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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.
Walgreens
Walgreens
Walgreens Revenue by Segment
Revenue by Segment
U.S. Pharmacy Revenue
CapyFin.comInternational Revenue
CapyFin.com 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