Walgreens just freed up capital ‘to invest in growth initiatives’

January 05, 2024 12:58 AM AEDT | By Invezz

Walgreens just freed up capital ‘to invest in growth initiatives’ — Image source: Invezz

Walgreens has paid dividend for 91 years

The multinational announced 25 cents per share of quarterly dividend on Thursday – down from 48 cents. Tim Wentworth – the Chief Executive of Walgreens Boots Alliance said in a press release today:

This action reinforces our goal of increasing cash flow, while freeing up capital to invest in sustainable growth initiatives which we believe will ultimately improve shareholder value.

Walgreens has been paying a dividend consistently since the 1930s. Investors are content because the Nasdaq-listed firm did come in ahead of Street estimates in the first quarter.

Walgreens stock has gained over 25% since late November. Among notable supporters of the stock is famed investor Jim Cramer (read more).

Watch here: https://www.youtube.com/embed/vcyLpm1vcyQ?feature=oembed

Walgreens Q1 financial highlights

Lost $67 million versus the year-ago $3.72 billion
Per-share loss also narrowed from $4.31 to 8 cents
Adjusted EPS printed at 66 cents as per the press release
Sales jumped 10% year-over-year to $36.71 billion
Consensus was 53 cents a share on $34.95 billion in sales

Walgreens noted a 5.0% decline in its comparable retail sales in the recent quarter due to a weaker flu season. Boots UK saw comparable pharmacy sales edge up 0.8% while Boots.com printed an 18% sales growth. CEO Wentworth added:

We’re evaluating all strategic options to drive sustainable long-term shareholder value, focusing on swift actions to right-size costs and increase cash flow.

The post Walgreens just freed up capital ‘to invest in growth initiatives’ appeared first on Invezz

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