Walgreens Boots Alliance has reported a significant loss of $3 billion in its fourth quarter, leading to plans to close 1,200 stores over the next three years. The company aims to focus on its more profitable locations and improve its cash flow.
Despite challenges in the retail pharmacy sector, Walgreens' shares rose 16% following the earnings report, which exceeded expectations. The company's healthcare segment has shown promising growth, with a 7% increase in revenue in the fourth quarter. VillageMD and Shields Health Solutions have contributed significantly to this growth.
Walgreens' financial performance in terms of sales and profit surpassed expectations, with the U.S. retail pharmacy segment generating $29.5 billion in sales, a 6.5% increase from the previous year. The international segment also saw growth, with fourth-quarter sales reaching $6 billion, up 3.2% from the previous year.
Despite the reported loss, Walgreens' financial maneuvers, including net cash provided by operating activities and free cash flow, reflect a positive outlook for the company.