Walgreens Q3 Earnings : How Did The Retail Division Perform?
Walgreens Boots Alliance (NASDAQ:WBA) announced its fiscal Q3 earnings on Wednesday, July 6th. The company’s revenue grew marginally by 2.4% year-on-year (y-o-y) to $29.5 billion for the quarter, while its earnings per share declined 14.4% y-o-y and was reported at $1.01.
Retail Pharmacy USA
The Retail pharmacy USA division reported revenues of $21.19 billion, a marginal increase of 3.7% over the quarter last year. The increase in revenue was primarily driven by an increase in prescriptions filled and an increase in the number of Medicare Part D prescriptions filed. The company filled 235 million prescriptions on a 30 day basis, an increase of 3.9% y-o-y. This increase led to growth in Walgreens total market share by 30 basis points to 19.6%. The division’s gross margins declined marginally to 26.45%, which was mainly attributed to lower third party reimbursements and changes in mix, partially offset by procuring efficiencies. At the end of the quarter, the store count for the company stood at 8208.
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Retail Pharmacy International
The Retail Pharmacy International division reported revenues of $3.19 billion, which were 2.3% lower than the revenue reported in Q3 FY’15. The reduction in the reported revenue was primarily attributed to negative exchange rates for the company. On a constant currency basis, sales increased 3.2% y-o-y. Retail sales increased marginally in Ireland and Thailand, but were lower in Chile – due to the loss of contracts – and in the United Kingdom – primarily due to reduced government funding compared to the previous year. The division’s operating income increased 8.8% y-o-y to $223 million, primarily driven by lower SG&A expenses.
Have more questions about Walgreens Boots Alliance (NASDAQ:WBA)? Click on the links below:-
- Walgreens-Rite Aid Merger: How Will The Combined Entity Compare With CVS?
- Walgreens Q3 Earnings : EPS Declines Despite Increase In Revenues
- Walgreens Q2 2016 Earnings Review: Acquisition Synergies To Boost Margins Going Forward
- Walgreens FY 2015 Earnings: Robust Sales Growth And Cost Savings Boosted Profits
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