Walgreen Boots Alliance (WBA), a recent addition to the Dow 30, is a pharmacy-led, health and wellbeing enterprise with a long history of trusted healthcare services, community pharmacy care, and pharmaceutical wholesaling dates.
Walgreens Boots Alliance, Inc. (WBA) declared its financial results for the third quarter of fiscal 2019 ending May 31, 2019, on June 27, 2019.
“Following a difficult second quarter, we made progress in the third quarter against the strategic goals we set, and are pleased to report an improvement in our U.S. comparable growth compared with the first half of the year. We will continue our aggressive response to rapidly shifting trends, and have already seen improved U.S. retail sales and prescription growth and are making good progress in implementing our Transformational Cost Management Program. Together, this gives us the confidence to reiterate the fiscal 2019 guidance we previously provided.” stated Executive Vice Chairman and CEO Stefano Pessina.
Company Analysis of Third Quarter Results
• Sales in the third quarter increased by 0.7 percent recording $34.6 billion due to growth in Pharmaceutical Wholesale divisions and the Retail Pharmacy USA.
• Operating Income was $1.2 billion, a decrease of 24.7 percent in comparison to the same quarter last year.
• Net cash of $2.0 billion was recorded in the third quarter with a free cash flow of $1.6 billion.
Company Synopsis of Fiscal 2019 Year-to-Date Results
• Net earnings decreased 5.9 percent to $3.3 billion, in comparison to the same period last year.
• Net earnings per share increased by 1.1 percent to $3.55.
• Sale of $102.9 billion in the first nine months of fiscal 2019 was recorded.
• For the first nine months, operating income declined by 15.8 percent at $4.1 billion in comparison for the same period a year ago.
Company Third Quarter Division Highlights
Retail Pharmacy USA: Third-Quarter Sales for the pharmacy was reported at $26.5 billion. Pharmacy sales which contribute for 73.9 percent of the division’s sales for the quarter stressed on higher brand inflation and prescription volume. Retail sales experienced fall by 2.9 percent and Gross profit decreased 3.6 percent.
Retail Pharmacy International:
Retail Pharmacy International reflected third-quarter sales of $2.8 billion, a decrease of 7.3 percent from the year-ago quarter mainly due to detrimental currency impact. Gross profit declined 8.5 percent, in comparison to the same quarter a year ago.
Pharmaceutical Wholesale recorded sales of $5.9 billion in the third quarter, a 1.7 percent decrease from the quarter a year ago. Operating Income of $87 million was recorded.
Dividend Declared & Conference Call
The company declared a quarterly dividend of 44 cents per share payable to stockholders as of May 18, 2019, on June 12, 2019. Walgreens Boots Alliance held a conference call to discuss the third quarter results on June 27. A replay for which will be available on the website for the next 12 months after the call. Also, an archived version was made available from 11.30 am ET from June 27 to July 4, 2019, through the following numbers: U.S. and Canada: +1 800 585 8367, Outside the U.S. and Canada: +1 416 621 4642 (using replay code 6984232)
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