Walgreens Boots Alliance Q4 Earnings Beat Estimates

Retail pharmacy chain Walgreens Boots Alliance Inc WBA reported fourth-quarter FY21 sales growth of 12.8% year-over-year to $34.26 billion, and an 11.8% increase on a constant currency basis, beating the consensus of $33.3 billion.
Adjusted EPS improved by 29.5% Y/Y to $1.17, beating the consensus of $1.02.
The gross margin expanded by 108 bps to 21.9%, and the adjusted gross margin was 21.7%. The operating income increased by 49.7% Y/Y to $910 million.
U.S. segment: Sales were $28.8 billion (+6.6% Y/Y) with a comparable sales increase of 8.1%. Pharmacy sales increased 6.7% Y/Y, and comparable pharmacy sales increased 8.9%. Retail sales increased 6.5% Y/Y, and comparable retail sales increased 6.2%.
International segment: Sales totaled $5.5 billion (+61.8% Y/Y), including a favorable currency impact of 9.2%. Boots UK comparable pharmacy sales increased 11.4%.
Walgreens generated cash from operating activities for the fiscal year totaled $5.56 billion, and Free cash flow was $4.2 billion.
Walgreens held cash and equivalents of $1.27 billion as of August 31, 2021.
Walgreens surpassed the COVID-19 vaccination goal by providing 13.5 million vaccinations in the quarter and 34.6 million in FY21.
Price Action: WBA shares are trading higher by 1.04% at $47.74 during the premarket session on Thursday.

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