operating income increased by 17.9% to 168 million, led by strong retail performance in Boots UK and growth in Germany[20] - Adjusted operating income for the three months ended November 30, 2024, was 593million,withU.S.RetailPharmacycontributing593 million, with U.S. Retail Pharmacy contributing 441 million, International 168million,andU.S.Healthcare168 million, and U.S. Healthcare 25 million[31] - Adjusted operating income for the three months ended November 30, 2023, was 687million,withU.S.RetailPharmacycontributing687 million, with U.S. Retail Pharmacy contributing 694 million, International 142million,andU.S.Healthcarealossof142 million, and U.S. Healthcare a loss of 96 million[33] - Adjusted EBITDA for the U.S. Healthcare segment improved to 70millioninQ32024,comparedtoalossof70 million in Q3 2024, compared to a loss of 39 million in the same period last year[35] Cash Flow and Financial Position - Net cash used for operating activities improved by 141millionto141 million to 140 million, with free cash flow improving by 363milliontonegative363 million to negative 424 million[18] - Free cash flow was (424)millioncomparedto(424) million compared to (788) million in the year-ago quarter[39] - Net cash used for operating activities decreased to 140millionin2024from140 million in 2024 from 281 million in 2023[56] - Additions to property, plant, and equipment decreased to 284millionin2024from284 million in 2024 from 506 million in 2023[56] - Proceeds from debt were 3.229billionin2024,comparedto3.229 billion in 2024, compared to 3.826 billion in 2023[56] - Payments of debt increased to 4.679billionin2024from4.679 billion in 2024 from 3.776 billion in 2023[56] - Net cash used for financing activities was 1.685billionin2024,comparedtonetcashprovidedbyfinancingactivitiesof1.685 billion in 2024, compared to net cash provided by financing activities of 186 million in 2023[56] - Net decrease in cash, cash equivalents, and restricted cash was 1.910billionin2024,comparedto1.910 billion in 2024, compared to 10 million in 2023[56] Retail Performance - Retail sales decreased by 6.2%, with comparable retail sales down 4.6%, due to a weaker cough cold flu season and lower discretionary sales[19] - Boots UK comparable pharmacy sales increased by 10.9%, and retail sales grew by 8.1%, with Boots.com sales up 30%[4] Adjustments and Non-GAAP Measures - Total adjustments to operating loss were 838millioninQ12024,upfrom838 million in Q1 2024, up from 726 million in Q1 2023[27] - Footprint optimization charges were 333millioninQ12024,primarilyrelatedtorestructuringactivities[27][28]−Acquisition−relatedamortizationwas333 million in Q1 2024, primarily related to restructuring activities[27][28] - Acquisition-related amortization was 269 million in Q1 2024, compared to 275millioninQ12023[27][28]−Lossoncertainnon−hedgingderivativeswas275 million in Q1 2023[27][28] - Loss on certain non-hedging derivatives was 200 million in Q1 2024, down from 366millioninQ12023[27]−VillageMDdebtamendmentresultedina366 million in Q1 2023[27] - VillageMD debt amendment resulted in a 137 million pre-tax non-controlling interest benefit in Q1 2024[27][30] - The company does not provide a reconciliation for non-GAAP estimates to GAAP financial measures on a forward-looking basis due to inherent difficulties in forecasting[58] - Comparable sales, pharmacy sales, and retail sales for the International segment are presented on a constant currency basis, a non-GAAP financial measure[60] Gross Profit and Margins - Adjusted gross profit for the same period was 6.812billion,withU.S.RetailPharmacyat6.812 billion, with U.S. Retail Pharmacy at 5.251 billion, International at 1.303billion,andU.S.Healthcareat1.303 billion, and U.S. Healthcare at 253 million[31] - Adjusted gross profit for the three months ended November 30, 2023, was 6.850billion,withU.S.RetailPharmacyat6.850 billion, with U.S. Retail Pharmacy at 5.493 billion, International at 1.211billion,andU.S.Healthcareat1.211 billion, and U.S. Healthcare at 146 million[33] - Gross margin (GAAP) for U.S. Retail Pharmacy was 17.0%, International 20.3%, and U.S. Healthcare 11.0% for the three months ended November 30, 2024[31] - Gross margin (GAAP) for U.S. Retail Pharmacy was 18.8%, International 20.8%, and U.S. Healthcare 6.5% for the three months ended November 30, 2023[33] - Adjusted operating margin (Non-GAAP) for the three months ended November 30, 2024, was 1.2% for U.S. Retail Pharmacy, 2.6% for International, and 1.2% for U.S. Healthcare[31] Other Financial Metrics - Weighted average common shares outstanding, diluted were 865.6 million in Q1 2024, up from 864.0 million in Q1 2023[27] - Adjusted effective tax rate excluding adjusted equity earnings (loss) in Cencora was 28.0% compared to 24.7% in the year-ago quarter[38] - Equity earnings (loss) in Cencora (GAAP) was (9)millioncomparedto(9) million compared to 42 million in the year-ago quarter[37] - Depreciation and amortization expenses increased to 625millionin2024from625 million in 2024 from 616 million in 2023[56]