How Has Walgreens’ Revenue Performed And What Is Its Potential?

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Walgreens Boots Alliance

Walgreens (NYSE:WBA) reported revenue of $127 billion and earnings of $4.70 in 2018. The revenue consists of four key components:

  1. Retail Pharmacy USA- Pharmacy Drugs (sale of prescription drugs in US)
  2. Retail Pharmacy USA- OTC & Other (sale of healthcare and retail products)
  3. Retail Pharmacy International (sale of prescription drugs and provision of pharmacy-related services)
  4. Pharmaceutical Wholesale (distribution of prescription medicines to pharmacists)

 

As we detail below, we expect Walgreens to grow by 6.3% in revenues and reach $135 billion in 2019. We have created an interactive dashboard, What is Walgreens Revenue Breakdown?  In addition, here is more Consumer Staples data.

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Total Revenue:

  • Walgreens has seen a steady growth in revenues and has increased from $116 billion in 2016 to $127 billion in 2018.
  • We expect the revenues to grow in 2019 by around 6.3% and reach $135 billion, led by an increase in Retail Pharmacy USA- Pharmacy Drugs segment.

 

Retail Pharmacy USA- Pharmacy Drugs:

  • Retail Pharmacy USA- Pharmacy Drugs segment has been the highest contributor to Total Revenue over the years. The revenue has increased from $56.8 billion in 2016 to $65.3 billion in 2018.
  • Trefis estimates the segment to continue growing at a good pace as the company is set to increase its share in the retail prescriptions filled in the US, and post revenue of approximately $72 billion in 2019.

 

Retail Pharmacy USA- OTC & Other:

  • Retail Pharmacy USA- OTC & Other segment has been quite flat over the years. The revenue has just increased from $27.26 billion in 2016 to $27.29 billion in 2018.
  • Trefis estimates the segment to grow slightly as the company is set to add more retail drugstores in the US and post revenue of approximately $28.13 billion in 2019.

 

Retail Pharmacy International:

  • Retail Pharmacy International segment has seen negative growth over the years as the average revenue per store metric dropped. The revenue decreased from $12.8 billion in 2016 to $11.8 billion in 2018.
  • Trefis estimates the segment to have a small growth as the average revenue per store metric starts to stabilize and post revenue of approximately $12 billion in 2019.

 

Pharmaceutical Wholesale:

  • Pharmaceutical Wholesale segment has seen fluctuating growth over the years. The revenue increased from $20 billion in 2016 to $22.7 billion in 2018.
  • Trefis estimates the segment to consolidate its existing services and post revenue of approximately $22.9 billion in 2019.

 

 

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