Tim Wentworth: 'Managing through the accumulating consumer pressures from inflation and depleted savings... We are navigating the accumulated consumer pressures.'
— Tim Wentworth, CEO
03Detailed Report
WBA
Walgreens Boots Alliance Inc
Period
Q1 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 27, 2026
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Executive Summary
Walgreens Boots Alliance (WBA) reported unplanned results for Q1 2024, demonstrating resilience amid a challenging retail environment. The company generated revenue of $36.71 billion, up 8.7% on a constant currency basis. However, the net loss attributable to shareholders was $67 million, corresponding to an adjusted EPS of $0.66, representing a 44% decline year-over-year. Management emphasized ongoing cost discipline and strategic initiatives in U.S. Healthcare, particularly through VillageMD, which is evolving as a pivotal segment for future growth. Despite adverse market conditions, including inflationary pressures and a weaker respiratory season, WBA affirmed its full-year adjusted EPS guidance, reflecting confidence in its operational adaptability and market position.
Trends:
- U.S. Retail Pharmacy Sales Growth: 6.4%, driven by pharmacy services despite a 6.1% decline in retail.
- International Segment Growth: 4.4%, with Boots UK showing resilience and share gains.
- Within U.S. Healthcare: Revenue soared 95% YoY, largely attributed to the Summit Health acquisition.
Management indicated that operating cash flow was negatively impacted by seasonal inventory builds and reimbursement timing, but expects to achieve about $1 billion in cost savings in the current year, a move complemented by a significant 48% cut to quarterly dividends to support capital investments.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
36.71B
9.96%
3.63%
Gross Profit
6.77B
-2.63%
4.56%
Operating Income
-39.00M
-99.37%
-91.35%
Net Income
-67.00M
-98.20%
-62.78%
EPS
-0.08
-98.20%
-63.05%
Key Financial Ratios
Gross Profit Margin
Weak
18.40%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
0.00%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
0.00%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.00%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.00%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.66
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
1.22
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Negative
-64.21x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
0.62x
Trading below book value, potential value opportunity or distressed
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