The parent company of health and beauty retailer Boots has released the results for its second fiscal quarter, recording a mixed bag of earnings and sales yet meeting expectations.
US-based Walgreens Boots Alliance posted net earnings of $1.1 billion (£881.23 million) earnings for the quarter ending February 28, a 14 per cent increase when compared to the same period a year ago.
On an adjusted net earnings basis, the company recorded a 3.7 per cent increase to $1.5 billion (£1.2 billion), up 6.2 per cent on a constant currency basis.
Meanwhile, Walgreens’ sales decreased 2.4 per cent to $29.4 billion (£23.55 billion) year-on-year, but increased 0.9 per cent on a constant currency basis.
Operating income also decreased, with Walgreens recording $1.5 billion (£1.2 billion), 20.5 per cent drop.
Adjusted operating income decreased 4.9 per cent to $2 billion (£1.6 billion), down 2.7 per cent on a constant currency basis due to the costs related to the company’s cost transformation program.
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Despite all this, net cash provided by operating activities was $2.9 billion (£2.32 billion), an increase of $504 million (£403.8 million) from same period last year.
Free cash flow was also recorded at $2.6 billion (£2.08 billion), an increase of $560 million.
“Our results this quarter were in line with our expectations despite some challenging conditions we faced in a number of markets,” Walgreens vice chairman and chief executive Stefano Pessina said.
Looking at the company’s first fiscal half, net earnings increased 3.6 per cent to $2.1 billion (£1.68 billion) compared with the same period a year ago, while adjusted net earnings increased 4.8 per cent to $2.7 billion (£2.16 billion) , up 7.1 per cent on a constant currency basis.
Sales decreased 2.1 per cent to $57.9 billion (£46.37 billion) in the first six months with the same period a year ago, but on a constant currency basis, sales increased one per cent.
Meanwhile, operating income was $2.9 billion (£2.32 billion), a decrease of 12.1 per cent year-on-year. Adjusted operating income in the first half stood at $3.7 billion (£2.96 billion), a decrease of 2.5 per cent year-on-year and a decrease of 0.3 per cent on a constant currency basis.