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Nov 30, 2019
Walgreens Q1 2020 Earnings Report
Walgreens reported a decrease in net earnings and maintained its full-year adjusted EPS guidance.
Key Takeaways
Walgreens Boots Alliance reported a 1.6% increase in sales to $34.3 billion, but experienced a 24.8% decrease in net earnings to $845 million and a 19.8% decrease in EPS to $0.95. The company maintained its guidance of roughly flat growth in fiscal 2020 adjusted EPS on a constant currency basis.
Sales increased 1.6 percent to $34.3 billion, up 2.3 percent on a constant currency basis.
Operating income decreased 27.6 percent to $1.0 billion; Adjusted operating income decreased 15.6 percent to $1.5 billion, down 15.4 percent on a constant currency basis.
EPS decreased 19.8 percent to $0.95; Adjusted EPS decreased 6.0 percent to $1.37, down 5.7 percent on a constant currency basis.
Net cash provided by operating activities was $1.1 billion, an increase of $601 million; Free cash flow was $674 million, an increase of $684 million.
Revenue by Segment
Forward Guidance
The company maintained guidance of roughly flat growth in fiscal 2020 adjusted earnings per share at constant currency rates, with a range of plus or minus 3 percent.
Positive Outlook
- On track to deliver in excess of $1.8 billion in annual cost savings by fiscal 2022
- WBA agreed to create German wholesale joint venture with McKesson
- Walgreens and Kroger formed a group purchasing organization
- Flagship No7 beauty brand saw sales growth in the mid teens in the U.S.
- Jenny Craig health and weight loss management on track to locate in approximately 100 Walgreens by the end of January
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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