WBA third quarter sales from continuing operations increased 12.1 percent from the year-ago quarter to $34.0 billion, an increase of 10.4 percent on a constant currency basis1, reflecting strong growth in the International segment, aided by the formation of the company's joint venture in Germany during the fiscal year, and solid growth in the United States segment.
Operating income from continuing operations was $1.1 billion in the third quarter, compared with a loss of $1.7 billion in the year-ago quarter, primarily due to $2 billion non-cash impairment charges in the year-ago quarter related to goodwill and intangible assets in Boots UK. Adjusted operating income from continuing operations increased 82.9 percent on a reported currency basis to $1.5 billion, an increase of 82.4 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 rebound in International segment sales and profitability due to less severe COVID-19 restrictions in the UK.
Total net earnings attributable to WBA were $1.2 billion compared with a loss of $1.7 billion in the year-ago quarter, reflecting non-cash impairment charges in the previous period, increased operating income in both segments and earnings from the company's equity method investment related to Option Care Health; this was partially offset by a higher effective tax rate driven by discrete items in the year-ago quarter. Total adjusted net earnings in constant currency increased 79.5 percent to $1.3 billion.
Total EPS2 in the third quarter was $1.38, compared with a loss of $1.95 in the year-ago quarter. Total adjusted EPS increased 83.4 percent to $1.51, up 81.4 percent on a constant currency basis.
Net earnings from continuing operations in the third quarter were $1.1 billion, up from a loss of $1.8 billion in the year-ago quarter. Adjusted net earnings from continuing operations increased 93.1 percent to $1.2 billion, up 91.6 percent on a constant currency basis compared with the year-ago quarter.
EPS from continuing operations was $1.27 compared with a loss of $2.05 in the year-ago quarter. Adjusted EPS from continuing operations was $1.38 compared with $0.71 the year-ago quarter, reflecting an increase of 93.6 percent on a constant currency basis.
Net cash provided by operating activities was $1.8 billion in the third quarter and free cash flow was $1.4 billion, a $788 million increase compared with the year-ago quarter. ■