Walgreens Boots Alliance is on the verge of finalizing a deal with private-equity firm Sycamore Partners to take the embattled drugstore chain private in a transaction valued at approximately $10 billion, according to a report.Negotiations are in advanced stages, with both sides aiming to seal the agreement as soon as Thursday — though a last-minute hurdle could still delay or derail talks, sources told the Wall Street Journal. The deal is expected to involve Sycamore paying between $11.30 and $11.40 per sh ...

Core Insights - MercadoLibre (MELI) is outperforming its peers in the Retail-Wholesale sector with a year-to-date return of 25.3% compared to the sector average of 4.9% [4] - The Zacks Rank for MercadoLibre is 2 (Buy), indicating a favorable outlook based on earnings estimate revisions [3] Group 1: Company Performance - Over the past three months, the Zacks Consensus Estimate for MELI's full-year earnings has increased by 4.6%, reflecting improved analyst sentiment [4] - In the Internet - Commerce industry, MercadoLibre ranks 52 in the Zacks Industry Rank and has outperformed the industry average gain of 6.8% this year [6] Group 2: Sector Comparison - Walgreens Boots Alliance (WBA) is another stock in the Retail-Wholesale sector that has performed well, with a year-to-date return of 20.4% and a Zacks Rank of 2 (Buy) [5] - The Retail - Pharmacies and Drug Stores industry, which includes Walgreens, has seen a year-to-date increase of 20.7% [6]

Sales Performance - Sales for the three months ended November 30, 2024 increased by 10.2% to $6.4 billion, with a favorable currency impact of 3.6 percentage points[189] - Pharmacy sales decreased by 1.5% in the three months ended November 30, 2024, but comparable pharmacy sales in constant currency increased by 8.3%[190] - Retail sales increased by 9.6% for the three months ended November 30, 2024, with a favorable currency impact of 5.1 percentage points[191] - Pharmaceutical wholesale sales increased by 14.2% for the three months ended November 30, 2024, with a favorable currency impact of 2.9 percentage points[192] - U.S. Healthcare segment sales increased by $241 million to $2.2 billion for the three months ended November 30, 2024, driven by growth in all businesses[203] Operating Income and EBITDA - Operating income for the three months ended November 30, 2024 increased by 21.4% to $141 million, with a favorable currency impact of 1.5 percentage points[195] - Adjusted operating income for the three months ended November 30, 2024 increased by 17.9% to $168 million, with a favorable currency impact of 1.8 percentage points[196] - Adjusted operating income for the U.S. Healthcare segment improved by $121 million to $25 million for the three months ended November 30, 2024[207] - Adjusted EBITDA for the U.S. Healthcare segment improved by $109 million to $70 million for the three months ended November 30, 2024[208] - U.S. Retail Pharmacy segment reported an operating income of $17 million for Q1 2025, compared to $297 million in Q1 2024[217] - Adjusted operating income for the U.S. Healthcare segment improved to $25 million in Q1 2025 from a loss of $96 million in Q1 2024[217] - Adjusted EBITDA for the U.S. Healthcare segment increased to $70 million in Q1 2025 from a loss of $39 million in Q1 2024[222] Financial Adjustments and Costs - Total adjustments to operating loss amounted to $838 million in Q1 2025, up from $726 million in Q1 2024[219] - Adjusted net earnings attributable to Walgreens Boots Alliance, Inc. were $440 million in Q1 2025, down from $571 million in Q1 2024[219] - Adjusted diluted net earnings per common share were $0.51 in Q1 2025, compared to $0.66 in Q1 2024[221] - Footprint optimization costs were $333 million in Q1 2025, primarily related to restructuring activities[217][219] - Acquisition-related amortization costs were $269 million in Q1 2025, slightly down from $275 million in Q1 2024[217][219] - Acquisition and disposition-related costs were $104 million in Q1 2025, down from $163 million in Q1 2024[217][219] - Transformational cost management resulted in a net benefit of $15 million in Q1 2025, compared to a cost of $109 million in Q1 2024[217][219] - Total impairment charges for long-lived assets were $279 million in the three months ended November 30, 2024, compared to $162 million in the same period in 2023[8] Cash Flow and Liquidity - Cash, cash equivalents, and restricted cash decreased to $1.3 billion as of November 30, 2024, from $3.2 billion as of August 31, 2024[231] - Net cash used for operating activities decreased to $140 million in Q1 2025 from $281 million in Q1 2024, driven by lower opioid legal payments and higher operating income[245] - Net cash used for investing activities was $76 million in Q1 2025, compared to net cash provided by investing activities of $85 million in Q1 2024[247] - Net cash used for financing activities was $1.7 billion in Q1 2025, compared to net cash provided by financing activities of $186 million in Q1 2024[250] - Proceeds from debt were $3.2 billion in Q1 2025, down from $4.0 billion in Q1 2024, primarily from revolving credit facilities[251] - Payments of debt totaled $4.7 billion in Q1 2025, including $1.2 billion for 3.800% unsecured notes and $290 million for a senior unsecured term loan[253] - Cash dividends paid decreased to $216 million in Q1 2025 from $415 million in Q1 2024[255] - The company has repurchased $8.0 billion of its common stock under the June 2018 stock repurchase program as of November 30, 2024[256] - The company expects to fund its liquidity needs through cash flow from operations, existing credit facilities, and monetization of investments and other assets[230] Debt and Credit Ratings - The company had outstanding total debt of $8.1 billion as of November 30, 2024, with $446 million classified as current[235] - The company reduced its outstanding lease liability by $652 million during the three months ended November 30, 2024[238] - The company has an aggregate borrowing capacity of $5.8 billion under committed revolving credit facilities, expiring in fiscal 2026 and 2027[236] - Credit ratings as of January 9, 2025: Moody's Ba3 (Stable outlook), S&P BB- (Stable outlook)[258] - Long-term credit ratings were downgraded to BB (S&P) and Ba3 (Moody's) in fiscal 2024, impacting borrowing costs and access to capital markets[260] - The company's credit ratings significantly reduce its ability to issue commercial paper and may increase the cost of new financing[260] Legal and Pension Liabilities - The company accrued a total liability of $6.6 billion related to opioid-related claims and litigation settlements as of November 30, 2024[239] - The company made approximately $435 million in contributions to the Boots Pension Plan and estimates remaining contributions of $410 million to $480 million by the end of fiscal 2026[240] Capital Expenditures - Capital expenditure decreased to $284 million in Q1 2025 from $506 million in Q1 2024, driven by reduced spending on U.S. Retail Pharmacy and VillageMD projects[249] Critical Accounting Estimates - Critical accounting estimates include business combinations, leases, goodwill impairment, and long-lived assets impairment[263]

Financial Data and Key Metrics - No specific financial data or key metrics changes mentioned in the provided content [1][2][3][4] Business Line Data and Key Metrics - No specific business line data or key metrics changes mentioned in the provided content [1][2][3][4] Market Data and Key Metrics - No specific market data or key metrics changes mentioned in the provided content [1][2][3][4] Company Strategy and Industry Competition - No specific company strategy or industry competition details mentioned in the provided content [1][2][3][4] Management Commentary on Operating Environment and Future Outlook - The company anticipates making projections and forward-looking statements based on current expectations, but actual results could differ materially due to various factors [4] Other Important Information - The conference call includes participation from key executives such as the CEO, Global CFO, and other senior leaders who will participate in the Q&A session [3] Q&A Session Summary - No specific questions or answers from the Q&A session are provided in the content [1][2][3][4]

Financial Performance - Sales increased by 7.5% to $39459 million, or 6.9% on a constant currency basis, compared to 1Q24[13] - Adjusted operating income decreased by 13.7% to $593 million, or 14.0% on a constant currency basis, compared to 1Q24[13] - Adjusted EPS decreased by 23.1% to $0.51, or 23.4% on a constant currency basis, compared to 1Q24[13] - The company is maintaining full-year 2025 adjusted EPS guidance of $1.40 - $1.80[10] Segment Performance - U S Retail Pharmacy sales increased by 6.6% to $30866 million, but adjusted operating income decreased by 36.4% to $441 million[16] - U S Retail comparable pharmacy sales increased by 12.7%, while total retail sales decreased by 6.2% and comparable retail sales decreased by 4.6%[19, 23] - International sales increased by 6.5% on a constant currency basis to $6425 million, with adjusted operating income increasing by 16.1% to $168 million[25] - Boots UK retail comparable sales increased by 8.1%, and Boots com sales grew by 23% on a constant currency basis, representing 22% of Boots total retail sales in 1Q[28, 29] - U S Healthcare sales increased by $241 million to $2172 million, with adjusted operating income increasing by $121 million to $25 million[31] Cash Flow and Capital Allocation - Free cash flow was $(424) million, a $363 million increase compared to 1Q24, impacted by decreased capital expenditures and higher adjusted operating income excluding sale-leaseback[34] - Capital expenditure decreased by $223 million year-over-year, and lease liability decreased by $652 million[11] - The company closed 67 U S stores in 1Q and finalized the closure schedule for the next ~450 stores[11]

Financial Performance - First quarter loss per share was $0.31, compared to $0.08 in the year-ago quarter, with adjusted EPS decreasing by 23.4% to $0.51[2] - Net loss attributable to Walgreens Boots Alliance, Inc. (GAAP) was $265 million for Q1 2024, compared to $67 million in Q1 2023[27] - Adjusted net earnings attributable to Walgreens Boots Alliance, Inc. (Non-GAAP) were $440 million for Q1 2024, down from $571 million in Q1 2023[27] - Diluted net loss per common share (GAAP) was $0.31 in Q1 2024, compared to $0.08 in Q1 2023[27] - Adjusted diluted net earnings per common share (Non-GAAP) were $0.51 in Q1 2024, down from $0.66 in Q1 2023[27] - Net loss for the three months ended November 30, 2024, was $605 million, compared to $278 million in the same period in 2023[56] - First quarter operating loss was $245 million compared to an operating loss of $39 million in the year-ago quarter[44] - Net loss in the first quarter was $265 million compared to a net loss of $67 million in the year-ago quarter[45] - Adjusted earnings per share (EPS) was $0.51 versus $0.66 in the year-ago quarter[42] Sales and Revenue - First quarter sales increased by 7.5% to $39.5 billion, with growth across all business segments[17] - Total sales for the three months ended November 30, 2024, were $39.459 billion, with U.S. Retail Pharmacy contributing $30.866 billion, International $6.425 billion, and U.S. Healthcare $2.172 billion[31] - Total sales for the three months ended November 30, 2023, were $36.707 billion, with U.S. Retail Pharmacy contributing $28.944 billion, International $5.832 billion, and U.S. Healthcare $1.931 billion[33] - First quarter sales increased 7.5% year-over-year to $39.5 billion, up 6.9% on a constant currency basis[42] - U.S. Retail Pharmacy segment sales increased 6.6% to $30.9 billion, with comparable sales up 8.5%[46] - International segment sales increased 10.2% to $6.4 billion, with a favorable currency impact of 3.6%[47] - U.S. Healthcare segment sales grew to $2.2 billion, with VillageMD sales up 9%, CareCentrix up 16%, and Shields up 30%[48] Pharmacy and Prescription Performance - Pharmacy sales increased by 10.4%, with comparable pharmacy sales up 12.7%, driven by higher branded drug inflation and prescription volume[3] - Total prescriptions filled in the quarter increased by 1.5% to 316.3 million, with comparable prescriptions excluding immunizations up 3.5%[3] - Boots UK comparable pharmacy sales increased by 10.9%, and retail sales grew by 8.1%, with Boots.com sales up 30%[4] Operating Income and EBITDA - Operating loss improved to $325 million from $436 million in the prior year, with adjusted operating income turning positive at $25 million[5] - Adjusted EBITDA improved by $109 million to $70 million, driven by growth in VillageMD and Shields[5] - Adjusted operating income increased by 17.9% to $168 million, led by strong retail performance in Boots UK and growth in Germany[20] - Adjusted operating income for the three months ended November 30, 2024, was $593 million, with U.S. Retail Pharmacy contributing $441 million, International $168 million, and U.S. Healthcare $25 million[31] - Adjusted operating income for the three months ended November 30, 2023, was $687 million, with U.S. Retail Pharmacy contributing $694 million, International $142 million, and U.S. Healthcare a loss of $96 million[33] - Adjusted EBITDA for the U.S. Healthcare segment improved to $70 million in Q3 2024, compared to a loss of $39 million in the same period last year[35] Cash Flow and Financial Position - Net cash used for operating activities improved by $141 million to $140 million, with free cash flow improving by $363 million to negative $424 million[18] - Free cash flow was $(424) million compared to $(788) million in the year-ago quarter[39] - Net cash used for operating activities decreased to $140 million in 2024 from $281 million in 2023[56] - Additions to property, plant, and equipment decreased to $284 million in 2024 from $506 million in 2023[56] - Proceeds from debt were $3.229 billion in 2024, compared to $3.826 billion in 2023[56] - Payments of debt increased to $4.679 billion in 2024 from $3.776 billion in 2023[56] - Net cash used for financing activities was $1.685 billion in 2024, compared to net cash provided by financing activities of $186 million in 2023[56] - Net decrease in cash, cash equivalents, and restricted cash was $1.910 billion in 2024, compared to $10 million in 2023[56] Retail Performance - Retail sales decreased by 6.2%, with comparable retail sales down 4.6%, due to a weaker cough cold flu season and lower discretionary sales[19] - Boots UK comparable pharmacy sales increased by 10.9%, and retail sales grew by 8.1%, with Boots.com sales up 30%[4] Adjustments and Non-GAAP Measures - Total adjustments to operating loss were $838 million in Q1 2024, up from $726 million in Q1 2023[27] - Footprint optimization charges were $333 million in Q1 2024, primarily related to restructuring activities[27][28] - Acquisition-related amortization was $269 million in Q1 2024, compared to $275 million in Q1 2023[27][28] - Loss on certain non-hedging derivatives was $200 million in Q1 2024, down from $366 million in Q1 2023[27] - VillageMD debt amendment resulted in a $137 million pre-tax non-controlling interest benefit in Q1 2024[27][30] - The company does not provide a reconciliation for non-GAAP estimates to GAAP financial measures on a forward-looking basis due to inherent difficulties in forecasting[58] - Comparable sales, pharmacy sales, and retail sales for the International segment are presented on a constant currency basis, a non-GAAP financial measure[60] Gross Profit and Margins - Adjusted gross profit for the same period was $6.812 billion, with U.S. Retail Pharmacy at $5.251 billion, International at $1.303 billion, and U.S. Healthcare at $253 million[31] - Adjusted gross profit for the three months ended November 30, 2023, was $6.850 billion, with U.S. Retail Pharmacy at $5.493 billion, International at $1.211 billion, and U.S. Healthcare at $146 million[33] - Gross margin (GAAP) for U.S. Retail Pharmacy was 17.0%, International 20.3%, and U.S. Healthcare 11.0% for the three months ended November 30, 2024[31] - Gross margin (GAAP) for U.S. Retail Pharmacy was 18.8%, International 20.8%, and U.S. Healthcare 6.5% for the three months ended November 30, 2023[33] - Adjusted operating margin (Non-GAAP) for the three months ended November 30, 2024, was 1.2% for U.S. Retail Pharmacy, 2.6% for International, and 1.2% for U.S. Healthcare[31] Other Financial Metrics - Weighted average common shares outstanding, diluted were 865.6 million in Q1 2024, up from 864.0 million in Q1 2023[27] - Adjusted effective tax rate excluding adjusted equity earnings (loss) in Cencora was 28.0% compared to 24.7% in the year-ago quarter[38] - Equity earnings (loss) in Cencora (GAAP) was $(9) million compared to $42 million in the year-ago quarter[37] - Depreciation and amortization expenses increased to $625 million in 2024 from $616 million in 2023[56]

Financial Performance and Sales - Walgreens Boots Alliance reported fiscal 2024 sales of $147.7 billion, with a presence in 8 countries and approximately 312,000 employees[11] - In fiscal 2024, the U.S. Retail Pharmacy segment generated $115.8 billion in sales, the International segment $23.6 billion, and the U.S. Healthcare segment $8.3 billion[24] - Pharmacy sales accounted for 77% of the U.S. Retail Pharmacy segment's total sales in fiscal 2024, up from 74% in the previous two fiscal years[33] - The International segment's sales composition for fiscal 2024 was 15% Pharmacy, 34% Retail, and 51% Wholesale[45] - The U.S. Healthcare segment's fiscal 2024 sales composition was 75% VillageMD, 7% Shields, and 17% CareCentrix[49] - The company's businesses are seasonal, with the second fiscal quarter (December, January, and February) typically generating higher retail sales and earnings[175] Retail and Pharmacy Operations - The company operates approximately 12,500 retail pharmacy locations across the U.S., Europe, and Latin America[12] - The U.S. Retail Pharmacy segment filled 796 million prescriptions (including vaccinations) in fiscal 2024, with adjusted 30-day equivalents reaching 1.2 billion[33] - Approximately 78% of the U.S. population lives within five miles of a Walgreens or Duane Reade retail pharmacy as of August 31, 2024[26] - The myWalgreens customer loyalty program had approximately 124 million members as of August 31, 2024[30] - Approximately 97% of the U.S. Retail Pharmacy segment's Pharmacy sales in fiscal 2024 were reimbursed by managed care organizations, governmental agencies, PBMs, and private insurance[33] - The International segment operated 3,688 retail stores and opticians locations as of August 31, 2024, with a strong omni-channel platform[40] - The Boots Advantage Card loyalty program had approximately 15 million active members as of August 31, 2024[42] - The Company's 90-day at retail prescription drug offering is typically at a lower margin than comparable 30-day prescriptions but helps increase business with chronic patients[38] - Specialty pharmacy represents a significant and growing portion of U.S. prescription drug spending, and the company's ability to access key drugs and penetrate key treatment categories is critical for future growth[122] - The company must continuously develop and maintain a relevant omni-channel experience to meet evolving customer expectations and compete effectively in the retail market[124] Healthcare Services and Expansion - The company is expanding its healthcare services, including primary, multi-specialty, and urgent care, across traditional clinic settings, patients' homes, and virtual platforms[12] - Walgreens Boots Alliance is focusing on value-based care, aiming to integrate pharmacy and medical care to improve health outcomes and reduce costs[22] - Medicare Part D plans and Medicaid public assistance programs contributed to approximately 29% and 5%, respectively, of the segment's fiscal 2024 sales[34] - The U.S. Healthcare segment faces risks related to payor contracts, including modifications or discontinuations, which could negatively impact business operations[89] - The company's healthcare businesses rely on value-based contracts with payors, which could lead to financial losses if medical costs exceed estimates[115] - The U.S. Healthcare segment faces significant risks from medical malpractice claims, which could result in substantial expenses and damage awards, potentially exceeding insurance coverage limits[111][112] - The U.S. Healthcare segment's revenue is highly dependent on Medicare and Medicare Advantage plans, with recent changes in Medicare reimbursement models negatively impacting the segment[112] Employee and Workforce Management - The Company employed approximately 312,000 persons globally as of August 31, 2024, with 245,000 based in the U.S. and 51,000 in the UK[61] - The company offers comprehensive benefits including healthcare coverage, insurance, digital well-being programs, and paid time off for U.S. employees[64] - The company scored 100% on the Disability Equality Index for disability inclusion in fiscal 2024[68] - The company provides global employee engagement surveys to measure and improve engagement[67] - The company offers training and development programs through Walgreens University in the U.S. and apprenticeship programs in the UK[66] - The company conducts bi-annual employee surveys to evaluate wellness offerings[64] - The company provides monthly health and safety incident reports to select executives[69] - The company's U.S. workforce racial, ethnic, and gender composition is disclosed through the EEO-1 report[68] - The company has a talent management process to identify and assess talent across the organization[66] - The company prohibits discrimination and racial profiling, with training programs to eliminate unconscious bias[68] - The company offers on-demand self-paced learning resources globally for all employees[66] Supply Chain and Operational Risks - Disruption in the global supply chain could negatively impact the company's ability to provide products and services, affecting financial performance[88] - The company relies on a single wholesaler for branded and generic pharmaceutical drugs, posing a supply chain risk[88] - The company's retail sales are impacted by competitive pricing actions, promotional offers, and customer demand for value and convenience[46] - The company's wholesale sales are influenced by government actions aimed at reducing prescription drug consumption and increasing generic drug utilization[46] - Supply chain disruptions, including those caused by health epidemics, labor disputes, natural disasters, or geopolitical conflicts, could adversely affect product availability and financial performance[132][133] - The company relies on a single wholesaler, Cencora, for branded and generic pharmaceutical products, and any operational or financial difficulties faced by Cencora could negatively impact the company's business[135][136] - Labor challenges, including difficulties in attracting and retaining qualified pharmacists, have reduced service quality and negatively impacted financial performance in the U.S. Retail Pharmacy segment[142] Financial Risks and Impairments - The company recorded $12.4 billion of non-cash impairment charges related to VillageMD goodwill in Q2 fiscal 2024[174] - The company recorded $332 million of non-cash impairment charges related to CareCentrix goodwill in Q4 fiscal 2024[174] - The company had $15.5 billion of goodwill and $13.0 billion of other intangible assets on its Consolidated Balance Sheets as of August 31, 2024[174] - Significant outstanding debt of approximately $9.5 billion as of August 31, 2024[167] - Quarterly dividend payment reduced by 48% in Q2 fiscal 2024 as part of capital allocation strategy[172] - Investments in non-controlled companies expose the company to operational and financial risks[155] - The company is evaluating strategic options for its investment in VillageMD, including potential sales or restructuring, due to ongoing cash requirements and operational challenges[152] - Potential future impairments may materially impact financial condition and results of operations[153] - Considering sale of other businesses or monetization opportunities, subject to global financial market conditions[153] Regulatory and Compliance Risks - The company is subject to evolving ESG and climate-related regulatory requirements, with potential challenges in meeting standards[89] - The company faces increased compliance costs due to evolving ESG and climate-related regulatory requirements, including the SEC's climate reporting rules and the EU's CSRD, which may impact financial performance[131] - The company is subject to risks from changes in public policy and regulatory environments, including potential reductions in governmental funding for healthcare services[181] - The company is involved in legal proceedings, including opioid-related litigation, and has incurred significant expenses to resolve these matters[184] - The company is subject to extensive regulation by national, state, and local government agencies, which could result in significant legal and financial exposure if compliance is not met[189] - The company recognized an additional $2.3 billion valuation allowance against certain U.S. and state deferred tax assets due to cumulative losses in the U.S., primarily related to opioid settlements reached in fiscal 2023[196] - The company is subject to a proposed 15% global minimum tax under the OECD Pillar Two, Global Anti-Base Erosion Rules, which could adversely affect its effective tax rate and financial condition[194] - The company faces risks related to product liability, recalls, and health and safety issues, including potential financial liability and reputational damage from defective or counterfeit products[193] - The company is exposed to risks from violations of anti-bribery, anti-corruption, and international trade laws, which could result in penalties, fines, and reputational harm[192] Cybersecurity and Data Privacy - Cybersecurity and data privacy risks could harm reputation and business operations[156][157][161][162][164] - Compliance with privacy and data protection laws may result in significant expenses and potential fines[160][161] - Payment-related risks could increase operating costs and expose the company to fraud or theft[165][166] - Reliance on third-party payment processors and potential system compromises could disrupt business operations[166] - The company's cybersecurity strategy includes a comprehensive Data Security Event Plan (DSEP) to manage incidents involving unauthorized access to sensitive data[208] - The company's Chief Information Security Officer (CISO) collaborates with Legal, Privacy, and Technology Risk teams to coordinate incident response and policy design[207] - The company's Technology, Risk, and Compliance (TRC) function ensures compliance with critical security-related regulatory requirements, including HIPAA and PCI-DSS[206] - The company's Information Security program is aligned with the National Institute of Standards and Technology Cybersecurity Framework to address current and emerging cybersecurity risks[205] Corporate Governance and Leadership - The company's certificate of incorporation and bylaws, along with Delaware law, may impede stockholder efforts to change the Board or facilitate a takeover[202] - Stefano Pessina, the Executive Chairman, holds approximately 17% of the company's outstanding common stock, giving him significant voting influence over stockholder matters[197] - Leadership transitions, including the integration of a new CEO and senior management team, may cause disruptions and divert attention from financial and operational goals[137][138] Environmental, Social, and Governance (ESG) - The company faces increasing interest in ESG-related values from employees, customers, and stockholders, and failure to meet ESG goals could negatively impact its reputation and stock price[128][129][130] - Climate change poses risks to the company's operations, including extreme weather events that could disrupt supply chains, damage facilities, and increase costs for utilities like natural gas and electricity[143] - The company is exposed to risks associated with foreign currency exchange rate fluctuations, with a significant proportion of net assets and income in non-U.S. dollar currencies[176] - The company may use foreign currency contracts or other derivative instruments to hedge foreign currency fluctuation risks, but these may not fully offset adverse financial effects[177] - The company operates defined benefit pension plans in the UK, which are sensitive to changes in financial markets, corporate bond yields, and longevity rates[178] Growth Strategy and Acquisitions - The company's growth strategy involves acquisitions and partnerships, such as VillageMD and Shields, but integration challenges and unanticipated costs could adversely impact financial performance[147][148] - The company's investment in Cencora, representing 10.2% of outstanding shares, is subject to market risks and restrictions, which could materially affect financial condition and results of operations[150] - The company is evaluating strategic options for its investment in VillageMD, including potential sales or restructuring, due to ongoing cash requirements and operational challenges[152] - The company's ability to maintain or open new store locations is challenged by local regulations, real estate costs, and changing demographics, which could adversely affect results of operations[139][140]

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) Q4 2024 Earnings Call Transcript October 15, 2024 8:30 AM ET Company Participants Tiffany Kanaga - VP of Global IR Tim Wentworth - CEO Manmohan Mahajan - Global CFO Mary Langowski - President, US Healthcare Conference Call Participants Lisa Gill - JPMorgan Ann Hynes - Mizuho Group George Hill - Deutsche Bank Charles Rhyee - TD Securities Eric Percher - Nephron Research Kevin Caliendo - UBS Elizabeth Anderson - Evercore ISI Michael Cherny - Leerink Partners Stephan ...

Financial Performance - Fiscal Year 2024 - Sales increased by 6.2% to $147.658 billion[13] - Adjusted operating income decreased by 32.2% to $2.624 billion[13] - GAAP net loss was $8.636 billion, compared to a net loss of $3.080 billion in FY23[13] - Adjusted EPS decreased by 27.6% to $2.88[13] Financial Performance - Fourth Quarter 2024 - Sales increased by 6.0% to $37.547 billion[11] - Adjusted operating income decreased by 37.9% to $424 million[11] - GAAP net loss was $3.005 billion, compared to a net loss of $180 million in 4Q23[11] - Adjusted EPS decreased by 41.0% to $0.39[11] U.S. Retail Pharmacy - Fourth Quarter 2024 - Sales increased by 6.5% to $29.470 billion[14] - Adjusted operating income decreased by 60.4% to $220 million[14] - Comparable pharmacy sales increased by 11.7% primarily due to brand inflation and mix impacts[15] - Comparable scripts increased by 2.5%, and excluding immunizations, comparable scripts increased by 2.6%[15] U.S. Retail - Fourth Quarter 2024 - Total retail sales decreased by 3.5%[17] - Comparable retail sales decreased by 1.7%, reflecting a challenging retail environment and continued channel shift[17] International - Fourth Quarter 2024 - Sales increased by 3.7% to $5.971 billion, driven by Germany wholesale and Boots UK[19] - Adjusted operating income decreased by 10.6% to $231 million, mainly due to lapping real estate gains in the year-ago period[19] U.S. Healthcare - Fourth Quarter 2024 - Sales were $2.1 billion, led by VillageMD ($1.5 billion), CareCentrix ($0.4 billion), and Shields ($0.2 billion)[22] - Sales growth was +7%, led by VillageMD +7% and Shields +28%[22] - Adjusted EBITDA improved by $94 million compared to 4Q23, driven by cost savings at VillageMD and growth at Shields[22] FY25 Guidance - Adjusted EPS is expected to be between $1.40 and $1.80[27] - The company expects to close approximately 1,200 locations over the next three years, with approximately 500 in FY25[29] - The company expects sales between $147.0 and $151.0 billion[30]

Exhibit 99.1 1 Walgreens Boots Alliance Reports Fiscal Year 2024 Earnings Fourth Quarter In Line with Expectations; Announces Accretive Footprint Optimization Program Fourth quarter financial results • Fourth quarter loss per share 1 was $3.48 versus loss per share of $0.21 in the year-ago quarter. Loss per share in the current quarter includes a non-cash charge for valuation allowance on deferred tax assets primarily related to opioid liabilities recognized in prior periods, and non-cash impairment charges ...