Walgreens quarterly profit plunges on opioid settlement

Pharmacy chain Walgreens Boots Alliance posted a 76 per cent fall in quarterly profit on Thursday, partly due to its $683 million (€655m) opioid settlement with the state of Florida. However, adjusted profit came in ahead of analysts’ estimates as demand for its products in UK-based Boots offset a decrease in US pharmacy sales on waning demand for Covid-19 vaccinations.

Shares of the second biggest US drugstore retailer by store count were down 2 per cent in premarket trading after the company maintained its full-year profit forecast.

Walgreens had been relying on gains from administering Covid-19 vaccines to tide over losses from low prescription volumes and over-the-counter sales of health and wellness products in recent quarters due to the pandemic.

On Tuesday it abandoned plans to sell Boots, citing lack of adequate third-party offers as well as ongoing strong performance in its UK business after putting the unit up for sale in January.

Net income attributable to Walgreens plunged to $289 million, or 33 US cents per share, in the third quarter ended May 31st, from $1.2 billion, or $1.38 per share, a year earlier.

Excluding one-off items, the company’s earnings for the quarter were 96 cents per share, above consensus analysts’ estimate of 92 cents, as per Refinitiv data.

Same-store sales at its Boots UK retail stores increased 24 per cent from a year earlier, led by higher demand for beauty products. – Reuters