Walgreens Boots Alliance (WBA) announced financial results for the second quarter and first six months of fiscal year 2015 ending February 28, 2015.
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This is the first earnings announcement for Walgreens Boots Alliance since the December 31, 2014 strategic combination of Walgreen Co. and Alliance Boots GmbH.
Net earnings attributable to Walgreens Boots Alliance determined in accordance with GAAP for the fiscal 2015 second quarter increased 185.2 percent to $2 billion compared with the same quarter a year ago, while GAAP net earnings per diluted share increased 160.8 percent to $1.93 compared with the same quarter a year ago.
Adjusted fiscal 2015 second quarter net earnings attributable to Walgreens Boots Alliance increased 33.2 percent to $1.2 billion compared with the same quarter a year ago.
Adjusted net earnings per diluted share for the quarter increased 21.6 percent to $1.18 compared with the same quarter a year ago. This year's second quarter earnings adjustments reduced GAAP net earnings by $798 million or 75 cents per diluted share.
Net sales in the second quarter increased 35.5 percent to $26.6 billion compared with the same quarter a year ago, largely due to the inclusion of Alliance Boots for January and February.
In the first six months of fiscal year 2015, GAAP net earnings attributable to Walgreens Boots Alliance increased 101.0 percent to $2.9 billion compared with the same period a year ago, while GAAP net earnings attributable to Walgreens Boots Alliance per diluted share increased 93.3 percent to $2.88 compared with the same period a year ago.
Adjusted net earnings attributable to Walgreens Boots Alliance for the first six months of fiscal 2015 increased 22.9 percent to $2.0 billion compared with the same period a year ago.
Adjusted net earnings per diluted share for the six months increased 17.2 percent to $1.98 compared with the same period a year ago. Earnings adjustments in the first six months of the fiscal year reduced GAAP net earnings by $899 million or 90 cents per diluted share.
Net sales in the first six months of fiscal 2015 increased 21.6 percent to $46.1 billion compared with the same period a year ago.
Combined net synergies for the first half of fiscal 2015 were $310 million and remain on track to reach at least $650 million in fiscal 2015. The company continues to expect to reach at least $1.0 billion in combined net synergies in fiscal 2016. This excludes the synergy benefits related to the company's strategic, long-term relationship with AmerisourceBergen.
Walgreens Boots Alliance generated free cash flow of $1.0 billion in the quarter and $1.7 billion in the first six months of the fiscal year. GAAP operating cash flow totaled $1.3 billion in the quarter and $2.3 billion in the first six months.
In connection with the company's capital allocation policy, its board of directors in August 2014 authorized the repurchase of up to $3 billion of company stock prior to 31 August 2016. The company purchased $94 million worth of shares under the program during the first six months of the fiscal year. ■