04 April 2023

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Walgreens Boots Alliance reports Fiscal 2023 second quarter results

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Walgreens Boots Alliance announced financial results for the second quarter of the fiscal year on March 28, confirming full-year guidance despite a decline in earnings per share (EPS) and sales. Sales for the quarter increased 3.3% year over year to $34.9 billion, but adjusted EPS decreased 27.2% to $1.16, reflecting a 26% inverse trend due to the decline in COVID-19 vaccine and testing volumes. 

According to a news release, Walgreens Boots Alliance has invested $3.5 billion in VillageMD's acquisition of Summit Health to accelerate U.S. health care segment sales and improve profitability. The company also partially sold its stakes in AmerisourceBergen and Option Care Health for $1.5 billion in after-tax proceeds.

Investments in the healthcare segment and acquisitions

The company is maintaining its adjusted full-year earnings guidance of $4.45 to $4.65 as strong growth in the core business which is more than offset by the lag compared with peak COVID-19 demand for testing and vaccines, according to the news release. 

The company closed VillageMD's acquisition of Summit Health and signed on to Horizon Blue Cross Blue Shield of New Jersey as the fourth payor partner for Walgreens Health. As mentioned above, the company also sold its stakes in AmerisourceBergen and Option Care Health to optimize its capital allocation.

Consumer-centric healthcare

Walgreens Boots Alliance continues to transform and align its core business, addressing industry-wide pharmacist labor shortages and maintaining a leading role in COVID-19 vaccinations and testing. The company is also building its next growth engine with consumer-centric healthcare solutions and focusing its portfolio to optimize capital allocation. In addition, the company named new senior vice presidents and directors for pharmacy and retail, and launched its fiscal 2022 Environmental, Social and Governance Report.

Solid second quarter with an acceleration in February

CEO Rosalind Brewer said in the news release that the company "exited a solid second quarter with acceleration in February, adding to our confidence in driving strong growth in the second half of the year. With the closing of VillageMD's acquisition of Summit Health, WBA is now one of the largest players in primary care, with best-in-class assets across the care continuum. Both Walgreens and Boots are performing well by delivering compelling value to consumers, playing a critical role as community health destinations, and successfully navigating a challenging environment. We will continue to take bold actions to create sustainable long-term shareholder value."

Read more details in the company's news release: https://www.walgreensbootsalliance.com/news-media/press-releases/2023/walgreens-boots-alliance-reports-fiscal-2023-second-quarter-results