WASHINGTON (dpa-AFX) - Walgreens Boots Alliance (WBA) reported third quarter
net earnings of $344 million compared to $118 million in the year-ago quarter.
EPS in the third quarter was $0.40 compared to $0.14. The prior year quarter
GAAP net earnings included charges of $323 million impairment related to
pharmacy license intangible assets in Boots UK.

Third quarter adjusted operating income was $613 million, a decrease of 36.3
percent on a constant currency basis reflecting lower sale-leaseback gains and
softer U.S. retail and pharmacy performance, partly offset by cost savings
initiatives and improved profitability in the U.S. Healthcare segment. Adjusted
net earnings were $545 million, down 36.5 percent on a constant currency basis,
reflecting lower adjusted operating income. Adjusted EPS was $0.63, a decrease
of 36.6 percent, on both a reported and constant currency basis. On average, 14
analysts polled by Thomson Reuters expected the company to report profit per
share of $0.68, for the quarter. Analysts' estimates typically exclude special
items.

Third quarter sales increased 2.6 percent year-over-year to $36.4 billion, an
increase of 2.5 percent on a constant currency basis. Analysts on average had
estimated $35.94 illion in revenue.

CEO Tim Wentworth said: 'We continue to face a difficult operating environment,
including persistent pressures on the U.S. consumer and the impact of recent
marketplace dynamics which have eroded pharmacy margins. Our results and outlook
reflect these headwinds, despite solid performance in both our International and
U.S. Healthcare segments.'

For fiscal 2024, the company lowered adjusted EPS guidance to $2.80 to $2.95
reflecting challenging pharmacy industry trends and a worse-than-expected U.S.
consumer environment. In March, the company projected 2024 adjusted EPS to be in
a range of $3.20 to $3.35. Analysts expect the company to report profit per
share of $3.20.

Walgreens Boots Alliance also noted that the recent headwinds are expected to
persist into fiscal 2025. Also, issuing an update on strategic review, the
company said it is finalizing significant multiyear footprint optimization
program to close certain underperforming U.S. stores.

Shares of Walgreens Boots Alliance are down 15% in pre-market trade on Thursday.

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