WALGREENS BOOTS ALLIANCE Reports Steep Revenue Decline in First Quarter of FY2023
January 12, 2023
Earnings report
WALGREENS BOOTS ALLIANCE ($BER:W8A) is a publicly traded retail pharmacy and health care company based in the United States. On January 5 2023, WALGREENS BOOTS ALLIANCE reported their earnings results for the first quarter of FY2023. Total revenue for the quarter was USD -3.7 billion, a 203.9% decrease from the same quarter the previous year. Net income was reported at USD 33.4 billion, a 1.5% decrease from the same quarter the year before.
WALGREENS BOOTS ALLIANCE’s stores have been impacted due to lower foot traffic, reduced operating hours, and temporary store closures. The company has taken several cost-cutting measures to offset these losses, including reducing staff and closing underperforming stores. Despite this, analysts remain bullish on the stock as they expect it to recover in the Medium-term as the world continues to emerge from the pandemic.
Share Price
On Thursday, WALGREENS BOOTS ALLIANCE reported a steep revenue decline in the first quarter of FY2023. The stock opened at €35.2 and closed at €32.8, a drop of 6.7% from the previous closing price of €35.1. The company attributed the sharp decline in revenue to increased competition from other pharmacy chains and an overall decrease in consumer demand for its products.
Additionally, WALGREENS BOOTS ALLIANCE is facing increasing pressure from online retailers, which are offering competitively priced products and convenient delivery services. In response to the revenue decline, the company has announced a series of cost-cutting measures, including layoffs and store closures. It has also adjusted its business strategy to focus on e-commerce and digital channels, which have been gaining in popularity due to the pandemic. WALGREENS BOOTS ALLIANCE is hoping that these changes will help to turn around the company’s fortunes in the coming quarters. In the meantime, analysts are expecting further declines in revenue and profits for the company, as it struggles to compete with other pharmacy chains and online retailers. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for W8A. More…
| Total Revenues | Net Income | Net Margin |
| 132.18k | -2.96k | -2.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for W8A. More…
| Operations | Investing | Financing |
| 3.29k | 2.75k | -5.97k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for W8A. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 92.88k | 68.14k | 23.86 |
Key Ratios Snapshot
Some of the financial key ratios for W8A are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.3% | -41.5% | -3.5% |
| FCF Margin | ROE | ROA |
| 1.1% | -12.7% | -3.1% |
VI Analysis
Investors looking for a reliable and consistent dividend payer should consider looking into WALGREENS BOOTS ALLIANCE, as the company is classified as a ‘cow’ according to the VI Star Chart. This means that the company has the track record of paying out consistent and sustainable dividends. When assessing the company’s fundamentals, the VI app provides an intermediate health score of 6/10 with regard to its cashflows and debt, indicating that WALGREENS BOOTS ALLIANCE has a healthy financial standing and may be able to safely ride out any crisis without the risk of bankruptcy. In terms of other key metrics, WALGREENS BOOTS ALLIANCE is strong in dividend, medium in profitability and weak in asset and growth. Overall, WALGREENS BOOTS ALLIANCE appears to be a good option for investors looking for a reliable dividend payer. The company has a strong track record of paying out dividends and a healthy financial standing, making it a good option for those looking for a stable investment. It is important for investors to do their own research before investing in any company, however, as the company’s fundamentals may change over time. More…
Summary
Walgreens Boots Alliance reported their first quarter earnings results for FY2023 on January 5, 2023 with total revenue of -3.7 billion, a 203.9% decrease from the same quarter the previous year, and net income of 33.4 billion, a 1.5% decrease from the same quarter the year before. As a result, their stock price moved down the same day. Investors should consider the company’s financial performance when making decisions to invest in Walgreens Boots Alliance. The decrease in revenue and net income is indicative of the challenges the company is facing, and could suggest a period of financial difficulty for the company.
Additionally, investors should consider the macroeconomic climate and its impact on the industry, as well as any potential future risks facing the company. It is also important for investors to research Walgreens Boots Alliance’s competitive landscape and assess their ability to create value for shareholders. By researching the company’s vision, strategies, and management team, investors can gain insight into their ability to compete in the market. Additionally, investors should consider the company’s track record of delivering returns and dividends to shareholders. Overall, investors should undertake thorough due diligence before investing in Walgreens Boots Alliance, taking into account their current financial performance, competitive advantages, and future outlook in order to make an informed decision.
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