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Aug 31, 2024

Walgreens Q4 2024 Earnings Report

Walgreens' Q4 2024 earnings met expectations, with the company announcing a footprint optimization program.

Key Takeaways

Walgreens Boots Alliance reported a 6.0% increase in fourth-quarter sales to $37.5 billion, but experienced a net loss of $3.0 billion, or $3.48 per share, compared to a net loss of $180 million, or $0.21 per share in the year-ago quarter. Adjusted EPS was $0.39, a 40.8% decrease on a constant currency basis. The company announced a footprint optimization program targeting approximately 1,200 closures over the next three years.

Fourth quarter sales increased 6.0% year-over-year to $37.5 billion, up 6.1% on a constant currency basis.

Adjusted earnings per share (Adjusted EPS) was $0.39, down 40.8 percent on a constant currency basis.

Net loss in the fourth quarter was $3.0 billion compared to a net loss of $180 million in the year-ago quarter.

Announcing footprint optimization program targeting approximately 1,200 closures over the next three years, including approximately 500 closures in fiscal 2025.

Total Revenue
$37.5B
Previous year: $35.4B
+6.0%
EPS
$0.39
Previous year: $0.67
-41.8%
Gross Profit
$6.25B
Previous year: $6.48B
-3.4%
Cash and Equivalents
$1.32B
Previous year: $728M
+81.2%
Free Cash Flow
$1.1B
Previous year: $549M
+100.4%
Total Assets
$81B
Previous year: $96.6B
-16.1%

Walgreens

Walgreens

Walgreens Revenue by Segment

Forward Guidance

Walgreens Boots Alliance expects adjusted EPS of $1.40 to $1.80 for fiscal year 2025.

Positive Outlook

  • Growth in U.S. Healthcare
  • Growth in International

Challenges Ahead

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

Revenue & Expenses

Visualization of income flow from segment revenue to net income