US retail pharmacy company Walgreens Boots Alliance (WBA) has reported net earnings of $344m in the third quarter (Q3) of fiscal 2024 (FY24), up $225m from $118m in Q3 FY23.
The retailer’s earnings per share also increased by $0.26 to $0.40 in Q3 FY24, compared to $0.14 in the same quarter of the previous year.
Go deeper with GlobalData
During the quarter ending 31 May 2024, WBA’s sales rose to $36.35bn, increasing 2.6% from $35.41bn in Q3 FY23.
The company also posted an operating income of $111m in Q3 FY24, compared to an operating loss of $477m in the same quarter one year earlier.
Its gross profit for the quarter was $6.46bn, down from $6.58bn in Q3 FY23.
As part of its strategic review, WBA finalised a multiyear footprint optimisation programme to close certain underperforming stores in the US.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataA report by Reuters revealed that the company plans to close between 650 and 700 US stores and up to 650 Boots stores in the UK.
The retailer expects pre-tax charges of between $3.8bn and $4.1bn through this initiative.
WBA chief executive officer Tim Wentworth said: “We continue to face a difficult operating environment, including persistent pressures on the US consumer and the impact of recent marketplace dynamics which have eroded pharmacy margins. Our results and outlook reflect these headwinds, despite solid performance in both our International and US healthcare segments.
‘Informed by our strategic review, we are focused on improving our core business, retail pharmacy, which is central to the future of healthcare. We are addressing critical issues with urgency and working to unlock growth opportunities. Many of these actions will take time, but I am confident that we have the right team and the right strategy to lead a business turnaround for Walgreens that our customers and patients need.”
For the full year 2024, WBA reduced its adjusted EPS [earnings per share] guidance to $2.80 from $2.95 due to challenging pharmacy industry trends and a disappointing US consumer environment.
In June 2024 the company halted plans for a potential initial public offering of its Boots UK drugstore chain.
