Walgreens Boots Alliance reported fiscal 2024 second quarter results.
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WBA second quarter sales increased 6.3 percent from the year-ago quarter to $37.1 billion, an increase of 5.7 percent on a constant currency basis, reflecting sales growth across all segments.
Second quarter operating loss was $13.2 billion compared to an operating income of $197 million in the year-ago quarter.
Operating loss in the quarter includes a $12.4 billion non-cash impairment charge related to VillageMD goodwill, which resulted in a $5.8 billion charge attributable to WBA, net of tax and non-controlling interest.
Operating loss also reflects a $455 million non-cash impairment charge related to certain long-lived assets in the U.S. Retail Pharmacy segment.
Adjusted operating income was $900 million, a decrease of 26.5 percent on a constant currency basis reflecting lower sale leaseback gains and softer U.S. retail performance, partly offset by improved profitability in the U.S. Healthcare segment.
Net loss in the second quarter was $5.9 billion compared to net earnings of $703 million in the year-ago quarter, reflecting non-cash impairment charges.
Adjusted net earnings increased 3.5 percent to $1.0 billion, up 3.0 percent on a constant currency basis, as lower adjusted operating income was more than offset by the lower adjusted effective tax rate compared to the year-ago quarter due to the recognition of deferred tax assets in foreign jurisdictions.
Loss per share in the second quarter was $6.85 compared to earnings per share of $0.81 in the year-ago quarter.
Adjusted EPS increased 3.4 percent to $1.20, reflecting an increase of 2.8 percent on a constant currency basis.
Net cash used for operating activities was $637 million in the second quarter. Operating cash flow was negatively impacted by $615 million in payments related to legal matters, a $379 million Boots Pension Plan Annuity premium, and underlying seasonality.
Year-over-year cash flow was negatively impacted by payments related to legal matters, phasing of working capital, and lower earnings.
Free cash flow was negative $610 million, a $1.3 billion decrease compared with the year-ago quarter.
Capital expenditures decreased by $146 million compared to the year-ago quarter. ■