Walgreens Takes $6 Billion Hit from VillageMD Investment Amid Strategic Review

1. Walgreens Boots Alliance experienced a net loss of $5.91 billion in the second quarter of 2024, largely attributed to a $5.8 billion non-cash charge related to the decline in value of its investment in VillageMD.
2. VillageMD, a primary care clinic chain, closed 60 underperforming clinics and planned to exit five markets as part of a $1 billion cost-savings strategy.
3. VillageMD announced plans to close approximately 160 clinics in total.
4. Total revenue for Walgreens increased by 6.3% to $37.05 billion in the second quarter, exceeding analysts' expectations.
5. Sales at Walgreens' U.S. health-care division grew by 33.2% to $2.18 billion, boosted by VillageMD's acquisition of Summit Health.
6. Walgreens' U.S. retail pharmacy segment saw a 4.7% rise in sales to $28.86 billion, while pharmacy sales climbed 8.2%; however, retail sales dropped by 4.5% due to a "challenging retail environment" among other factors.
7. Walgreens narrowed its fiscal 2024 adjusted earnings guidance to between $3.20 and $3.35 per share.
8. The company is conducting a strategic review of its business, including the role of its retail pharmacy stores and its healthcare assets, to determine the future direction of the company.