Walgreens Boots Alliance, Inc. (Nasdaq: WBA) today announced financial results for the second quarter of fiscal 2021, which ended Feb. 28, 2021.
“Overall, we have achieved a good financial quarter with results well ahead of expectations, despite significant impacts from COVID-19, and we have raised our full-year EPS guidance. I am optimistic about our ability to drive sustainable, long-term value for our shareholders, while acknowledging that there is still work to be done to stabilize the base business,” said Brewer. “I will continue to review closely all our initiatives, strategies and opportunities to capitalize fully on the incredible potential in front of us. Our team will move swiftly and decisively to best serve the needs of our patients, customers and communities around the world, at this critical time and beyond.”
Financial Reporting Revisions for Pending Disposition of Alliance Healthcare Businesses
On Jan. 6, 2021, WBA announced the sale of the majority of the company’s Alliance Healthcare business and a portion of the Retail Pharmacy International segment’s businesses in Europe to AmerisourceBergen for $6.5 billion. Upon closing, the company will account for the transaction as a business disposition. Until closing, the related assets, liabilities and operating results will be reported as discontinued operations and are reflected as such in the company’s second quarter financial results. As a result of the transaction, the company has reorganized its remaining businesses into two reportable operating segments, United States and International. Corporate-related overhead costs are recorded separately and included in consolidated continuing operations.
Overview of Second Quarter Results
WBA had fiscal 2021 second quarter sales from continuing operations of $32.8 billion, an increase of 4.6 percent from the year-ago quarter, and an increase of 3.5 percent on a constant currency basis1, reflecting strong International segment growth, aided by the company’s joint venture in Germany, and the United States segment.
Operating income from continuing operations was $832 million in the second quarter, compared with $1.1 billion in the same quarter a year ago. Adjusted operating income from continuing operations was $1.2 billion, a decrease of 22.5 percent on a reported currency basis and a decrease of 22.9 percent on a constant currency basis. The decreases reflect adverse COVID-19 impacts in the United States and International markets partly offset by cost savings related to the company’s Transformational Cost Management Program.
Total net earnings attributable to WBA, including discontinued operations, increased 8.4 percent compared with the same quarter a year ago to $1.0 billion, reflecting a gain from the sale of a portion of the company’s equity method investment in Option Care Health and a lower effective tax rate driven by discrete items, partly offset by lower operating income. Total adjusted net earnings in constant currency decreased 10.2 percent to $1.2 billion.
Total earnings per share2 (EPS) in the second quarter increased 10.9 percent to $1.19, compared to $1.07 in the year-ago quarter. Total adjusted EPS decreased 7.5 percent to $1.40, down 8.2 percent on a constant currency basis.
Net earnings from continuing operations in the second quarter increased 6.3 percent compared with the same quarter a year ago to $922 million. Adjusted net earnings from continuing operations decreased 12.1 percent to $1.1 billion, down 12.8 percent on a constant currency basis, compared with the same quarter a year ago.
EPS from continuing operations increased 8.7 percent to $1.06. Adjusted EPS from continuing operations was $1.26 compared with $1.41 the same quarter a year ago, a decrease of 10.1 percent on a reported basis and a decrease of 10.8 percent on a constant currency basis.
Net cash provided by operating activities was $1.4 billion in the second quarter and free cash flow was $1.1 billion, a $5 million decrease compared to the year-ago quarter.
more at: https://www.walgreensbootsalliance.com/news-media/press-releases/2021/walgreens-boots-alliance-fiscal-2021-second-quarter-results-exceed