On May 26, 2021, in New York City, a man walks from Dell Read to Hell’s Kitchen by Walgreens.
Noam Galai | Getty Images
On Thursday, the Walgreens Boots Alliance raised its outlook for this year and developed a growth strategy after the future financial strength was stronger than expected in the third quarter.
The pharmacy chain said it now expects adjusted earnings per share to grow 10 percent during the year due to renewed sales and growth due to Covid-19 shots. Earlier, he had predicted growth to numbers above average. So far, the company has administered more than 25 million vaccines and has begun offering one-day meetings.
In premarket trading, shares rose more than 2 percent.
The company is in the midst of a turnaround led by former Starbucks CEO, new CEO Rose Brewer. Even before the pandemic, pharmacy chains were under pressure as online retailers like Amazon stole the sale of everyday items such as toothbrushes and shampoo as well as pharmacy sales. The global health crisis has accelerated the transformation of this e-commerce, led to a decline in foot traffic, and forced companies to offer new ways to stay connected.
On Thursday, Walgreens provided more details on its strategic priorities. Among them, the pharmacy network is transforming itself into a neighborhood health facility as it opens primary care clinics with VillageMD in hundreds of stores and uses automation to free up time to care for pharmacists and answer customer questions. The company also said it plans to focus on digital numbers, so more people will use its app and accept personal offers that inspire shopping. And he said he will continue to work to reduce annual spending by more than $ 2 billion by next fiscal year.
“This quarter’s results show an ongoing pace, and while we face challenges ahead, we are able to develop and upgrade key retail and pharmaceutical businesses in the future,” Brewer said in a press release.
Compared to what Walgreens analysts had expected in the third quarter, which ended May 31, Based on refinitive data:
- Earnings per share: $ 1.51 and $ 1.17 corrected as expected
- Income: $ 34.03 billion and the expected $ 33.76 billion
In the quarter, Walgreens reported a net profit of $ 1.20 billion, or $ 1.38 per share, That compares with a net loss of $ 1.71 billion a year ago, or $ 1.95 per share.
Excluding the entities, the company earned $ 1.51 per share, higher than the $ 1.17 expected by analysts surveyed by Refinitive.
Sales rose to $ 34.03 billion It exceeded $ 30.36 billion a year ago, compared to the $ 33.76 billion expected by analysts.
Walgreens ’same-store sales in the U.S. grew 6.4 percent year-over-year, while the company’s sales during the pandemic were mostly affected by people sitting at home. The number of prescriptions completed in the third quarter increased by about 10% compared to the previous year, including the abandonment of the Covid vaccine.
Walgreens ’international business in the UK, in particular, has recovered from a year ago. Comparable retail sales grew 39 percent year-on-year in the UK due to easing comparison measures in Boots and people returning to shops near airports, train stations and major parts of the city. Sales of expensive pharmacies increased by almost 4 percent compared to the same quarter last year.
Compared to the front of the store, retail sales grew 1.7 percent year-over-year as more customers received personalized offers, beauty items and printed photos.
As of Wednesday’s close, Walgreens shares have risen 32 percent so far this year. Shares rose 1.19 percent to $ 52.61 on Wednesday. The market value of the company is $ 45.48 billion.