Earnings were announced before Virtual Investor Day. Walgreens CEO Roz Brewer, who joined the company earlier this year, has set out a strategy to rebrand the company and drive growth.
Equities rose 7.4% on Thursday to close at $ 50.77 as investors processed an ambitious plan to transform into a drugstore chain healthcare-focused company.An important element of this strategy is Announcement of $ 5.2 billion investment in Village MD Thursday, A private care company that has a clinic in Walgreens stores.
A majority stake in VillageMD will help Walgreens not only prescribe, but also hire a doctor who can prescribe it.
In the fourth quarter, Walgreens received 13.5 million vaccines — Almost twice the expected 7 million In a period of 3 months. People get booster doses, Younger children are expected to qualify for shots soon..
“Mandate plays a role,” CEO Roz Brewer said in an interview with CNBC. Versa Coombs.. “Many companies, organizations, cities and municipalities require it, and I think I have to tell people,” I need to go to work, so I have to get this vaccine. ” So it is producing an increase. And we are looking at it in our store. “
In addition, she said, people are worried about getting COVID — Especially for delta variants. Walgreens said that in addition to the increase in vaccination, there was a surge in sales from the Covid test at home and a recovery in demand for over-the-counter drugs for colds, coughs and the flu.
Walgreens also said it achieved its goal of saving $ 2 billion annually from operations a year earlier than planned. Chief Financial Officer James Kehoe said he would raise his cost savings target to $ 3.3 billion by fiscal year 2024.
The company said it expects adjusted earnings per share in 2022 to level off at a constant exchange rate.
Compared to what analysts expected in the fourth quarter, which ended August 31, Walgreens reported: Based on Refinitiv data:
- Profit per share: Adjusted $ 1.17 vs. Forecast $ 1.02
- Revenue: Forecast of $ 34.26 billion vs. $ 33.30 billion
Net income increased to $ 627 million, or 72 cents per share, for the quarter. From $ 373 million a year ago (43 cents per share). Walgreens earned $ 358 million, or 41 cents per share, from continuing operations in the last quarter.
However, excluding items, the company is making $ 1.17 per share, which is higher than the $ 1.02 forecast by analysts surveyed by Refinitiv.
Sales increased to $ 34.26 billion From $ 30.37 billion last year, higher than analysts expected $ 33.30 billion.
Online and US Open Walgreens store sales increased 8.1% year-over-year as consumers vaccinated with the Covid-19 vaccine and filled out more prescriptions. Sales of health and wellness products increased 14% year-on-year as consumers purchased over-the-counter medications for Covid tests, vitamins, coughs, colds and the flu at home.
According to Brewer, the Covid vaccine has had a “halo effect” in over-the-counter sales. She said that when people walked to the pharmacy for jabs or waited 15 minutes after the shot, some people bought other types of products, from beauty items to allergy remedies. She said she wanted to increase the number of other types of vaccines Walgreens administers, such as for hepatitis B and others.
Its international segment, including UK-based chain boots, has rebounded after the Covid-19 restrictions were lifted in July. Online and Boots UK store sales increased 11.4% in pharmacy services and 15% in retail compared to the quarter at least a year ago.
According to the company, traffic at boot stores on main streets, such as near offices and commuting hubs, is recovering, but still below pre-pandemic levels.
The drugstore chain says it has administered more than 40 million Covid vaccines so far. Vaccination peaked in the third quarter when 17 million shots were administered.
As of Thursday’s closing price, the Walgreens Boots Alliance’s share has risen by about 27% this year. The company has a market valuation of approximately $ 44 billion.
Walgreens Boots Alliance (WBA) Q4 2021 Revenue
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