Walgreens Projects Significant Restructuring Charges On Cost Management Program

(RTTNews) - Walgreens Boots Alliance, Inc. (WBA) announced the company has launched a transformational cost management program targeting annual cost savings in excess of $1 billion by the end of the third year. The company anticipates the initiatives would result in significant restructuring and other special charges as they are implemented.

The program includes divisional optimization initiatives, global smart spending, global smart organization and digitalization of the enterprise to transform long-term capabilities. Divisional optimization has already started and includes cost reduction activities in the Pharmaceutical Wholesale division and in the retail businesses in Chile and Mexico. The company has initiated global smart spending and smart organization programs, initially focused on the Retail Pharmacy USA division, its retail business in the UK and its global functions.

For the first-quarter, adjusted earnings per share were $1.46, an increase of 14.1 percent on both a reported and constant currency basis, compared with the same quarter a year ago. Sales were $33.8 billion, an increase of 9.9 percent from the year-ago quarter, and an increase of 11.4 percent on a constant currency basis, including the benefit from acquired Rite Aid stores.

For fiscal 2019, the company maintained its guidance of 7 percent to 12 percent growth in adjusted EPS at constant currency rates.