Tue, Apr 8, 11:08 AM (38 days ago)
**Walgreens Boots Alliance, Inc. (WBA) Q2 2025 Financial Summary** **Financial Performance:** - **Revenue:** $38.6 billion (up 4.1% YoY) - **Gross Profit:** $6.9 billion (down 1.5% YoY) - **Operating Loss:** $5.6 billion (improved by $7.6 billion YoY) - **Net Loss:** $2.9 billion (improved by $3.1 billion YoY) - **Adjusted Operating Income:** $785 million (down 12.8% YoY) - **Adjusted Net Earnings:** $543 million (down 47.6% YoY) **Segment Performance:** - **U.S. Retail Pharmacy:** Sales up 5.3%, pharmacy sales up 8.9%, retail sales down 5.5% - **International:** Sales up 0.6%, pharmacy sales down 6.7%, retail sales up 1.1% - **U.S. Healthcare:** Sales down 1.1%, operating loss improved by $9.8 billion **Key Metrics:** - **Gross Margin:** 18.0% (down from 19.0% YoY) - **SG&A Expenses:** 32.5% of sales (up from 25.6% YoY) - **Effective Tax Rate:** -5.0% (benefit) **Cash Flow:** - **Operating Cash Flow:** -$339 million (improved by $579 million YoY) - **Investing Cash Flow:** $342 million (down from $902 million YoY) - **Financing Cash Flow:** -$1.973 billion (down from -$127 million YoY) **Liquidity and Capital Resources:** - **Cash and Cash Equivalents:** $1.2 billion (down from $3.2 billion YoY) - **Total Debt:** $8.0 billion (up from $7.2 billion YoY) - **Credit Ratings:** Downgraded below investment grade **Strategic Initiatives:** - **Footprint Optimization Program:** Plans to close 900-1,000 stores by end of fiscal 2027 - **VillageMD:** Evaluating options including sale or restructuring - **Goodwill Impairments:** $3.0 billion related to VillageMD, $2.3 billion related to U.S. Retail Pharmacy **Uncertainties and Risks:** - **Merger Uncertainties:** Pending regulatory approvals and shareholder vote - **Economic Conditions:** Inflation, high interest rates, labor shortages, supply chain disruptions - **Legal and Regulatory Risks:** Opioid-related claims, litigation settlements, and other legal proceedings **Future Outlook:** - Focus on cost control, strategic asset monetization, and improving operational efficiency - Continued evaluation of capital allocation policy and long-term turnaround efforts - Potential impact of merger on business operations, financial condition, and stock price **Summary:** Walgreens Boots Alliance reported a mixed quarter with improved operating loss and net loss, but faced challenges in gross profit and adjusted earnings. The company is focusing on strategic initiatives to optimize its footprint, monetize assets, and improve operational efficiency. However, uncertainties related to the pending merger, economic conditions, and legal risks pose significant challenges to the company's future performance.