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Walgreens Reports 14% Sales Growth in Fiscal Third Quarter

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WBA reports solid quarterly sales growth

Walgreens Boots Alliance (WBA) reported its fiscal third-quarter 2018 results on June 28. Its top line increased 14% YoY (year-over-year) to $34.3 billion. On a constant currency basis, sales were up 11.8% YoY.

The company did better than Wall Street’s expectations of a 13.1% YoY increase in sales to $34.1 billion. It was the fifth consecutive top-line beat for Walgreens. Year-to-date, its total sales have increased 11.4% YoY to $98.1 billion.

“I am pleased that, in what has been a challenging environment, we have again delivered solid earnings per share growth combined with healthy cash flow. We expect to continue to drive growth, bringing more patients to our U.S. pharmacies through the recent acquisition of Rite Aid stores and through strategic partnerships,” said Stefano Pessina, executive vice chair and CEO of Walgreens.

In the next part of this series, we’ll find out more about its key top-line drivers for the quarter.

How have competitors performed lately?

CVS Health (CVS), America’s largest pharmacy chain, reported a 2.7% YoY increase in sales to $45.7 billion in its quarterly results in May. The company missed analysts’ consensus expectation by $75 million.

Rite Aid (RAD), which reported its quarterly results a day before Walgreens, reported its fifth consecutive quarter of top-line declines. Sales from continuing operations fell 0.9% YoY to $5.4 billion. However, it outperformed Thomson Reuters’s average consensus expectation by $70 million.

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