Walgreens Boots Alliance
- Walgreens Boots Alliance is an integrated healthcare, pharmacy and retail leader.
- WBA is retail pharmacy with approximately 13,000 locations across the U.S., Europe and Latin America.
- No7 Beauty Company is a beauty brand available online and in more than 20,000 retail outlets in 16 markets worldwide.
Walgreens Boots Alliance (Nasdaq: WBA, ) is an integrated healthcare, pharmacy and retail leader serving millions of customers and patients every day. Walgreens Boots Alliance global innovator in retail pharmacy with approximately 13,000 locations across the U.S., Europe and Latin America.
WBA decrease ownership in AmerisourceBergen
NOVEMBER 07, 2022; Walgreens Boots Alliance, Inc. announced that it has commenced an offering of 10 million shares of AmerisourceBergen Corporation (NYSE: ABC) common stock in a registered public offering and, subject to the completion of the offering, a concurrent share repurchases by AmerisourceBergen in the amount of approximately $500 million.
After the sale, Walgreens Boots Alliance’s ownership of AmerisourceBergen’s common stock has decreased from approximately 26 percent to approximately 20 percent.
Walgreens Boots Alliance intends to use the proceeds primarily for debt paydown and the continued support of the company’s strategic priorities, including acquisitions.
WBA Accelerates Full Acquisition Of CareCentrix
OCTOBER 11, 2022; Walgreens Boots Alliance, Inc. announced the acceleration of its plans to acquire full ownership of CareCentrix (CCX Next, LLC), expanding its reach into the growing homecare sector and advancing its healthcare long-term growth strategy.
WBA has entered into a definitive agreement to acquire the remaining 45% stake for approximately $392 million, which is based on the exit multiple agreed to at the time of WBA's initial majority investment announcement in CareCentrix.
CareCentrix is an industry leader in the $75 billion post-acute and home care industry, providing care coordination and outsourced benefit management services. WBA’s full acquisition of CareCentrix follows WBA’s 55% majority investment in the company, which closed on August 31, 2022. The full acquisition is subject to limited customary closing conditions and is expected to close by March 2023.
Fiscal 2023 First Quarter Results
JANUARY 05, 2023; Walgreens Boots Alliance, Inc. announced financial results for the first quarter of fiscal 2023, which ended November 30, 2022.
WBA first quarter sales decreased 1.5 percent from the year-ago quarter to $33.4 billion, an increase of 1.1 percent on a constant currency basis. Excluding the negative impact from AllianceRx Walgreens of 485 basis points and the positive contributions from U.S. Healthcare M&A of 280 basis points, sales growth was 3.2 percent on a constant currency basis.
Operating loss was $6.2 billion in the first quarter compared to operating income of $1.3 billion in the year-ago quarter. Operating loss in the quarter reflects a $6.5 billion pre-tax charge for opioid-related claims and litigation. Adjusted operating income was $1.0 billion, a decrease of 42.2 percent on a constant currency basis, reflecting lower volumes of COVID-19 vaccinations and testing compared to the peak prior year period, planned payroll and IT investments in U.S. Retail Pharmacy and growth investments in U.S. Healthcare. This was partly offset by improved retail contributions in the U.S. and International.
Net loss in the first quarter was $3.7 billion compared to net income of $3.6 billion in the year-ago quarter. This decrease is driven by a $5.2 billion after-tax charge for opioid-related claims and litigation offset by a $0.9 billion after-tax gain from the partial sale of the Company's equity method investment in AmerisourceBergen during the first quarter; and lapping $2.5 billion after-tax gain on the Company's investments in VillageMD and Shields Health Solutions in the year-ago quarter. Adjusted net earnings was $1.0 billion, down 30.2 percent on a constant currency basis, primarily driven by lower adjusted operating income partly offset by the favorable impact of a lower tax rate compared with the year-ago quarter primarily due to the release of valuation allowance related to capital loss carryforwards.
Loss per share in the first quarter was $4.31, compared to earnings per share of $4.13 in the year-ago quarter. Adjusted earnings per share decreased 30.8 percent to $1.16, reflecting a decrease of 29.9 percent on a constant currency basis.
Net cash provided by operating activities was $493 million in the first quarter. Operating cash flow was negatively impacted by increased inventory build for the U.S. and UK holiday season. Free cash flow was negative $117 million, a $762 million decrease compared with the year-ago quarter primarily driven by lower earnings versus the prior year quarter, phasing of working capital, and increased capital expenditures in growth initiatives, including the VillageMD footprint expansion, the rollout of micro-fulfillment centers, and digital transformation initiatives.
The U.S. Retail Pharmacy segment had first quarter sales of $27.2 billion, a decrease of 3.0 percent from the year-ago quarter. Comparable sales increased 3.8 percent from the year-ago quarter while lapping strong comparable sales of 7.9 percent in the year-ago quarter. The year-ago quarter included a significant contribution from COVID-19 vaccinations.
The International segment had first quarter sales of $5.2 billion, a decrease of 10.8 percent from the year-ago quarter, held back by an adverse currency impact of 15.4 percent. Sales increased 4.6 percent on a constant currency basis, with Boots UK sales growing 4.3 percent, and the Company's Germany wholesale business growing 4.2 percent.
The U.S. Healthcare segment had first quarter sales of $989 million, an increase of $938 million compared to the prior year period. On a pro forma basis, this segment's businesses grew sales at a combined rate of 38.4 percent in the quarter. VillageMD grew 48.7 percent, reflecting existing clinic growth and clinic footprint expansion. Shields grew 44.1 percent, driven by recent contract wins, further expansion of existing partnerships, and strong executional focus. CareCentrix grew 22.3 percent as a result of additional service offerings with existing partners.
Walgreens Boots Alliance, Inc. is a global leader in retail pharmacy.
U.S. Retail Pharmacy
The Company’s U.S. Retail Pharmacy segment includes the Walgreens business which is comprised of the operations of retail drugstores, health and wellness services, specialty and home delivery pharmacy services, and its equity method investment in AmerisourceBergen. Sales for the segment are principally derived from the sale of prescription drugs and a wide assortment of retail products, including health and wellness, beauty, personal care and consumables and general merchandise.
The Company’s U.S. Healthcare segment, created at the beginning of fiscal 2022, is a consumer-centric, technology-enabled healthcare business that engages consumers through a personalized, omni-channel experience across the care journey. The U.S. Healthcare segment delivers improved health outcomes and lower costs for payors and providers by delivering care through owned and partnered assets.
The U.S. Healthcare segment currently consists of a majority position in Village Practice Management Company, LLC , a leading, national provider of value-based primary care services; a majority position in Shields Health Solutions Parent, LLC , a specialty pharmacy integrator and accelerator for hospitals, a majority position in CCX Next, LLC , a leading player in the post-acute and home care management sectors; and the Walgreens Health organic business that contracts with payors and providers to deliver clinical healthcare services to their members and members’ caregivers through both digital and physical channels. On September 20, 2022, the Company announced that it entered into a definitive agreement to acquire the remaining 30% equity interest in Shields, not currently owned.
The Company’s International segment consists of pharmacy-led health and beauty retail businesses outside the U.S. and the Company’s pharmaceutical wholesale and distribution business in Germany. Pharmacy-led health and beauty retail businesses include Boots branded stores in the UK, the Republic of Ireland and Thailand, the Benavides brand in Mexico and the Ahumada brand in Chile. Sales for these businesses are principally derived from the sale of prescription drugs and health and wellness, beauty, personal care and other consumer products.
No7 Beauty Company
The company's company has a portfolio of highly regarded beauty brands available online and in more than 20,000 retail outlets in 16 markets worldwide.
The company has 170+ years of history.
|John Boot opens first Boots store, selling herbal remedies, in Goose Gate, Nottingham, UK
|Maison Thomas pharmaceutical distributor is founded in Agen, France
|Interpharm pharmaceutical distributor created in The Netherlands
|Charles R. Walgreen Sr. purchases the drugstore where he worked as a pharmacist in Chicago, U.S.
|Walgreen Co. is formed and the drugstore chain expansion begins with the opening of its second store
|Edgar Moss opens his first Moss Chemists store in Middlesex, UK
|S.A.F.A. pharmaceutical distributor is created in Spain
|Walgreens invents the malted milkshake
Walgreens stock becomes publicly traded
Boots acquires Beeston site in Nottingham
|Walgreens stock is listed on the New York Stock Exchange
|Walgreens enters the Puerto Rico market
Walgreens opens its first drugstore with a drive-thru pharmacy
UniChem purchases Moss Chemists in the UK
Alliance Santé group is formed from the merger between Alleanza Salute Italia and French pharmaceutical wholesalers ERPI and IFP
|Alliance UniChem is formed from the merger of Unichem and Alliance Santé
Alliance UniChem acquires S.A.F.A. in Spain
Boots becomes the largest retail pharmacy chain in Ireland
Walgreens opens its 3,000th store in Chicago
Alliance UniChem commences acquisition of Alliance Apotekene pharmacies in Norway and acquires 25 percent stake in Turkish pharmaceutical wholesaler, Hedef
Alliance UniChem acquires Interpharm pharmaceutical wholesaler and De Vier Vijzels pharmacy chain in The Netherlands
Walgreens becomes the first drugstore to offer prescription labels in multiple languages chainwide
Alliance UniChem increases its stake in Hedef Alliance to 50 percent
|Alliance UniChem acquires 29.99 percent of German pharmaceutical wholesaler ANZAG
Alliance UniChem merges with Boots Group to form Alliance Boots
Walgreens acquires Happy Harry's drugstore chain
Walgreens begins offering in-store health clinics
|Alliance Boots forms a 50:50 joint venture with Guangzhou Pharmaceuticals Corporation, a major pharmaceutical wholesaler in China
|Merger of Boots Opticians and Dollond & Aitchison to form the second largest optical chain in the UK
Alliance Boots becomes the majority shareholder in Hedef Alliance
Alliance Boots become the majority shareholder in ANZAG
Walgreens completes its acquisition of the New York-based Duane Reade drugstore chain
Walgreens opens its first Well Experience format in stores
Duane Reade opens 24-hour flagship store in New York at 40 Wall Street
Walgreens acquires drugstore.com and Beauty.com
Walgreens acquires a 45 percent stake in Alliance Boots, taking the first step in the strategic partnership to create the first global pharmacy-led, health and well-being enterprise
Walgreens opens its 8,000th store in Los Angeles and acquires USA Drug, a pharmacy chain in the mid-South U.S.
Walgreens and Alliance Boots form Walgreens Boots Alliance Development joint venture in Bern, Switzerland
Alliance Boots completes the acquisition of a 12 percent stake in Nanjing Pharmaceutical Company Limited, a major Chinese pharmaceutical wholesaler
Alliance Boots completes acquisition of Farmacias Benavides in Mexico and Farmacias Ahumada in Chile
Walgreens Boots Alliance enters into long-term global supply chain agreement with Fareva
Walgreens Boots Alliance receives regulatory clearance to purchase 1,942 Rite Aid drugstores in the U.S.
|In July, the company completed an acquisition to acquire a 40 percent minority stake in GuoDa, a leading retail pharmacy chain in China.
|In June, Walgreens Boots Alliance, Inc. completed the sale of its Alliance Healthcare businesses to AmerisourceBergen Corporation
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