Walgreens Boots Alliance, a Nasdaq-listed company that operates pharmacy networks around the world, has released its quarterly accounts. GAAP diluted earnings per share were $0,81, down 16,5%, compared to the prior year quarter, primarily due to
due to the write-down of the investment accounted for using the equity method in Guangzhou Pharmaceuticals Corporation; adjusted diluted earnings per share were $1,28, up 16,4% (+15,5% at constant exchange rates).
GAAP net income decreased 22,1% to $821 million; adjusted net income increased 7,8% to $1,3 billion, up 7,2% at constant exchange rates; sales increased 7,9% to $30,7 billion, up 7,2% at constant exchange rates; GAAP operating income decreased 8,6% to $1,3 billion on a loss on the AmerisourceBergen stake; adjusted operating income increased by 4,8% to $1,8 billion (+4,4% at constant exchange rates). The GAAP net cash deriving from operating activities was instead equal
to $961 million; free cash flow was $583 million.
For fiscal 2018, the company raises the low end of its adjusted diluted earnings per share guidance by 5 cents per share, now in the range of $5,45 to $5,70. Stefano Pessina, Executive Vice Chairman and CEO of Walgreens Boots Alliance, said, “We delivered another strong performance in the first quarter due to strong prescription volume and market share growth in the US Retail Pharmacy division. At the same time, we continue to strengthen the company's position for future growth, with the acquisition of the first Rite Aid stores following regulatory clearance of the transaction last September. After the end of the quarter, we announced an agreement to acquire 40% of Sinopharm Holding Guoda Drugstores Co., Ltd., a leading pharmacy chain in China, where recent regulatory reforms have allowed us to identify retail opportunities. We have also accepted an offer to sell part of our stake in Guangzhou Pharmaceuticals Corporation, our Chinese distribution partner, in exchange for a significant cash return.”
