Walgreens Swings to Loss as Pandemic Weighs on Customer Visits
09 Julio 2020 - 07:17AM
Noticias Dow Jones
By Micah Maidenberg
Walgreens Boots Alliance Inc. said demand fell off in its
international business during the drugstore chain's latest quarter
as consumers in the U.K. stayed at home amid the coronavirus
pandemic, hurting its business in that market.
The pharmacy chain on Thursday said the Covid-19 pandemic sliced
out around $700 million to $750 million in sales for its quarter
that ended May 31, with most of the impact tied to its retail
pharmacy business overseas.
A "dramatic reduction" in customer traffic, including an 85%
decline in April, weighed on demand for its Boots U.K. stores,
Walgreens said. The company said it recorded noncash impairment
charges of $2 billion tied to the Boots U.K. unit.
Overall, Walgreens said it lost $1.71 billion, or $1.95 a share,
for its latest quarter, compared with a year-earlier profit of
$1.03 billion, or $1.13 a share. Its adjusted profit fell to 83
cents a share and was short of expectations.
The company generated $34.6 billion in sales, roughly flat year
over year. Analysts polled by FactSet predicted $34.3 billion in
sales for the latest period.
In the U.S. retail unit, sales rose about 3% from a year earlier
to $27.4 billion for the latest quarter. Pharmacy sales were up
4.6%, while prescriptions filled in the third quarter decreased
1.3%.
The Covid-19 pandemic has been challenging for drugstores, as
patients put off visiting doctors and other health providers.
Walgreens is part of a coalition of health-focused companies that
is paying for advertisements that encourage people to return to
their medical providers.
"Globally, pharmacy volume was impacted by a drop in doctor
visits and hospital patient admissions," the company said.
Walgreens is working with and investing in primary-care provider
VillageMD to open 500 to 700 doctors' offices in its
drugstores.
Rival CVS Health Corp. is developing so-called health-care hubs
in its stores, offering a range of medical services. Walmart Inc.
is also adding clinics to its locations.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
July 09, 2020 08:02 ET (12:02 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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