Walgreens posted mixed Q2 results

Despite gains in prescription marketshare and comparable pharmacy sales across its U.S. base, Walgreens Boots Alliance missed analyst expectations for its second quarter.

Walgreens Boots Alliance reported adjusted earnings per share of $1.36 for the quarter, ended Feb. 28, which came below the FactSet consensus of $1.37. Total revenue declined 2.4% to $29.4 billion, missing the FactSet consensus of $30.3 billion.



Walgreens Boots Alliance's retail pharmacy USA division realized second quarter sales of $21.8 billion, an increase of 1.5% over the year-ago quarter. Same-store sales increased 2.4%.



Pharmacy sales, which accounted for 66.5% of the division’s sales in the quarter, increased 3.7%. Comparable pharmacy sales increased 4.2%, primarily due to increased volume.



“Our results this quarter were in line with our expectations despite some challenging conditions we faced in a number of markets," said Stefano Pessina, Walgreens Boots Alliance executive vice chairman and CEO.



"I am particularly pleased with the growth in pharmacy volume and market share in the retail pharmacy USA division, which saw the highest comparable prescription growth in more than seven years," he said. "At the same time, we continue to work toward gaining regulatory approval of the pending acquisition of Rite Aid Corporation by the end of July, consistent with the amended merger agreement announced in January.”



Walgreens Boots Alliance continues to be actively engaged in discussions with the Federal Trade Commission regarding the pending acquisition of Rite Aid, the company noted, and the extension of the end date of the agreement to July 31 allows the parties additional time to obtain regulatory approval.



The transaction is subject to approval by the holders of Rite Aid’s common stock, the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other customary closing conditions. Walgreens Boots Alliance said it continues to expect that it will realize synergies from the acquisition of Rite Aid in excess of $1 billion, to be fully realized within three to four years of the closing of the merger.