Walgreens Boots Alliance reports 4.1% sales growth in Q2 FY25
The company has improved its sales as compared to the same period last year.
USA – Walgreens Boots Alliance(WBA), an American multinational holding company, has announced its financial results for Q2 FY25, which ended February 28, 2025.
The company’s sales increased by 4.1% yearly to $38.6 billion, with a 4.7% increase on a constant currency basis.
Despite challenges in other areas, this growth was driven by improvements in the U.S. Retail Pharmacy and International segments.
Tim Wentworth, CEO at Walgreens Boots Alliance, stated, “Second quarter results reflect disciplined cost management and improvement in U.S. Healthcare, which were partially offset by weaker front-end results in U.S.”
The company reported an operating loss of USD 5.6 billion for the second quarter, a significant improvement from the USD 13.2 billion loss recorded during the same period last year.
The adjusted operating income decreased by 12.78% to USD 785 million, compared to USD 900 million in the same quarter last year.
The loss per share decreased to USD 3.30, compared to USD 6.85 in the year-ago quarter.
The company reported adjusted earnings per share of $0.63 for the second quarter, marking a sharp decline from $1.20 in the corresponding quarter a year earlier.
Acquisition by Sycamore Partners
Recently, Walgreens Boots Alliance (WBA) entered into a definitive agreement to be acquired by Sycamore Partners, a private equity firm specializing in retail, consumer, and distribution-related investments.
The transaction, valued at up to USD 23.7 billion, includes USD 11.45 per share in cash and an additional potential value of up to USD 3.00 per share from the future monetization of WBA’s interests in VillageMD businesses.
This acquisition aims to leverage WBA’s healthcare expertise and Sycamore’s retail and consumer services leadership to accelerate WBA’s turnaround strategy.
The company will continue to operate under its trusted Walgreens and Boots brands, maintaining its headquarters in the Chicago area.
The agreement provides shareholders with premium cash value and the opportunity to create further value through the monetization of VillageMD businesses.
Wentworth said, “Sycamore will provide us with the expertise and experience of a partner with a strong track record of successful retail turnarounds.”
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.
