10.18.21
Walgreens fiscal year earnings for 2021 exceeded company expectations.
“Our fourth quarter and fiscal year results exceeded expectations, driven by strong performance in our core business,” said Chief Executive Officer Roz Brewer. “Comparable US pharmacy and retail sales both saw robust growth and recovery continued in our UK business as COVID-19 restrictions eased in the quarter. I remain extremely proud of our team members' unwavering commitment to meeting the needs of our patients, customers and communities. The role of the pharmacist and local pharmacy is now more vital than ever.”
Walgreens Boots Alliance (WBA) fiscal 2021 fourth quarter sales from continuing operations increased 12.8% from last year to $34.3 billion, up 11.8% on a constant currency basis. This result reflects strong growth in both the international and United States segments.
Operating income from continuing operations increased 49.7% to $910 million in the fourth quarter compared to last year. Adjusted operating income from continuing operations increased 22.9% on a reported currency basis to $1.2 billion, an increase of 22.1% on a constant currency basis. The increase reflects strong gross profit growth across pharmacy and retail in the United States and higher international segment sales and profitability due to strong operational performance and ongoing recovery in the UK, where COVID-19 restrictions were lifted in July.
Net earnings from continuing operations in the fourth quarter were $358 million, up 6.4% from last year, reflecting increased operating income in both segments.
Fiscal 2021 sales from continuing operations increased 8.6% from the year-ago period to $132.5 billion, up 7.5% on a constant currency basis.
To date, Walgreens has administered more than 40 million COVID-19 vaccinations and more than 16 million COVID-19 tests;
In beauty, WBA said it continued expansion of beauty in the UK, with market share for premium makeup and skincare the highest on record, underpinned by one of the largest Boots UK marketing campaigns to date;
Business Segment - US
WBA said the United States segment had fourth quarter sales of $28.8 billion, an increase of 6.6% from the year-ago quarter. Comparable sales increased 8.1% from last year.
WBA said the United States segment had fourth quarter sales of $28.8 billion, an increase of 6.6% from the year-ago quarter. Comparable sales increased 8.1% from last year.
Pharmacy sales increased 6.7% and comparable pharmacy sales increased 8.9% in the fourth quarter compared with the year-ago quarter. Within comparable pharmacy sales, prescriptions filled in the fourth quarter increased 8.8% from a year earlier, including a positive impact of 485 basis points from COVID-19 vaccinations. Total prescriptions filled in the quarter increased 8.6 percent to 313 million, including immunizations, adjusted to 30-day equivalents.
Retail sales increased 6.5% and comparable retail sales increased 6.2% in the fourth quarter compared with the year-ago quarter. Excluding tobacco and e-cigarettes, they increased 7.2%, reflecting broad based growth across all categories. In particular, health and wellness sales increased 14%, which was aided by cough cold flu, at-home COVID-19 tests and vitamins.
Business Segments - International
The International segment had fourth quarter sales of $5.5 billion, an increase of 61.8% from the year-ago quarter.
WBA said Boots.com continued to perform ahead of expectations, with digital sales in the fourth quarter more than doubling compared with pre-COVID levels.