Cencora(US:COR)2025-05-07 10:36Revenue Performance - Revenue for the second quarter of fiscal 2025 was $75.5 billion, representing a 10.3 percent increase year-over-year, primarily driven by an 11.4 percent increase in the U.S. Healthcare Solutions segment[1][5] - Revenue for the three months ended March 31, 2025, was $75,453,673, representing a 10.3% increase from $68,414,307 in the same period of 2024[25] - Revenue for the six months ended March 31, 2025, was $156,940,733, an 11.6% increase from $140,667,140 in the same period of 2024[28] - U.S. Healthcare Solutions revenue was $68.3 billion, up 11.4 percent year-over-year, driven by unit volume growth in diabetes and weight loss products[9][11] - International Healthcare Solutions revenue was $7.2 billion, a 0.7 percent increase year-over-year, with segment operating income decreasing by 17.3 percent[11] - U.S. Healthcare Solutions revenue increased by 12.5% to $142,316,959, while International Healthcare Solutions revenue grew by 3.1% to $14,630,897[45] Earnings and Profitability - GAAP diluted EPS for the second quarter was $3.68, a 76.1 percent increase from $2.09 in the prior year, while adjusted diluted EPS rose 16.3 percent to $4.42[1][5] - Adjusted diluted EPS guidance for fiscal 2025 has been raised to a range of $15.70 to $15.95, up from the previous range of $15.30 to $15.60[2][16] - Gross profit for the second quarter was $3.1 billion, a 20.6 percent increase year-over-year, with gross profit margin as a percentage of revenue increasing by 35 basis points to 4.06 percent[4][5] - Operating income for the second quarter was $1.0 billion, an increase of 87.3 percent compared to the same period in the previous fiscal year[5][10] - Net income attributable to Cencora, Inc. for the three months ended March 31, 2025, was $717,871, a 70.6% increase from $420,775 in the prior year[25] - Operating income for the six months ended March 31, 2025, was $1,742,444, a 26.6% increase from $1,376,134 in 2024[45] Expenses and Costs - Total operating expenses for the three months ended March 31, 2025, were $2,023,619, a 2.0% increase from $1,984,764 in the same period of 2024[25] - The company recorded $37.5 million of expense adjustments related to the acquisition of RCA in the three months ended March 31, 2025[25] - The company incurred $225,985 thousand in litigation and opioid-related expenses during the three months ended March 31, 2024[34] - The company incurred $3,947,761 in costs related to acquired companies during the six months ended March 31, 2025[49] Cash Flow and Financial Position - Net cash provided by operating activities for the six months ended March 31, 2025, was $632,456, compared to $6,714 in 2024[49] - Cash and cash equivalents decreased to $1,978,061 as of March 31, 2025, from $3,132,648 as of September 30, 2024[47] - Long-term debt increased to $7,085,886 as of March 31, 2025, from $3,811,745 as of September 30, 2024[47] Tax and Dividends - The effective tax rate for the second quarter was 22.7 percent, compared to 9.8 percent in the prior year quarter[5][10] - The company declared a quarterly cash dividend of $0.55 per common share, payable on June 2, 2025[16] Foreign Currency Impact - For Q2 fiscal 2025, revenue was $75.5 billion, with a negative impact from foreign currency translation of $357.7 million, resulting in constant currency revenue of $75.8 billion[54] - Adjusted operating income for Q2 fiscal 2025 was $1,192.3 million, negatively impacted by foreign currency translation of $6.6 million, leading to a constant currency adjusted operating income of $1,198.9 million[54] - For the six months ended March 31, 2025, total revenue was $156.9 billion, with a negative impact from foreign currency translation of $574.4 million, resulting in constant currency revenue of $157.5 billion[54] - In the International Healthcare Solutions segment for Q2 fiscal 2025, revenue was $7.2 billion, negatively impacted by foreign currency translation of $357.7 million, resulting in constant currency revenue of $7.5 billion[54] - Operating income in the International Healthcare Solutions segment for Q2 fiscal 2025 was $159.3 million, with a negative impact from foreign currency translation of $6.6 million, leading to constant currency operating income of $165.9 million[54] Adjusted Metrics - Adjusted free cash flow for the six months ended March 31, 2025, was $176.0 million, derived from net cash provided by operating activities of $632.5 million minus capital expenditures of $235.0 million[56] - Adjusted net income attributable to the Company is a non-GAAP measure that excludes unusual, non-operating items[56] - The Company does not provide forward-looking guidance on a GAAP basis for certain metrics due to the unpredictability of future financial information[55] - Adjusted diluted earnings per share excludes impacts from various unusual and non-recurring items, providing a clearer view of ongoing operating performance[56] - The adjusted effective tax rate is calculated by dividing adjusted income tax expense by adjusted income before income taxes, excluding unusual items[56]