Walgreens Boots Alliance reported a $3.7 billion net loss in the first quarter of the 2023 fiscal year ending Nov. 30, a significant drop from $3.6 billion in net income over the same period last year, driven by after-tax charges for opioid-related claims and litigation.
WBA reported first quarter sales were down 1.5 percent year over year, hitting $33.4 billion. Adjusted operating income was down 42.2 percent to $1 billion due to lower volumes of COVID-19 vaccines and tests administered when compared with the same period last year. The company also reported planned payroll and IT investments in its U.S. retail pharmacy businesses.
In the first quarter, WBA also invested $3.5 billion in debt and equity to support VillageMD's acquisition of Summit Health, which closed Jan. 3. For the upcoming fiscal year, WBA raised full-year sales guidance to $133.5 billion to $137.5 billion to reflect the Summit Health acquisition.
"WBA delivered a solid start to the fiscal year, as we continue to accelerate our transformation to a consumer-centric healthcare company," said Rosalind Brewer, CEO of WBA. "We're making significant progress in driving our U.S. healthcare segment to scale and profit, including the recent VillageMD acquisition of Summit Health."
The company is also expected to close its acquisition of CareCentrix in the third quarter of the 2023 fiscal year.