Walgreens Boots Alliance(US:WBA)2025-06-26 11:15Financial Performance - Third quarter sales increased 7.2% year-over-year to $39.0 billion, with a 6.9% increase on a constant currency basis[6] - Third quarter loss per share was $0.20, compared to earnings per share of $0.40 in the year-ago quarter, reflecting a decline of 150%[7][11] - Adjusted earnings per share decreased to $0.38 from $0.63 in the year-ago quarter, a decline of 39.6% on a constant currency basis[7][11] - Net loss for the third quarter was $175 million, a decrease of $519 million compared to net earnings of $344 million in the year-ago quarter[9] - Adjusted operating income for the third quarter was $558 million, down from $613 million in the year-ago quarter, reflecting lower U.S. retail sales[8] - The company has withdrawn fiscal 2025 guidance due to the pending acquisition by entities affiliated with Sycamore Partners[4][31] - For the nine months ended May 31, 2025, the net loss was $4,836 million, a significant improvement from a net loss of $12,370 million in the same period of 2024, representing a reduction of approximately 61.0%[50] - Adjusted net earnings attributable to Walgreens Boots Alliance, Inc. for the nine months ended May 31, 2025, were $1,317 million, down from $2,152 million in 2024, a decrease of approximately 38.8%[62] Sales and Revenue - U.S. Retail Pharmacy segment sales were $30.7 billion, up 7.8% year-over-year, with comparable sales increasing 10.3%[20] - International segment sales reached $6.2 billion, a 7.8% increase from the year-ago quarter, with a 5.9% increase on a constant currency basis[24] - U.S. Healthcare segment sales were $2.1 billion, a decrease of $23 million, primarily due to a 6.5% decline in VillageMD sales[27] - Sales for the three months ended May 31, 2025, were $38,986 million, an increase from $36,351 million in the same period of 2024, representing a growth of 4.5%[46] - Total sales for the three months ended May 31, 2025, were $30,715 million, compared to $28,503 million for the same period in 2024, representing a growth of approximately 7.6%[67] - The U.S. Retail Pharmacy segment's sales for the nine months ended May 31, 2025, were $91,961 million, compared to $86,308 million for the same period in 2024, showing an increase of about 6.1%[67] Cash Flow and Liquidity - Net cash provided by operating activities was $584 million, a $20 million decrease compared to the year-ago quarter[12] - Cash flows from operating activities provided $245 million, compared to a cash outflow of $314 million in the prior year, indicating a positive turnaround[50] - The company reported a net cash provided by investing activities of $260 million, down from $1,106 million in the previous year, reflecting a decrease of approximately 76.5%[50] - The net cash used for financing activities was $2,785 million, compared to $912 million in the prior year, indicating a significant increase in cash outflow[50] - The cash, cash equivalents, and restricted cash at the end of the period were $939 million, an increase from $740 million at the end of the previous year[50] - The company experienced a net decrease in cash, cash equivalents, and restricted cash of $2,280 million for the nine months ended May 31, 2025, compared to a decrease of $117 million in the prior year[50] Assets and Liabilities - Total assets decreased to $69,406 million as of May 31, 2025, down from $81,037 million as of August 31, 2024, reflecting a decline of 14.3%[47] - Current liabilities were $25,958 million as of May 31, 2025, compared to $26,953 million as of August 31, 2024, showing a decrease of 3.7%[47] - The company’s cash and cash equivalents decreased to $766 million as of May 31, 2025, from $1,319 million as of August 31, 2024, a decline of 42%[47] - The company’s long-term debt decreased to $6,937 million as of May 31, 2025, from $8,044 million as of August 31, 2024, a reduction of 13.8%[47] Impairments and Adjustments - The company reported an operating loss of $5,759 million for the nine months ended May 31, 2025, an improvement from a loss of $13,099 million in the same period of 2024[46] - The company recognized impairment of goodwill and intangibles amounting to $89 million for the three months ended May 31, 2025[68] - The company reported a total impairment of goodwill, intangibles, and long-lived assets of $5,432 million for the nine months ended May 31, 2025[68] - The company’s impairment of goodwill, intangibles, and long-lived assets for the nine months ended May 31, 2025, was $6,195 million, down from $13,091 million in 2024, indicating a reduction of approximately 52.7%[62] - The Company recorded professional services and other transaction-related expenses of $15 million and $50 million for the three and nine months ended May 31, 2025, related to the merger agreement with Blazing Star Parent, LLC[65] Employment and Operations - Walgreens Boots Alliance employs approximately 312,000 people across eight countries, maintaining a significant presence in the healthcare ecosystem[41]