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Overall, Walgreens said Tuesday that it lost $2.85 billion
compared to a $5.91 billion loss in the previous year’s quarter.
Adjusted results not counting one-time items totaled 63 cents
per share in the most recent quarter. Sales grew 4% to $38.59
billion
Analysts expected fiscal second-quarter earnings of 53 cents per
share on about $38 billion in revenue, according to the data
firm FactSet.
Walgreens said in March that it had agreed to be acquired by the
private equity firm Sycamore Partners in a deal with an equity
value of just under $10 billion.
The buyout came as the drugstore chain deals with a host of
problems including thin prescription reimbursement, rising costs
and a VillageMD clinic business that has struggled to gain
traction with patients.
The Deerfield, Illinois, company is cutting costs and closing
stores. In January, It said it was suspending a quarterly
dividend it has offered for more than 90 years.
In its fiscal second quarter, sales from Walgreens’ established
U.S. pharmacies jumped 12%, helped partly by more prescriptions.
But retail sales in those stores slipped around 3%.
Walgreens Boots Alliance Inc. also runs nearly 3,700
international stores, with locations in the United Kingdom,
Mexico, Thailand and Ireland. The U.S. segment is the biggest
part of its business.
In the recent quarter, Walgreens said its operating loss
included a $3 billion, non-cash impairment charge tied partly to
its VillageMD business. That compares to a charge of more than
$12 billion in the previous year’s quarter.
Walgreens withdrew its annual forecast due to its pending deal
and did not host a conference call with analysts to discuss
results.
Company shares advanced 19 cents to $10.90 Tuesday morning while
market indexes staged a bigger rally from losses Monday.
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