Business & Investment

Walgreens maintains its full-year profit growth forecast.Stock price rise due to Reuters

© Reuters.There is a sign at the Walgreens Pharmacy counter in Austin, Texas


By Mrinalika Roy and Dania Nadeem

(Reuters)-Walgreens Boots Alliance (NASDAQ :) Inc said Thursday, hoping to benefit from COVID-19 vaccination to mitigate the effects of pandemic regulation, sticking to full-year earnings growth forecasts and increasing market share by 7% It was. ..

The drug store chain profits after the health crisis hit sales, cut jobs, closed UK-based boot stores and sold its distribution unit to AmerisourceBergen (NYSE :) Corp for $ 6.5 billion. We have taken some steps to increase the number of people.

Rivals CVS Health Corp (NYSE :) and Walgreens have agreed with the federal government to vaccinate nursing home residents across the United States through a voluntary program.

Walgreens said it expects to benefit from COVID-19 vaccination in the second half of fiscal year 2021.

“Vaccination of long-term care facilities is not a particularly profitable business,” said Stefano Pessina, chief executive officer.

“That said, the vaccine will be added to the profile later this year, and that’s why … we changed the tone of the guidance.”

Walgreens maintained its 2021 forecast of low single-digit growth in adjusted EPS after surpassing analysts’ estimates of adjusted first-quarter profits.

Boots UK pharmacy same-store sales grew 2.5% this quarter, while sales grew 106%.

Walgreens expects its UK operations to grow significantly in the second half of this year due to cost savings. But the company warned that the blockade in the UK could have a negative impact on its business.

“It’s a big negative and big question mark, and we basically keep the guidance because it’s blocked in the UK until mid-February,” said Chief Financial Officer James Keeho.

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Walgreens maintains its full-year profit growth forecast.Stock price rise due to Reuters Walgreens maintains its full-year profit growth forecast.Stock price rise due to Reuters

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