Walgreens Boots Q1 Sales Grow, Net Loss Shrinks
First quarter sales at Walgreens Boots Alliance were up 10% as the company reported a smaller net loss when compared to the previous year.
Total sales for the three months ended November 30 were $36.7 billion, up from sales of $33.4 billion in the comparable quarter the previous year. Net loss was $67 million or $0.08 per diluted share, an improvement from the net less of $3.7 billion, or $4.31 per diluted share, in the same quarter the previous year. The net loss in the first quarter of fiscal year 2022 stemmed largely from opioid-related claims and litigation.
"WBA delivered fiscal first quarter results in line with overall expectations, reflecting disciplined execution in a challenging consumer backdrop,” said Tim Wentworth, CEO of Walgreens Boots Alliance. “We are evaluating all strategic options to drive sustainable long-term shareholder value, focusing on swift actions to right-size costs and increase cash flow, with a balanced approach to capital allocation priorities.”
The U.S. Retail Pharmacy segment reported first quarter sales of $28.9 billion, an increase of 6.4% from the year-ago quarter. Comparable sales increased 8.1% from the year-ago quarter.
Pharmacy sales were up 10.7% compared to the year-ago quarter. Comparable pharmacy sales increased 13.1% in the quarter compared to the year-ago quarter, benefiting from higher branded drug inflation and strong execution in pharmacy services.
Comparable prescriptions filled in the first quarter increased 1.3% from the year-ago quarter while comparable prescriptions excluding immunizations increased 1.8%, impacted by lower market growth due to a weaker flu and respiratory season, and Medicaid redeterminations. Total prescriptions filled in the quarter, including immunizations, adjusted to 30-day equivalents was 311.6 million, flat versus the prior year quarter.
Retail sales decreased 6.1% and comparable retail sales decreased 5% compared with the year-ago quarter, reflecting macroeconomic-driven consumer trends, a 160 basis point direct impact from a weaker flu and respiratory season, and Thanksgiving holiday store closures, company officials said.
Adjusted operating income decreased 37.2% to $694 million compared to $1.1 billion in the year-ago quarter, reflecting a weaker flu and respiratory season, lower retail sales, and continued pharmacy reimbursement pressure net of procurement savings, partly offset by execution in pharmacy services and cost savings, according to the company.
