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Nov 30, 2024

Walgreens Q1 2025 Earnings Report

Walgreens reported Q1 2025 results, showing sales increase but a loss per share, with adjusted EPS impacted by lower U.S. retail sales and prior year gains, offset by cost savings and U.S. Healthcare growth; maintained full year adjusted EPS guidance.

Key Takeaways

Walgreens Boots Alliance reported a 7.5% increase in sales to $39.5 billion for the first quarter of fiscal year 2025. However, the company experienced a loss per share of $0.31, although adjusted EPS was $0.51. The company is maintaining its fiscal year 2025 adjusted EPS guidance of $1.40 to $1.80.

First quarter sales increased 7.5% year-over-year to $39.5 billion.

Loss per share was $0.31, including costs related to the Footprint Optimization Program.

Adjusted EPS was $0.51, driven by lower U.S. retail sales and prior year sale-leaseback gains, partly offset by cost savings and growth in U.S. Healthcare.

Fiscal 2025 adjusted EPS guidance maintained at $1.40 to $1.80.

Total Revenue
$39.5B
Previous year: $36.7B
+7.5%
EPS
$0.51
Previous year: $0.66
-22.7%
Gross Profit
$6.78B
Previous year: $6.77B
+0.1%
Cash and Equivalents
$859M
Previous year: $784M
+9.6%
Free Cash Flow
-$424M
Previous year: -$788M
-46.2%
Total Assets
$78.5B
Previous year: $97.8B
-19.7%

Walgreens

Walgreens

Walgreens Revenue by Segment

Forward Guidance

Walgreens is maintaining its fiscal year 2025 adjusted EPS guidance of $1.40 to $1.80.

Positive Outlook

  • Growth in U.S. Healthcare
  • Growth in International
  • Disciplined execution against 2025 priorities
  • Optimizing footprint
  • Controlling operating costs

Challenges Ahead

  • Decline in U.S. Retail Pharmacy
  • Higher adjusted effective tax rate
  • Lower contributions from sale-leaseback
  • Lower Cencora earnings
  • Turnaround will take time

Revenue & Expenses

Visualization of income flow from segment revenue to net income