Walgreens Boots Alliance raises outlook as Q3 beats expectations

Walgreens Boots Alliance raises outlook as Q3 beats expectations

THE WHAT? Walgreens Boots Alliance has raised its full-year guidance to around 10 percent EPS growth after its third quarter results beat expectations.

THE DETAILS The pharmacy giant reported earnings per share of US$1.38, including discontinued operations, compared to a loss of US$1.95 in the prior-year period; total adjusted EPS soared 83.4 percent to US$1.51.

Sales swelled 12.1 percent in the three months to May 31, 2021 compared to the year-ago quarter hitting US$34 billion. Boots UK comparable sales increased 38.7 percent yoy with WBA noting that footfall on the high street showed early signs of recovery.

THE WHY? The company attributed its strong sales growth to the JV set up in Germany during the fiscal year and a solid show from the US segment. Chief Executive Officer Rosalind Brewer said, “This quarter’s results demonstrate continued momentum, and while challenges lie ahead, we are in a strong position to grow and innovate our core retail and pharmacy businesses for the future. We are accelerating our investments to advance our operational excellence, including technology innovations that support mass personalization, pharmacy of the future and the next phase of growth in tech-enabled healthcare. These investments are fueled by our Alliance Healthcare divestiture. I remain proud of our team members and the essential role they are playing to help end the pandemic as the communities we serve continue to turn to our trusted brands and expert pharmacists.”