From NBC Universal:

Walgreens reported higher earnings and revenue than expected in its fiscal first quarter, but cut its quarterly dividend to 25 cents per share from 48 cents per share in an effort to strengthen its balance sheet. This marks Walgreens’ first dividend cut in almost five decades. Newly appointed CEO Tim Wentworth aims to guide the company out of a difficult period.

Shares of Walgreens declined by 30% last year as the company faced decreasing demand for Covid products, low pharmacy reimbursement rates, and competition from online retailers, among other challenges. However, Thursday’s earnings beat represents a turnaround from two straight quarters of missed earnings estimates in October. The company reported a net loss of $67 million for the fiscal first quarter, a drastic improvement from the $3.7 billion loss in the same period last year.

Walgreens’ U.S. retail pharmacy segment generated over $28.94 billion in sales in the fiscal first quarter, with a significant increase in pharmacy sales. However, retail sales fell 6.1% due to macroeconomic-driven consumer trends and store closures during Thanksgiving. Meanwhile, the company’s international segment saw sales of $5.83 billion, up more than 12% from the same period a year ago. The U.S. health-care segment’s revenue also doubled to $1.93 billion compared to the previous year.



Read more: Walgreens (WBA) earnings Q1 2024