© Reuters. FILE PHOTO: An individual is seen buying in Walgreens, owned by the Walgreens Boots Alliance, Inc., in Manhattan, New York Metropolis, U.S., November 26, 2021. REUTERS/Andrew Kelly/File Photograph
(Reuters) – Walgreens Boots Alliance (NASDAQ:) on Thursday reported better-than-expected quarterly revenue, as cost-cut measures and better drug costs boosted its pharmacy operations, and the corporate practically halved its dividend to speed up its financial savings measures.
Shares of the Deerfield-Illinois based mostly firm rose greater than 3% because the U.S. pharmacy large minimize dividend fee by 48% to 25 cents per share.
The inventory misplaced about 30% in 2023. Fierce competitors from rivals, sharply decrease gross sales from COVID vaccines and testing, and decreased discretionary spending by inflation-weary customers, have compelled the corporate to shut unprofitable shops and minimize jobs.
Walgreens first-quarter efficiency displays “disciplined execution in a difficult shopper backdrop,” mentioned CEO Tim Wentworth.
“We’re evaluating all strategic choices to drive sustainable long-term shareholder worth, specializing in swift actions to right-size prices and improve money stream,” Wentworth mentioned.
The corporate appointed the healthcare business veteran in October as its CEO. It’s seeking to emerge from the troubles surrounding it and increase its footprint in healthcare providers.
Its U.S. retail pharmacy unit introduced in income of $28.94 billion within the first quarter, topping analysts’ common estimate of $27.26 billion.
On an adjusted foundation, the corporate reported earnings of 66 cents per share for the quarter, above the typical analyst estimate of 61 cents per share, in keeping with LSEG information.
The corporate’s healthcare providers unit garnered income of $1.93 billion, in contrast with analysts’ common estimate of $2.03 billion.
Identical-store gross sales at its U.S. retail pharmacies elevated 13.1% year-over-year, aided by increased drug costs and powerful execution in pharmacy providers.
