Cencora, Inc. Acquires Retina Consultants of America

By Tamara Parker • Wednesday, February 05 15:24 • Permanent Link

Cencora, Inc. has recently released its 10-Q report, providing insights into the company's financial performance and operations. Cencora, Inc. is a pharmaceutical sourcing and distribution company based in the United States, with international operations. The company's U.S. Healthcare Solutions segment distributes a wide range of pharmaceuticals, over-the-counter healthcare products, and related services to various healthcare providers, while its International Healthcare Solutions segment provides pharmaceutical wholesale and related services globally.

The report highlights a significant recent development, with Cencora, Inc. acquiring an 85% interest in Retina Consultants of America for $4.4 billion. Additionally, the report outlines the company's financial performance, indicating a 12.8% increase in revenue, totaling $81.5 billion for the three months ended December 31, 2024. This growth was primarily driven by a 13.6% increase in revenue from the U.S. Healthcare Solutions segment, with notable sales increases in products labeled for diabetes and/or weight loss in the GLP-1 class, and specialty products to physician practices and health systems.

Gross profit increased by 3.6% to $2.6 billion, with the U.S. Healthcare Solutions segment contributing a 7.2% increase in gross profit, while the International Healthcare Solutions segment saw a 4.0% increase. However, total operating expenses increased by 12.5% from the prior year quarter, primarily due to litigation and opioid-related expenses, distribution, selling, and administrative expenses to support business growth.

The company reported a 7.2% increase in total segment operating income, with the U.S. Healthcare Solutions segment's operating income growing by 9.9%, while the International Healthcare Solutions segment's operating income decreased by 2.9%. Notably, Cencora, Inc. recognized a $35.5 million loss on the divestiture of non-core businesses during the period.

Interest expense, net decreased by 31.1% from the prior year quarter, primarily due to an increase in interest income, driven by higher average investment cash balances and higher investment interest rates outside the United States.

Today the company's shares have moved 0.3% to a price of $252.4. For the full picture, make sure to review Cencora's 10-Q report.

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