Walgreens boosted its fourth quarter results, as the company continues to prepare to divest stores to pave the way for its acquisition of Rite Aid.
For the fourth quarter ended August 31, Walgreens Boots Alliance posted company net earnings of $1.04 billion, or 95 cents per diluted share, up from $26 million, or two cents per diluted share, in the period a year earlier as it has continued to build and expand on strategic partnerships.
Adjusted fiscal fourth quarter company net earnings were $1.17 billion, or $1.07 per diluted share, versus $969 million, or 88 cents per diluted share, in the prior-year period.
Fourth quarter sales were $28.64 billion, an increase of 0.4% over the year-ago quarter, or 2.5% on a constant currency basis. Operating income was $1.14 billion, up 36.4% from the quarter a year previous. Adjusted operating income in the fourth quarter was $1.56 billion, up 7.2% year over year.
The retail pharmacy USA division posted a comparable store sales gain of 3.2% while revenues overall increased 4% to $20.7 billion. Comparable pharmacy sales increased 5%, however, general merchandise comps decreased 0.3%, primarily due to lower revenues from certain consumables and seasonal items partially offset by higher sales in the health and wellness, and beauty categories.
For the full fiscal year, company net earnings were $4.17 billion, or $3.82 per diluted share, versus $4.22 billion, or $4 per diluted share, in the year earlier. Sales increased to $117.35 billion from $103.44 billion in the fiscal year prior. Operating income was $6 billion versus $4.67 billion in the 2015 quarter. Adjusted operating income was $7.21 versus $6.16 billion in the quarter a year before.
Stefano Pessina, Walgreens Boots executive vice chairman and CEO, stated, “We have continued to make good progress in putting in place the building blocks for the future growth of the business. We believe this can help provide growth for our own company and that of our strategic partners while delivering better, more efficient and more effective service to patients and payers alike.”
Walgreens operates 13,200 stores in 11 countries.
