Bulletin: Walgreens Boots Alliance Inc.?s Performance Improves As Operating Hurdles Persist

NEW YORK (S&P Global Ratings) Jan. 7, 2021--S&P Global Ratings today said that Walgreens Boots Alliance Inc.'s (BBB/Negative/A-2) first quarter of fiscal 2021 (ended Nov. 30, 2020) has shown sequentially improved performance. However, the impact from a resurgence in COVID-19 cases and a weaker cough, cold, and flu season are hurdles we continue to monitor. First-quarter revenues increased 5.7% on growth in prescriptions filled and higher comparable front-end retail sales. Company-reported operating income (excluding equity loss in AmerisourceBergen Corp.) was down nearly 7% as pharmacy reimbursement pressure, business investments, and COVID-19 pandemic-related expenses offset benefits from cost-saving initiatives. Based on recent results, we believe Walgreens is on track to achieve the $2 billion or more annual savings under its transformational

...January 7, 2021 NEW YORK (S&P Global Ratings) Jan. 7, 2021--S&P Global Ratings today said that Walgreens Boots Alliance Inc.'s (###/Negative/A-2) first quarter of fiscal 2021 (ended Nov. 30, 2020) has shown sequentially improved performance. However, the impact from a resurgence in COVID-19 cases and a weaker cough, cold, and flu season are hurdles we continue to monitor. First-quarter revenues increased 5.7% on growth in prescriptions filled and higher comparable front-end retail sales. Company-reported operating income (excluding equity loss in AmerisourceBergen Corp.) was down nearly 7% as pharmacy reimbursement pressure, business investments, and COVID-19 pandemic-related expenses offset benefits from cost-saving initiatives. Based on recent results, we believe Walgreens is on track to achieve the $2 billion or more annual savings under its transformational cost-management program. These cost benefits should continue to partly mitigate pharmacy reimbursement pressures and industry challenges....

Bulletin