Chief Executive Officer Rosalind Brewer said: “First quarter results exceeded our expectations, with a very encouraging performance across all our business segments. I am particularly excited about the progress we’re making in building out Walgreens Health.
"Our majority investments in VillageMD and Shields closed during the quarter, and we’re rolling out VillageMD primary care co-locations and Walgreens Health Corners at pace. The strong start to the fiscal year reinforces our confidence in the future, and as a result, we are raising our guidance for the full year and increasing investments in our people. Looking ahead, we are well positioned for sustainable, long-term value creation.â€
WBA first quarter sales from continuing operations increased 7.8 percent from the year-ago quarter to $33.9 billion, an increase of 7.6 percent on a constant currency basis, reflecting strong comparable sales growth at Walgreens and in the International segment.
Operating income from continuing operations was $1.3 billion in the first quarter compared to an operating loss of $535 million in the year-ago quarter. This was partly driven by a $1.5 billion charge from the company's equity earnings in AmerisourceBergen in the year ago quarter.
Adjusted operating income from continuing operations was $1.8 billion, an increase of 48.5 percent on a constant currency basis. The increases reflect strong adjusted gross profit growth across both pharmacy and retail in the United States and a continued rebound in International segment sales and profitability.
Net earnings from continuing operations were $3.6 billion in the first quarter compared to a loss of $391 million from the year-ago quarter, reflecting a $2.5 billion after-tax gain due to the valuation of the company's previously held minority equity and debt investments in VillageMD and Shields in the three months ended November 30, 2021, and a $1.2 billion charge, net of tax, from the company's equity earnings in AmerisourceBergen in the year ago quarter.
Adjusted net earnings from continuing operations increased to $1.5 billion, up 53.5 percent on a reported and constant currency basis compared with the year-ago quarter.
EPS from continuing operations in the first quarter was $4.13, compared with a loss of $0.45 in the year-ago quarter. Adjusted EPS from continuing operations was $1.68, an increase of 53.2 percent on a reported basis and an increase of 53.1 percent on a constant currency basis.
Net cash provided by operating activities was $1.1 billion in the first quarter and free cash flow was $645 million, a $118 million decrease compared with the year-ago quarter primarily driven by phasing of working capital, COVID-19 related government support in the year-ago quarter and increased capital expenditures. ■