•
Nov 30, 2022

Walgreens Q1 2023 Earnings Report

Walgreens reported a decrease in sales and adjusted EPS, impacted by opioid litigation and lower COVID-19 vaccine volumes, while raising full-year sales guidance.

Key Takeaways

Walgreens Boots Alliance reported first quarter fiscal 2023 results with sales decreasing 1.5 percent year-over-year to $33.4 billion. Adjusted EPS decreased 30.8 percent to $1.16. The company is maintaining full-year adjusted EPS guidance and raising full-year sales guidance.

First quarter loss per share was $4.31, compared to earnings per share of $4.13 in the year-ago quarter, reflecting a $6.5 billion pre-tax charge for opioid litigation.

Adjusted EPS decreased 30.8 percent to $1.16, down 29.9 percent on a constant currency basis.

First quarter sales decreased 1.5 percent year-over-year to $33.4 billion, up 1.1 percent on a constant currency basis.

Full-year adjusted EPS guidance maintained at $4.45 to $4.65; full-year sales guidance raised to $133.5 billion to $137.5 billion.

Total Revenue
$33.4B
Previous year: $33.9B
-1.5%
EPS
$1.16
Previous year: $1.68
-31.0%
Gross Profit
$6.95B
Previous year: $7.58B
-8.2%
Cash and Equivalents
$2.35B
Previous year: $4.14B
-43.2%
Free Cash Flow
-$117M
Previous year: $645M
-118.1%
Total Assets
$92.9B
Previous year: $96.5B
-3.8%

Walgreens

Walgreens

Walgreens Revenue by Segment

Walgreens Revenue by Geographic Location

Forward Guidance

Walgreens is maintaining its full-year adjusted EPS guidance of $4.45 to $4.65 and raising its full-year sales guidance to $133.5 billion to $137.5 billion.

Positive Outlook

  • Strong core business growth
  • Summit Health acquisition
  • Refreshed currency rates
  • First quarter sales ahead of expectations
  • U.S. Healthcare targets raised with Summit Health announcement

Challenges Ahead

  • Lapping fiscal year 2022 COVID-19 execution
  • Currency headwinds