Cencora(COR) - 2025 Q1 - Quarterly Results

Revenue Performance - Revenue for the first quarter of fiscal 2025 was $81.5 billion, representing a 12.8 percent increase year-over-year, driven by a 13.6 percent increase in the U.S. Healthcare Solutions segment[1][5] - U.S. Healthcare Solutions revenue was $74.0 billion, an increase of 13.6 percent year-over-year, with segment operating income rising 9.9 percent to $767.3 million[8][10] - International Healthcare Solutions revenue was $7.5 billion, a 5.5 percent increase year-over-year, with operating income decreasing by 2.9 percent[10] - Total revenue for the same period increased by 12.8% year-over-year, reaching $81.49 billion, driven by a 13.6% increase in U.S. Healthcare Solutions revenue[32] - For Q1 fiscal 2025, the company's revenue was $81.5 billion, negatively impacted by foreign currency translation of $216.8 million, resulting in constant currency revenue of $81.7 billion[42] - The International Healthcare Solutions segment reported revenue of $7.5 billion, with a constant currency revenue of $7.7 billion after accounting for foreign currency translation[42] Earnings and Income - Adjusted diluted EPS guidance for fiscal 2025 has been raised to a range of $15.25 to $15.55, up from the previous range of $15.15 to $15.45[2][16] - Operating income for the first quarter was $706 million, a 14.2 percent decrease compared to the same period last year, primarily due to increased operating expenses[4][5] - Adjusted operating income for the first quarter was $949 million, a 7.2 percent increase compared to the prior year[9] - Net income attributable to Cencora, Inc. was $488,600, a decrease of 18.8% from $601,500 in the prior year, resulting in diluted earnings per share of $2.50, down 16.1%[25] - Adjusted Non-GAAP net income was $727,796, reflecting a 13.7% increase compared to the prior year, with adjusted diluted earnings per share of $3.73[27] - GAAP net income for the three months ended December 31, 2023, was $601.5 million, with diluted earnings per share of $2.98[30] Expenses and Costs - Total operating expenses increased by 12.5% to $1,851,784, with distribution, selling, and administrative expenses rising by 5.2% to $1,472,055[25] - The company incurred a $35.5 million loss on the divestiture of non-core businesses during the quarter[27] - Interest expense decreased by 31.1% to $27,933, down from $40,564 in the previous year[25] - Net interest expense decreased by 31.1 percent to $27.9 million, attributed to higher interest income from increased cash balances[5][9] Dividends and Shareholder Returns - The company declared a quarterly cash dividend of $0.55 per common share, payable on March 3, 2025[17] Acquisitions and Strategic Moves - The acquisition of Retina Consultants of America was completed on January 2, 2025, enhancing the company's leadership in Specialty healthcare services[3][11] - The company plans to finance a portion of the upcoming acquisition of Retina Consultants of America with $1.8 billion in senior notes[37] Tax and Financial Metrics - The effective tax rate for the first quarter was 20.4 percent, down from 23.0 percent in the prior year[5] - The adjusted effective tax rate is calculated by dividing adjusted income tax expense by adjusted income before income taxes, providing a clearer view of the company's tax performance excluding unusual items[44] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period totaled $3.22 billion, an increase from $3.13 billion at the end of the previous quarter[35] - The company experienced a net cash used in operating activities of $2.72 billion, compared to $885.16 million provided in the same period last year[37] - Long-term debt increased to $5.94 billion, up from $3.81 billion in the previous quarter[35] Non-GAAP Measures and Adjustments - Adjusted diluted earnings per share excludes impacts from antitrust litigation settlements, LIFO expense, and other non-recurring items, reflecting ongoing operational performance[44] - Adjusted net income attributable to the company excludes unusual, non-operating, unpredictable, non-recurring, or non-cash items, providing a clearer picture of ongoing performance[44] - Adjusted gross profit margin is calculated as adjusted gross profit divided by total revenue, providing insight into the company's core operating performance[41] - The company emphasizes the importance of non-GAAP financial measures to evaluate operating performance and financial planning[41]