Exhibit 99.1

 

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Walgreens Boots Alliance Reports Fiscal 2020 Third Quarter Results

Quarterly Performance Significantly Impacted by COVID-19 Pandemic

Company Accelerates Progress on Strategic Priorities

Estimated COVID-19 impact on the third quarter

 

   

Adverse sales impact of approximately $700 million to $750 million, almost entirely from the company’s non-U.S. businesses

 

   

Gross margin adversely impacted by shift from higher to lower margin categories, supply chain costs

 

   

SG&A increased due to higher employee costs and social distancing and cleaning expenses

 

   

Both operating income and adjusted operating income included an adverse impact of $700 million to $750 million from the above items, or $0.61 to $0.65 per share, excluding impairment charges

 

   

Most significant COVID-19 impact was in UK market, requiring a review resulting in non-cash impairment charges of $2 billion

 

   

Company took actions to partly mitigate COVID-19 impacts

Third quarter results, year-over-year

 

   

Sales increased 0.1 percent to $34.6 billion, up 1.2 percent on a constant currency basis, led by Retail Pharmacy USA comparable sales growth of 3.0 percent

 

   

Operating loss of $1.6 billion, compared to operating income of $1.2 billion a year ago, mainly due to the non-cash impairment charges of $2 billion in Boots UK; Adjusted operating income decreased 46.5 percent to $919 million on a reported basis, down 46.4 percent on a constant currency basis

 

   

Loss per share was $1.95, compared to EPS of $1.13 a year ago; Adjusted EPS decreased 43.8 percent from $1.47 to $0.83, down 43.4 percent on a constant currency basis; Results reflect $0.61 to $0.65 per share estimated operational impact from COVID-19

Significant progress on key strategic priorities

 

   

Company accelerated investments in strategic priorities, preparing for future growth

 

   

Company increased annual cost savings target from the Transformational Cost Management Program to in excess of $2.0 billion by fiscal 2022, from previous target in excess of $1.8 billion

Additional highlights

 

   

Net cash provided by operating activities was $3.4 billion, an increase of $183 million compared with the same period a year ago; Free cash flow increased 23.7 percent to $2.4 billion

 

   

Company introduced fiscal 2020 adjusted EPS guidance of $4.65 to $4.75 including estimated COVID-19 impacts of $1.03 to $1.14 per share

 

   

Company increased quarterly dividend by 2.2 percent, to an annual rate of $1.87 per share and suspended activity under its share repurchase program

DEERFIELD, Ill., July 9, 2020 - Walgreens Boots Alliance, Inc. (Nasdaq: WBA) today announced financial results for the third quarter of fiscal 2020, which ended May 31, 2020.

Executive Vice Chairman and CEO Stefano Pessina said, “Prior to the pandemic our financial performance for fiscal 2020 was on track with our expectations. However, this unprecedented global crisis led to a loss in the quarter as stay-at-home orders affected all of our markets. I’m very proud of how all of our teams mobilized and adapted to


The following information was filed by Walgreens Boots Alliance, Inc. (WBA) on Thursday, July 9, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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