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Walgreens
🇺🇸 NASDAQ:WBA
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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.

Total Revenue
$36.3B
Previous year: $34.3B
+5.7%
EPS
$1.22
Previous year: $1.37
-10.9%
Gross Profit
$7.14B
Previous year: $7.26B
-1.7%
Cash and Equivalents
$1.11B
Previous year: $811M
+37.0%
Free Cash Flow
$763M
Previous year: $674M
+13.2%
Total Assets
$89.2B
Previous year: $90.8B
-1.8%

Walgreens

Walgreens

Walgreens Revenue by Segment

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

Company Overview

Full financial data and analysis

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