Walgreens Boots Alliance, Inc. (NASDAQ: WBA) has reported its fiscal 2024 second quarter results, and the numbers show a mixed bag. The company's second quarter sales increased by 6.3 percent year-over-year to $37.1 billion, with a 5.7 percent increase on a constant currency basis. However, the second quarter loss per share was $6.85 compared to earnings per share of $0.81 in the year-ago quarter. This loss per share included a $5.8 billion after-tax non-cash impairment charge related to VillageMD goodwill. Adjusted earnings per share increased by 3.4 percent to $1.20, up 2.8 percent on a constant currency basis, reflecting a lower adjusted effective tax rate and improved profitability in the U.S. healthcare segment.
The company is narrowing its fiscal 2024 adjusted earnings per share guidance to $3.20 to $3.35, reflecting a challenging retail environment in the U.S., an early wind-down of the sale-leaseback program, and lower earnings due to Cencora share sales, offset by execution in pharmacy services and a lower adjusted effective tax rate.
In terms of segments, the U.S. retail pharmacy segment had second quarter sales of $28.9 billion, representing an increase of 4.7 percent from the year-ago quarter. Adjusted operating income decreased by 29.5 percent to $752 million compared to $1.1 billion in the year-ago quarter, reflecting lower retail sales, lower sale-leaseback gains, and higher shrink levels, partially offset by cost savings compared to the prior year quarter.
The international segment had second quarter sales of $6.0 billion, an increase of 6.6 percent from the year-ago quarter, including a favorable currency impact of 3.4 percent. Adjusted operating income decreased by 30.3 percent to $245 million, a decrease of 32.4 percent on a constant currency basis compared with the year-ago quarter, entirely due to lapping real estate gains in the year-ago period.
The U.S. healthcare segment had second quarter sales of $2.2 billion, an increase of 33.2 percent compared to the year-ago quarter, aided by the acquisition of Summit Health by VillageMD. The operating loss was $13.1 billion, due to the non-cash impairment charge related to VillageMD goodwill. Adjusted operating loss was $34 million compared to $159 million in the year-ago quarter.
Following these announcements, the company's shares moved -0.8%, and are now trading at a price of $20.84. For the full picture, make sure to review Walgreens Boots Alliance's 8-K report.
