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April 1, 2024
Walgreens Suffers $6 Billion Loss As VillageMD Clinic Investment Sours
Summary
Walgreens Boots Alliance reported a significant second-quarter loss of nearly $6 billion, primarily due to a $5.8 billion after-tax non-cash impairment charge related to its investment in VillageMD. The loss comes as Walgreens reevaluates its partnership and investment in the doctor-staffed clinic operator, leading to the scaling back of clinic expansions and the shuttering of approximately 160 locations across various states due to challenges in filling patient panels. Despite the financial setback with VillageMD, Walgreens saw a 6.3 percent increase in sales to $37.1 billion, buoyed by growth in retail pharmacy and U.S. healthcare businesses. The company remains optimistic, citing positive adjusted EBITDA in the U.S. Healthcare segment and narrowing its fiscal 2024 earnings guidance amidst a challenging retail environment.
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