Q4 2024 Walgreens Boots Alliance Inc Earnings Call Transcript
Key Points
- Walgreens Boots Alliance Inc (WBA) successfully cut costs by over $1 billion, reduced CapEx by over $700 million, and realized over $600 million in benefits from working capital initiatives, contributing to positive cash flow in the fourth quarter.
- The company achieved a net debt reduction of $1.9 billion in fiscal 2024, strengthening its balance sheet.
- Walgreens Boots Alliance Inc (WBA) plans to invest in profitable stores, with over 6,000 out of 8,000 stores being profitable, supporting its retail pharmacy-led model.
- The company launched over 300 new own brand SKUs in fiscal 2024 and plans to launch another 300 plus in fiscal 2025, focusing on health and wellness categories.
- Walgreens Boots Alliance Inc (WBA) exceeded its goal of $1 billion in cost savings for the year, with most benefits recognized in the U.S. Retail Pharmacy segment.
- Adjusted EPS of $0.39 decreased 41% year-over-year on a constant currency basis, with significant declines in U.S. Retail Pharmacy performance.
- The company plans to close approximately 1,200 underperforming stores over the next three years, which may impact its market presence.
- Walgreens Boots Alliance Inc (WBA) faces ongoing pressure on reimbursement rates in the U.S. Pharmacy segment, impacting pharmacy margins.
- GAAP net loss was $8.6 billion compared to a loss of $3.1 billion in fiscal '23, including non-cash impairment charges and opioid-related claims.
- Comparable retail sales in the U.S. declined 1.7% in the quarter, driven by sales pressure in non-essential categories.
Good day, ladies and gentlemen. Thank you for standing by. Welcome to Walgreens Boots Alliance fourth quarter 2024 results earnings conference call. (Operator Instructions) Please note that today's conference is being recorded. I will now hand the conference over to your speaker host, Tiffany Kanaga, Vice President, Corporate Investor Relations. Please go ahead.
Good morning. Thank you for joining us for the Walgreens Boots Alliance earnings call for the fourth quarter of fiscal year 2024. I'm Tiffany Kanaga, Vice President of Global Investor Relations. Joining me on today's call are Tim Wentworth, our Chief Executive Officer; and Manmohan Mahajan, Global Chief Financial Officer.
In addition, Mary Langowski, President, U.S. Healthcare; Rick Gates, Senior vice president and Walgreen's Chief Pharmacy Officer; and Tracey Brown, President of Walgreens Retail and Chief Customer Officer, will participate in Q&A. Also in the room this morning is Eric Wasserstrom, Senior Vice
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