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Feb 29, 2024
Walgreens Q2 2024 Earnings Report
Walgreens reported a mixed second quarter with sales growth offset by a net loss due to impairment charges, while adjusted EPS increased slightly.
Key Takeaways
Walgreens Boots Alliance (WBA) announced its fiscal 2024 second quarter results, revealing a 6.3% increase in sales to $37.1 billion, but a net loss of $5.9 billion due to a $5.8 billion after-tax non-cash impairment charge related to VillageMD goodwill. Adjusted EPS increased by 3.4% to $1.20. The company narrowed its fiscal 2024 adjusted EPS guidance to $3.20 to $3.35.
Sales increased 6.3% year-over-year to $37.1 billion, or 5.7% on a constant currency basis.
Loss per share was $6.85, compared to earnings per share of $0.81 in the year-ago quarter, impacted by a $5.8 billion after-tax non-cash impairment charge.
Adjusted EPS increased 3.4% to $1.20, or 2.8% on a constant currency basis.
Fiscal 2024 adjusted EPS guidance narrowed to $3.20 to $3.35.
Walgreens
Walgreens
Walgreens Revenue by Segment
Revenue by Segment
U.S. Pharmacy Revenue
CapyFin.comInternational Revenue
CapyFin.comU.S. Healthcare Revenue
CapyFin.com Forward Guidance
Walgreens Boots Alliance narrowed its fiscal 2024 adjusted EPS guidance to $3.20 to $3.35, reflecting challenges in the retail environment, the early wind-down of the sale-leaseback program, and lower earnings due to Cencora share sales, offset by pharmacy services execution and a lower adjusted effective tax rate.
Positive Outlook
- Execution in pharmacy services is expected to offset some challenges.
- A lower adjusted effective tax rate is anticipated.
- U.S. Healthcare adjusted EBITDA is maintained to be breakeven at the midpoint of the guidance range.
- Company confident in goal of achieving $1 billion in cost savings this year.
- Team members are powering progress as we map growth opportunities.
Challenges Ahead
- Challenging retail environment in the U.S. is impacting performance.
- Early wind-down of the sale-leaseback program is creating headwinds.
- Lower earnings are expected due to Cencora share sales.
- Operating cash flow was negatively impacted by payments related to legal matters.
- Softer U.S. retail performance and lower sale-leaseback gains, partly offset by improved profitability in the U.S. Healthcare segment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income