Walgreens Boots Alliance(US:WBA)2025-01-10 16:53Financial 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]