Walgreens Boots Alliance has released its fiscal Q1 2016 results, which signal a strong start to the year.
The company’s adjusted net earnings grew by more than half, up 51.1% to %1.1bn, compared with the same quarter the year before. Per diluted share, adjusted net earnings increased 32.1% to $1.03. Net earnings in accordance with GAAP grew 30.6%.
When it came to sales Alliance Boots, which merged with Walgreens in December 2014, helped boost performance, the company noted. Net sales in Q1 2016 jumped 48.5% to $29bn. Walgreens Boots Alliance noted that the company “continues to expect to reach at least $1bn in combined net synergies in fiscal 2016 relating to the strategic combination with Alliance Boots”.
Looking at the company’s retail pharmacy breakdowns by region, the US division, whose principle retail pharmacy brands include Walgreens and Duane Reade, generated Q1 sales of $24bn, up 4.2% on the same quarter last year. Sales in comparable stores grew 5.8%. Meanwhile, considering the company’s international retail pharmacy offering, mainly dominated by Boots, Benavides and Ahumada, reported Q1 sales of $3.5bn. Comparable store sales internationally grew 2.2% compared with the same period in the year prior. The company noted that there was “particularly strong growth in Mexico and the Republic of Ireland”.
Walgreens Boots Alliance also singled out the successes of Boots UK in Q1, which “grew due to good performances in retail healthcare and beauty, supported by continued growth in boots.com”.
In terms of overall outlook, Walgreens Boots Alliance is raising its low end of guidance for fiscal year 2016 by 5 cents per share, and anticipates adjusted net earnings per diluted share to fall between $4.30-$4.55. It noted however, that this guidance assumed no material accretion from the acquisition of Rite Aid.
