"We expect these impacts to be partially offset by execution in pharmacy services and tax favorability."
— Tim Wentworth
03Detailed Report
WBA
Walgreens Boots Alliance Inc
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 26, 2026
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Executive Summary
Walgreens Boots Alliance (WBA) reported its Q2 2024 financial results on February 29, 2024, revealing a challenging operating environment impacted negatively by inflation and shifting consumer behaviors. The company's total revenue rose by 6.28% year-over-year to $37.05 billion, yet net income saw a significant decline to a loss of $5.90 billion, primarily due to a hefty $5.8 billion non-cash goodwill impairment charge associated with its investment in VillageMD. Despite this, management highlighted solid performance in the international segment and noted its first quarter of positive Adjusted EBITDA in U.S. Healthcare, positioning the company for potential recovery. Balancing cost reduction initiatives with strategic investments in healthcare solutions remains a focus for management, reflecting their commitment to navigate the retail landscape effectively.
### Operational Insights
WBA's operational results were impacted by challenges in the U.S. retail environment, particularly shifts in consumer spending driven by inflationary pressures. The company took proactive measures to manage costs, positioning towards a more sustainable financial model while realizing a 17.1% increase in own brand penetration, which management views as a lever for improved margins.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
37.05B
6.28%
0.94%
Gross Profit
7.04B
-0.21%
3.99%
Operating Income
-13.17B
-6 785.79%
33 671.79%
Net Income
-5.91B
-940.40%
8 717.91%
EPS
-6.85
-945.68%
8 727.32%
Key Financial Ratios
Gross Profit Margin
Weak
19.00%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
-0.36%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.16%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.07%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.44%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.67
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
2.57
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Negative
-0.78x
Negative earnings make P/E ratio not meaningful
Price to Book
Fair Value
1.36x
Price-to-book ratio reasonable for profitable companies
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