"While this quarter's results were not in line with our expectations...the severity and duration of the challenges in the operating environment have only added urgency to our strategic and operational review."
— Tim Wentworth (CEO)
03Detailed Report
WBA
Walgreens Boots Alliance Inc
Period
Q3 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 27, 2026
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Executive Summary
Walgreens Boots Alliance Inc (WBA) reported its Q3 2024 results, reflecting a mixed performance amid persistent challenges in the U.S. retail pharmacy sector. The company achieved revenue of $36.35 billion, up 2.5% year-over-year, but saw a stark decline in profitability, with adjusted EPS dropping 37% to $0.63. Key issues highlighted by management include a challenging consumer environment, reimbursement pressures in the pharmacy sector, and an overall shift in retail dynamics impacting cash flow. Nonetheless, strength in the U.S. healthcare segment and international sales demonstrated resilience, suggesting potential paths to recovery if new strategies are effectively executed. Management has emphasized their commitment to enhancing operational efficiency and redefining the consumer pharmacy experience, which may yield long-term benefits.
Key Performance Indicators
Revenue
Increasing
36.35B
QoQ: -1.89% | YoY: 2.64%
Gross Profit
Decreasing
6.46B
17.77% margin
QoQ: -8.25% | YoY: -1.97%
Operating Income
Decreasing
111.00M
QoQ: -100.84% | YoY: -123.27%
Net Income
Increasing
344.00M
QoQ: -105.82% | YoY: 191.53%
EPS
Increasing
0.40
QoQ: -105.84% | YoY: 185.71%
Revenue Trend
Margin Analysis
Financial Highlights
### Financial Metrics Overview:
- Revenue: $36.35 billion (YoY increase of 2.5% on a constant currency basis)
- Net Income: $344 million
- EPS: $0.63
- Adjusted EPS YoY Change: -37%
- Operating Income: $111 million
- Gross Profit Margin: 17.7%
- Operating Cash Flow: $604 million
### Key Takeaways:
- Revenue growth was supported by a 7.6% increase in U.S. healthcare sales, indicating robust demand in that segment.
- U.S. retail pharmacy sales are under pressure, contributing to a 48% decline in operating income due to structural industry challenges and inflationary impacts on costs.
- Continued investments into promotions in response to changing consumer behavior are impacting near-term profitability, evidenced by a decline in retail gross margins.
### Ratios:
- Current Ratio: 0.653
- Debt Ratio: 0.406
- Return on Equity: 2.52%
- Free Cash Flow: $327 million with challenges expected in the coming quarters according to management commentary.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
36.35B
2.64%
-1.89%
Gross Profit
6.46B
-1.97%
-8.25%
Operating Income
111.00M
-123.27%
-100.84%
Net Income
344.00M
191.53%
-105.82%
EPS
0.40
185.71%
-105.84%
Key Financial Ratios
Gross Profit Margin
Weak
17.80%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
0.31%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
0.95%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.42%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
2.52%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.65
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
2.47
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Value
10.17x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
1.03x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
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