Walgreens Boots Alliance Posts Wider Loss In Q4; Announces Footprint Optimization

(RTTNews) - Walgreens Boots Alliance (WBA) posted a fourth quarter net loss of $3.0 billion compared to a net loss of $180 million in the year-ago quarter, primarily driven by a higher operating loss, a $2.3 billion non-cash charge for valuation allowance on deferred tax assets primarily related to opioid liabilities recognized in prior periods, and a non-cash impairment charge related to equity investment in China. Loss per share was $3.48, compared to a loss per share of $0.21. Adjusted net earnings decreased 41.0 percent to $340 million, down 40.8 percent on a constant currency basis, reflecting lower adjusted operating income. Adjusted EPS decreased 41.0 percent to $0.39, reflecting a decrease of 40.8 percent on a constant currency basis. On average, 13 analysts polled by Thomson Reuters expected the company to report profit per share of $0.36, for the quarter. Analysts' estimates typically exclude special items.

Fourth quarter sales increased 6.0 percent from the year-ago quarter to $37.5 billion, an increase of 6.1 percent on a constant currency basis. Analysts on average had estimated $35.75 billion in revenue.

"In fiscal 2025, we are focusing on stabilizing the retail pharmacy by optimizing 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," said Tim Wentworth, CEO, Walgreens Boots Alliance.

Walgreens Boots Alliance expects fiscal 2025 adjusted EPS of $1.40 to $1.80, with growth in U.S. Healthcare and International more than offset by a decline in U.S. Retail Pharmacy, a higher adjusted effective tax rate, and lower contributions from sale-leaseback and Cencora earnings.

The company also announced footprint optimization program targeting approximately 1,200 closures over the next three years, including approximately 500 closures in fiscal 2025, which will be immediately accretive to adjusted EPS and free cash flow.

Shares of Walgreens Boots Alliance are up 7% in pre-market trade on Tuesday.

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