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Walgreens
🇺🇸 NASDAQ:WBA
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Aug 31, 2022

Walgreens Q4 2022 Earnings Report

Walgreens' Q4 2022 earnings exceeded expectations, with long-term targets raised for the U.S. Healthcare segment.

Key Takeaways

Walgreens Boots Alliance reported Q4 sales of $32.4 billion, a 5.3% decrease year-over-year. The company's loss per share was $0.48, while adjusted EPS decreased by 31.8% to $0.80. Despite these declines, Walgreens is raising its U.S. Healthcare fiscal 2025 sales target and expects low-teens adjusted EPS growth in fiscal year 2025 and beyond.

Q4 sales decreased by 5.3% year-over-year to $32.4 billion.

Loss per share from continuing operations was $0.48, a decrease of $0.89 from the year-ago quarter.

Adjusted EPS decreased 31.8% to $0.80, down 30.0% on a constant currency basis.

Raising U.S. Healthcare fiscal 2025 sales target to $11 billion to $12 billion, with the segment expected to achieve positive adjusted EBITDA by fiscal year 2024.

Total Revenue
$32.4B
Previous year: $34.3B
-5.3%
EPS
$0.8
Previous year: $1.17
-31.6%
Gross Profit
$6.41B
Previous year: $7.5B
-14.6%
Cash and Equivalents
$1.36B
Previous year: $1.19B
+13.8%
Free Cash Flow
-$407M
Previous year: $867M
-146.9%
Total Assets
$90.1B
Previous year: $81.3B
+10.9%

Walgreens

Walgreens

Walgreens Revenue by Segment

Walgreens Revenue by Geographic Location

Forward Guidance

Walgreens Boots Alliance expects an adjusted EPS of $4.45 to $4.65 for the full fiscal year 2023. The company is also raising the U.S. Healthcare fiscal year 2025 sales target to $11 billion to $12 billion.

Positive Outlook

  • Healthy core business growth of 8 to 10 percent in constant currency
  • Raising U.S. Healthcare fiscal year 2025 sales target to $11 billion to $12 billion
  • The U.S. Healthcare segment is expected to achieve positive adjusted EBITDA by fiscal year 2024.
  • Reconfirmed expectation to achieve low-teens adjusted EPS growth in fiscal year 2025.
  • Management will provide additional details during the earnings call presentation.

Challenges Ahead

  • Adverse currency movements of approximately 2 percent
  • Headwind of 15 to 17 percent from lower COVID-19 vaccination volumes.
  • Operating loss in the quarter reflects a $783 million non-cash impairment charge related to intangible assets in Boots UK.
  • Operating loss in the quarter reflects higher costs related to the Transformational Cost Management Program.
  • Adjusted operating income from continuing operations was $744 million, a decrease of 38.2 percent on a constant currency basis, reflecting lower U.S. pharmacy operating results as it lapped higher volumes of prior year COVID-19 vaccinations, and growth investments in U.S. Healthcare

Company Overview

Full financial data and analysis

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