Walgreens Boots Alliance, Inc. (NASDAQ: WBA) has reported its fiscal 2024 first-quarter results, with the company's stock experiencing a -6.6% movement and now trading at $23.89 per share. The company announced a first-quarter loss per share of $0.08 compared to a loss per share of $4.31 in the year-ago quarter. This quarter's results included a $278 million after-tax charge for fair value adjustments on variable prepaid forward derivatives related to the monetization of Cencora shares.
Adjusted earnings per share (EPS) decreased by 43.1% to $0.66, down 43.7% on a constant currency basis, reflecting challenging retail market trends in the U.S. and a 21 percentage point headwind from a higher tax rate. First-quarter sales increased by 10.0% year-over-year to $36.7 billion, up 8.7% on a constant currency basis.
The company's Chief Executive Officer, Tim Wentworth, stated, "WBA delivered fiscal first-quarter results in line with overall expectations, reflecting disciplined execution in a challenging consumer backdrop. We are evaluating all strategic options to drive sustainable long-term shareholder value, focusing on swift actions to right-size costs and increase cash flow, with a balanced approach to capital allocation priorities."
Despite the challenging environment, Walgreens Boots Alliance is maintaining fiscal 2024 adjusted EPS guidance of $3.20 to $3.50. This guidance accounts for underlying earnings growth being more than offset by lower sale and leaseback contribution, a higher tax rate, and lower COVID-19 contribution.
In terms of financial performance, the first-quarter sales increased by 10.0% to $36.7 billion, with an increase of 8.7% on a constant currency basis. The U.S. retail pharmacy segment saw an increase in sales to $28.9 billion, up by 6.4% from the year-ago quarter, while the international segment reported first-quarter sales of $5.8 billion, reflecting a 12.4% increase from the year-ago quarter.
Furthermore, the U.S. healthcare segment reported a first-quarter sales figure of $1.9 billion, reflecting the acquisition of Summit Health by VillageMD and growth in all businesses compared to the year-ago quarter.
The company has announced a 48% reduction in quarterly dividend payment to $0.25 per share, while maintaining its competitive yield. Walgreens Boots Alliance is set to hold a conference call to discuss these results at 8:30 a.m. Eastern Time today, January 4, 2024.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $131,537 | $120,074 | $121,982 | $132,509 | $132,703 | $139,081 |
| Revenue Growth | n/a | -8.71% | 1.59% | 8.63% | 0.15% | 4.81% |
| Net Margins | 4% | 3% | 0% | 2% | 3% | -2% |
| Net Income (MM) | $5,024 | $3,982 | $456 | $2,542 | $4,337 | -$3,080 |
| Net Interest Expense (MM) | $616 | $650 | $613 | $905 | $400 | $580 |
| Depreciation & Amort. (MM) | $1,770 | $2,038 | $1,927 | $1,973 | $1,990 | $2,257 |
| Earnings Per Share | $5.05 | $4.31 | $0.52 | $2.93 | $5.01 | $863.2 |
| Diluted Shares (MM) | 951 | 893 | 865 | 868 | 864 | 863 |
| Free Cash Flow (MM) | $6,896 | $3,892 | $4,110 | $4,176 | $2,165 | $141 |
| Capital Expenditures (MM) | $1,367 | $1,702 | $1,374 | $1,379 | $1,734 | $2,117 |
| Current Ratio | 0.8 | 0.66 | 0.69 | 0.83 | 0.7 | 0.63 |
| Total Debt (MM) | $16,443 | $22,654 | $19,354 | $10,323 | $12,767 | $10,009 |
| Net Debt / EBITDA | 1.92 | 3.21 | 6.27 | 1.43 | 3.08 | 1.4 |
