The Walgreens Boots Alliance said on Friday that it had declined quarterly sales and was earning money due to declining demand for Covid-19, a major investment in its healthcare industry. and an opioid settlement with Florida.
Shares closed the day at $ 37.90, down 7.27%.
The drugstore stood by its full -year forecast, saying adjusted revenue in each division is expected to grow by low interest rates. He pointed to the return of the store and more online cars. It is said that investing in health care, such as opening doctor’s offices in stores, will pay off in the future.
With inflation rising in the pockets of consumers, CEO Roz Brewer said Walgreens is working with suppliers to ensure lower prices than competitors. He said Walgreens had seen a history of medicinal properties in the economy.
“There’s a change in the score due to food and fuel increase, but health and well -being will always be important,” he said in a phone call with reporters. .
In addition, the locations of the company’s drug stores – a short drive, car ride or drive from many retailers – give Walgreens a much more affordable place, he said.
Here is what the company reported and what analysts expected for the three -month period ending May 31, based on Refinitiv data:
- Earnings per category: 96 cents adjusted vs. 92 cents expected
- Have got: $ 32.6 billion vs. $ 32.06 billion estimated
In the quarter, revenue fell to $ 289 million, or 33 cents per game. from $ 1.2 billion, or $ 1.38 per game, a year earlier. It reported a sharp drop in a $ 683 million fine related to its opioid treatment with the state of Florida, a drop in U.S. drug sales as a result of the high availability of Covid medications over the past year and investments in its health care business.
In addition, the group received 96 percent for each category, more than the 92 percent estimated by the analysts surveyed by Refinitiv.
Sales were down $ 32.6 billion from $ 34.03 billion a year earlier. Analysts estimated $ 32.06 billion.
Walgreens increased sales during the illness season as customers turned to its stores for cores and Covid trials. That demand is disappearing, requiring the industry to promote growth in other ways.
The company delivered 4.7 million barrels in its third quarter, a significant drop from 15.6 million barrels in the first quarter and 11.8 million barrels in the second quarter.
But Global Treasurer James Kehoe said Walgreens now expects to handle 35 million Covid patients this year, compared to 31 million previously estimated.
That’s more than the 34.6 million medicines stored in the previous financial year, when vaccines were limited because they were previously delivered to nursing homes and nursing homes. long.
While Walgreens is facing other challenges related to growth, Kehoe said Covid is the biggest unknown to compare the store’s performance.
Health care has become a major motivator, with Walgreens partnering with VillageMD to open hundreds of physician offices in its stores. There are more stores at Health Corners, places run by nurses and pharmacists who can communicate with patients and help them manage their illnesses.
Walgreens has expanded online options, such as curbside pickup and delivery, to try to keep customers from buying toothpaste, soap and more from online retailers. such as Amazon. The agency said its digital options increased 25% from a year ago, up from 95% growth the previous year. Growth was driven by 2.8 million pickup orders per day, the company said.
In the US and UK, purchases were made in stores when customers returned. Sales of similar grocery stores in the U.S., including store -bought products such as shampoo, toothpaste and more, rose 2.4%, excluding tobacco. . She gets a boost from selling Covid trials at home as well as breast, cold and herbal remedies.
In the pharmaceutical sector, same -store sales in the U.S. increased by 2% year -over -year – but the number of orders fell. That section contains medicines.
In the UK, similar retail sales for stores jumped 24% at Boots – showing largely lower sales and smaller store visits over the past year. Sales of a variety of drugs were flat, falling 0.4%.
Earlier this week, Walgreens said it would cancel plans to sell its UK -based Boots business. The company said in January it was looking at design options for that segment, with a potential sale.
Brewer said Friday that the company has talked to some interested parties in selling Boots. But he said the industry had decided to hold on to the shackles of changing global market conditions.
On Wednesday, Walgreens shares were down about 22% so far this year. The shares closed at $ 40.87, bringing the company’s market value to $ 35.3 billion.
Read the business release here.