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Aug 31, 2023

Walgreens Q4 2023 Earnings Report

Walgreens' Q4 2023 performance was impacted by lower COVID-19 vaccine and testing volumes, but sales increased due to growth in U.S. Retail Pharmacy and International segments.

Key Takeaways

Walgreens Boots Alliance reported a Q4 sales increase of 9.2% year-over-year to $35.4 billion, but experienced a net loss of $180 million. Adjusted EPS was $0.67, down 18.0% on a constant currency basis. The company is implementing cost reduction measures and focusing on accelerating profitability in the U.S. Healthcare segment.

Fourth quarter sales increased 9.2% year-over-year to $35.4 billion, up 8.3% on a constant currency basis.

Fourth quarter loss per share was $0.21, while adjusted EPS was $0.67, down 18.0% on a constant currency basis.

The U.S. Retail Pharmacy segment had fourth quarter sales of $27.7 billion, an increase of 3.7% from the year-ago quarter.

The International segment had fourth quarter sales of $5.8 billion, an increase of 12.4% from the year-ago quarter.

Total Revenue
$35.4B
Previous year: $32.4B
+9.2%
EPS
$0.67
Previous year: $0.8
-16.3%
Gross Profit
$6.48B
Previous year: $6.41B
+1.0%
Cash and Equivalents
$728M
Previous year: $1.36B
-46.4%
Free Cash Flow
$549M
Previous year: -$407M
-234.9%
Total Assets
$96.6B
Previous year: $90.1B
+7.2%

Walgreens

Walgreens

Walgreens Revenue by Segment

Forward Guidance

Walgreens Boots Alliance expects adjusted EPS of $3.20 to $3.50 for fiscal year 2024, reflecting incremental cost savings and accelerating profitability in U.S. Healthcare, more than offset by lower sale and leaseback contribution, a higher tax rate, and lower COVID-19 contribution.

Positive Outlook

  • Incremental cost savings across the business
  • Accelerating profitability in U.S. Healthcare

Challenges Ahead

  • Lower sale and leaseback contribution
  • Higher tax rate
  • Lower COVID-19 contribution

Revenue & Expenses

Visualization of income flow from segment revenue to net income