Walgreens Boots (WBA) profits up 6.4% in Q4 as sales surge

Highlights

• Walgreens’ fourth-quarter sales increased by 12.8% to US$34.3 billion from the year-ago quarter, driven by strong growth in international and the US markets.
  
  
• Walgreens’ net earnings from operations increased by 6.4% YoY to US$358 million in the quarter.
  
  
• Its full-year EPS from continuing operations was US$2.30 against US$0.20 in the year-ago period. The adjusted EPS jumped 14.6% to US$4.91.

Pharmacy chain operator Walgreens Boots Alliance Reports on Thursday reported a fourth-quarter profit of US$358 million after witnessing robust growth in the US and the UK markets.

Walgreens’ net earnings from operations increased by 6.4% YoY to US$358 million in the quarter. Walgreens Boots CEO Roz Brewer said the lifting of Covid-19 restrictions helped in business growth.

He lauded the team members for their stellar performance during the quarter while underscoring the important role of the “pharmacist and local pharmacy” in the ever-changing healthcare sector.

Fourth quarter highlights

Walgreens’ fourth-quarter sales increased by 12.8% to US$34.3 billion from the year-ago quarter, driven by strong growth in its international and the US segments.

The operating income rose by 49.7% YoY to US$910 million in the quarter. In addition, the adjusted operating income from operations jumped 22.9% on a reported currency basis to US$1.2 billion, suggesting strong gross profit growth across pharmacy and retail segments.

Its adjusted net earnings from continuing operations soared 29.6% YoY to US$1.0 billion.

The fourth-quarter EPS from continuing operations were US$0.41, up 6.4% YoY.

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Fiscal 2021 highlights

Its full-year EPS from continuing operations was US$2.30 against US$0.20 in the year-ago period. The adjusted EPS jumped 14.6% to US$4.91.

The total sales for the fiscal year from continuing operations were US$132.5 billion, up 8.6% YoY.

In addition, net cash from operating activities in FY21 rose by US$70 million to US$5.6 billion. Walgreens’ free cash flow increased by US$65 million year-over-year to US$4.2 billion.

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Source: Pixabay

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Recent Developments

Walgreens Boots announced a majority investment in healthcare company CareCentrix to boost its technology-enabled homecare capabilities.

Walgreens will invest US$330 million for a 55% stake in CareCentrix, with an option to purchase the remaining portion in the future.

The transaction is expected to close in the second quarter of FY22 after regulatory clearances.

Walgreens has also invested US$5.2 billion in VillageMD to boost its primary healthcare segment in the US. The investment increases Walgreens’ stake in the company to 63%.

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Stock performance

The Walgreens stock traded at US$51.5499, up 9.08%, at 2:23 pm ET from the previous close.

Its 52-week highest and the lowest stock prices were US$57.05 and US$33.36, respectively, while its P/E and forward P/E one-year ratios are 19.51 and 9.91, respectively.

Walgreens’ market cap is US$44.56 billion, and the annualized Dividend is US$1.91.