Walgreens Boots Alliance announced financial results for the second quarter of fiscal year 2016 that ended 29 February 2016.
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Fiscal 2016 second quarter net earnings attributable to Walgreens Boots Alliance determined in accordance with GAAP decreased 54.5 percent to $0.9 billion compared with the same quarter a year ago, while GAAP net earnings attributable to Walgreens Boots Alliance per diluted share decreased 56.0 percent to $0.85 compared with the same quarter a year ago.
The decreases in GAAP net earnings and GAAP net earnings per share were due to last year’s second quarter non-cash gain of $814 million, or $0.77 cents per diluted share, associated with the remeasurement to fair value on 31 December 2014 of the company’s previously-held equity investment in Alliance Boots, and fluctuations in the quarterly fair value adjustments of the company’s AmerisourceBergen warrants.
Adjusted fiscal 2016 second quarter net earnings attributable to Walgreens Boots Alliance1 increased 14.4 percent to $1.4 billion compared with the same quarter a year ago.
Adjusted net earnings attributable to Walgreens Boots Alliance per diluted share for the quarter increased 11.0 percent to $1.31 compared with the same quarter a year ago. Fiscal 2016 second quarter earnings adjustments were a net increase to GAAP net earnings attributable to Walgreens Boots Alliance of $493 million or 46 cents per diluted share.
Net sales in the second quarter increased 13.6 percent to $30.2 billion compared with the same quarter a year ago, largely due to the full consolidation of Alliance Boots for the entire quarter this year, while foreign currency translation adversely impacted sales by approximately $750 million or 2.4 percent.
Combined net synergies were $329 million in the fiscal 2016 second quarter and $617 million in the first six months of fiscal 2016.
The company continues to expect to reach at least $1.0 billion in combined net synergies in fiscal 2016 relating to the strategic combination with Alliance Boots.
This excludes the synergy benefits related to the company’s strategic, long-term relationship with AmerisourceBergen, the benefits of refinancing the legacy Alliance Boots indebtedness at a lower cost and the proposed Rite Aid acquisition.
Walgreens Boots Alliance GAAP operating cash flow totaled $2.4 billion in the second quarter, while the company generated free cash flow of $2.0 billion in the quarter.
Walgreens Boots Alliance has sold its local pharmaceutical wholesale business, Alliance Healthcare Russia, to Russian health and beauty retailer 36.6.