Drugstore chain Walgreens Boots Alliance (NASDAQ:WBA) said on Thursday its quarterly profit slumped 44.9%, as Covid-19 hampered sales at its retail stores in the United States and at its Boots UK unit.
However, the company said it expected single-digit growth in its 2021 adjusted earnings per share.
Net income attributable to Walgreens fell to $373 million or 43 cents per share, in the fourth quarter ended Aug. 31, from $677 million, or 75 cents per share, a year earlier.
Sales increased 2.3% to $34.7 billion, up 2.3% on a constant currency basis.
Operating income decreased 26% to $650 million; Adjusted operating income decreased 27.7% to $1.1 billion, down 27.4% on a constant currency basis.
EPS decreased 42.8% to $0.43; Adjusted EPS decreased 28.2% to $1.02, down 27.9% on a constant currency basis; reflecting an estimated adverse COVID-19 impact of approximately $0.46.
According to CEO Stefano Pessina, "I am pleased to report results that came in at the high end of our expectations as we continue to adapt and transform our business model to changing customer needs.
"Despite uncertainty amid the global COVID-19 pandemic, we are seeing gradual improvement in key U.S. and UK markets and continued strong performance in our wholesale business. I'm also encouraged by the accelerating growth in our e-commerce platforms."
The company today introduced fiscal 2021 guidance of low single-digit growth in adjusted earnings per share at constant currency rates.
WBA shares rocketed $1.80, or 5%, in Thursday’s first hour of trade to $37.71.
