Walgreens Boots Alliance, Inc. has reported its financial results for the third quarter of fiscal 2024, which concluded on May 31, 2024. The company experienced a 2.6% increase in sales compared to the same quarter last year, totaling $36.4 billion. On a constant currency basis, this growth was 2.5%, driven by increased sales across all segments.
CEO Tim Wentworth addressed the challenging operating environment, highlighting persistent pressures on the US consumer and adverse marketplace dynamics affecting pharmacy margins. Despite these headwinds, both the International and US Healthcare segments performed well. Wentworth emphasized the company’s focus on enhancing its core retail pharmacy business, which is pivotal for the future of healthcare. He expressed confidence in the company’s strategic direction and its ability to navigate and overcome current challenges.
Operating income for the third quarter reached $111 million, a significant improvement from the $477 million operating loss in the same period last year. This $588 million increase reflects the absence of a $431 million non-cash impairment of pharmacy license intangible assets in Boots UK that impacted the previous year’s results.
In the International segment, third-quarter sales were $5.7 billion, up 2.8% from the previous year, including a 1.1% positive currency impact. On a constant currency basis, sales increased by 1.6%, driven by a 4.9% growth in the Germany wholesale business and a 1.6% increase in Boots UK sales. Comparable pharmacy sales for Boots UK rose 5.8% on a constant currency basis, while comparable retail sales grew by 6.0%, reflecting broad category growth and an increased market share. Boots.com also showed strong performance, with sales rising by 13.8%, accounting for 15.6% of Boots’ total retail sales.
Despite these sales increases, adjusted operating income for the International segment fell by 15.8% to $175 million, a 16.6% decrease on a constant currency basis, due to the impact of real estate gains in the prior year.
