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Nov 30, 2020
Walgreens Q1 2021 Earnings Report
Walgreens' first quarter results surpassed expectations with a focus on healthcare and omnichannel investments, despite a loss per share due to charges from equity earnings in AmerisourceBergen.
Key Takeaways
Walgreens Boots Alliance reported a 5.7% increase in sales to $36.3 billion for the first quarter of fiscal 2021. However, the company experienced a loss per share of $0.36, primarily due to a $1.73 per share charge from its equity earnings in AmerisourceBergen. Adjusted EPS decreased by 11.2% to $1.22. The company maintained its guidance of low single-digit growth in adjusted earnings per share for fiscal 2021.
Sales increased by 5.7 percent to $36.3 billion.
Loss per share was $0.36, impacted by a charge from AmerisourceBergen.
Adjusted EPS decreased 11.2 percent to $1.22.
Company maintained guidance of low single-digit growth in adjusted EPS for fiscal 2021.
Walgreens
Walgreens
Walgreens Revenue by Segment
Revenue by Segment
U.S. Pharmacy Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
The company maintained fiscal 2021 guidance of low single-digit growth in adjusted earnings per share at constant currency rates.
Positive Outlook
- The first quarter exceeded expectations, reflecting strength in Boots UK and Boots Opticians.
- Company maintained guidance of low single-digit growth in adjusted earnings per share at constant currency rates.
- Walgreens pharmacists are playing a key, expanded role in fighting the COVID-19 pandemic.
- Walgreens launched myWalgreens, a complete reinvention of its customer loyalty program.
- Boots.com significantly expanded capacity and sales doubled from the year-ago quarter, outperforming the market.
Challenges Ahead
- The second quarter is expected to see higher adverse impacts from COVID-19 (including the weaker cough, cold and flu season).
- Opportunity from the distribution of vaccinations is likely to be offset by COVID-19 related lock-downs and restrictions.
- Opportunity from the distribution of vaccinations is likely to be offset by increased growth investments.
- COVID-19 continued to impact footfall, particularly in major high street, train station and airport stores.
- Boots UK market share was lower in all categories except beauty, as the pandemic continued to impact heavily on buying habits and consumers temporarily shifted purchasing to one-stop grocery shopping.
Revenue & Expenses
Visualization of income flow from segment revenue to net income