Company Delivers Results at High End of Guidance Range; Expects EPS Growth in Fiscal 2021
Fourth quarter Walgreens Boots Alliance highlights, year-over-year
*Sales increased 2.3 percent to $34.7 billion, up 2.3 percent on a constant currency basis
*Operating income decreased 26.0 percent to $650 million; Adjusted operating income decreased 27.7 percent to $1.1 billion, down 27.4 percent on a constant currency basis
*EPS decreased 42.8 percent to $0.43; Adjusted EPS decreased 28.2 percent to $1.02, down 27.9 percent on a constant currency basis; reflecting an estimated adverse COVID-19 impact of approximately $0.46
Fiscal 2020 highlights, year-over-year:
*Sales increased 2.0 percent to $139.5 billion, up 2.5 percent on a constant currency basis
*Operating income decreased 73.7 percent to $1.3 billion; Adjusted operating income decreased 24.9 percent to $5.2 billion, down 24.8 percent on a constant currency basis
*EPS decreased 88.0 percent to $0.52; Adjusted EPS decreased 20.8 percent to $4.74, down 20.6 percent on a constant currency basis; reflecting an estimated adverse COVID-19 impact of approximately $1.06
*Net cash provided by operating activities was $5.5 billion, a decrease of $109 million compared with fiscal 2019; Free cash flow increased 5.6 percent to $4.1 billion
Executive Vice Chairman and CEO Stefano Pessina said, “I am pleased to report results that came in at the high end of our expectations as we continue to adapt and transform our business model to changing customer needs. Despite uncertainty amid the global COVID-19 pandemic, we are seeing gradual improvement in key U.S. and UK markets and continued strong performance in our wholesale business. I’m also encouraged by the accelerating growth in our e-commerce platforms. Now, more than ever, our pharmacy-centered business is at the heart of community healthcare and we are expanding on that role for the future. I continue to be inspired by the tireless efforts of our teams as they support and care for our customers, patients and communities, while accelerating progress on our clear set of strategic priorities. Looking ahead, we are projecting adjusted EPS growth in fiscal 2021, as reflected in our new guidance.”
Overview of Fourth Quarter Results
Fiscal 2020 fourth quarter net earnings attributable to Walgreens Boots Alliance decreased 44.9 percent to $373 million compared with the same quarter a year ago and net earnings per share1 decreased 42.8 percent to $0.43. Adjusted net earnings2 decreased 30.9 percent to $887 million, down 30.6 percent on a constant currency basis. Adjusted earnings per share were $1.02, down 28.2 percent on a reported currency basis and down 27.9 percent on a constant currency basis, compared with the same quarter a year ago.
The decreases in both net earnings and adjusted net earnings were primarily due to an estimated adverse COVID-19 impact of $0.46, lower U.S. pharmacy gross profit and year-on-year bonus changes, partially offset by Transformational Cost Management Program savings.
Sales in the fourth quarter were $34.7 billion, an increase of 2.3 percent from the year-ago quarter on both a reported and constant currency basis.
Operating income was $650 million, a decrease of 26.0 percent from the same quarter a year ago. Adjusted operating income was $1.1 billion, a decrease of 27.7 percent from the same quarter a year ago, and a decrease of 27.4 percent on a constant currency basis. The company estimates adverse COVID-19 impact of approximately $520 million, or 34 percentage points of growth.
Net cash provided by operating activities was $2.1 billion in the fourth quarter, a decrease of $292 million from the same quarter a year ago. Free cash flow was $1.7 billion, a decrease of $248 million versus the same quarter last year.
details at: https://www.walgreensbootsalliance.com/news-media/press-releases/2020/walgreens-boots-alliance-reports-fiscal-year-2020-results