Walgreens Boots Alliance (WBA), which operates Walgreens in the US and Boots in the UK, has reported its operating loss surged by 104.5% to $14.07bn in fiscal year 2024 (FY24), from $6.88bn in FY23.
For the 12 months ending 31 August 2024, the company's sales rose by 6.2% to $147.65bn from $139.08bn in FY23.
WBA's net loss attributable to the company for FY24 was $8.63bn, marking an increase of 180.4% from $3.08bn in the prior year.
Meanwhile, the loss per share for FY24 was $10.01, also up by 180.4% compared to $3.57 in FY23.
In the third quarter (Q3) of FY24, the company reported net earnings of $344m, up $225m from $118m in Q3 FY23.
In response to these financial challenges, the company has announced a programme that targets approximately 1,200 store closures over the next three years, including roughly 500 stores in FY25.
This plan also encompasses the 300 stores previously approved for closure under the company’s transformational cost management programme.
Currently, WBA operates approximately 12,500 locations across the US, Europe, and Central America.
WBA CEO Tim Wentworth said: "Our financial results in the fiscal fourth quarter and full-year 2024 reflected our disciplined execution on cost management, working capital initiatives and capex reduction.
“In fiscal 2025, we are focusing on stabilising the retail pharmacy [segment] by optimising our footprint, controlling operating costs, improving cash flow, and continuing to address reimbursement models to support dispensing margins and preserve patient access for the future."
Looking ahead to FY25, WBA expects adjusted earnings per share (EPS) to be between $1.40 and $1.80, with growth anticipated in the US Healthcare and International segments.
The company also forecasts sales to be in the range of $147bn to $151bn.
"Fiscal 2025 will be an important rebasing year as we advance our strategy to drive value creation. This turnaround will take time, but we are confident it will yield significant financial and consumer benefits over the long term," Wentworth added.
