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Nov 30, 2023

Walgreens Q1 2024 Earnings Report

Walgreens Q1 2024 results were reported, aligning with expectations amidst a challenging environment.

Key Takeaways

Walgreens Boots Alliance reported a 10.0% increase in sales to $36.7 billion, but experienced a net loss of $67 million and a decrease in adjusted EPS to $0.66. The company is maintaining its fiscal 2024 adjusted EPS guidance of $3.20 to $3.50.

First quarter loss per share was $0.08, compared to a loss per share of $4.31 in the year-ago quarter, which included a $278 million after-tax charge.

Adjusted EPS decreased 43.1 percent to $0.66, or 43.7 percent on a constant currency basis, due to challenging retail market trends in the U.S. and a higher tax rate.

First quarter sales increased 10.0 percent year-over-year to $36.7 billion, or 8.7 percent on a constant currency basis.

The company announced a 48 percent reduction in quarterly dividend payment to $0.25 per share.

Total Revenue
$36.7B
Previous year: $33.4B
+10.0%
EPS
$0.66
Previous year: $1.16
-43.1%
Gross Profit
$6.77B
Previous year: $6.95B
-2.6%
Cash and Equivalents
$784M
Previous year: $2.35B
-66.6%
Free Cash Flow
-$788M
Previous year: -$117M
+573.5%
Total Assets
$97.8B
Previous year: $92.9B
+5.3%

Walgreens

Walgreens

Walgreens Revenue by Segment

Forward Guidance

Walgreens is maintaining its fiscal 2024 adjusted EPS guidance of $3.20 to $3.50, with underlying earnings growth more than offset by lower sale and leaseback contribution, a higher tax rate, and lower COVID-19 contribution. They are also maintaining U.S. Healthcare adjusted EBITDA to be breakeven at the midpoint of the guidance range of ($50) million to $50 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income