Walgreens Boots Alliance, Inc. (WBA) Q3 2022 Earnings Call Transcript

For the period ending May 31, 2022

June 30, 2022 8:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning. My name is Chris, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Walgreens Boots Alliance Third Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session.Thank you.

Tiffany Kanaga, Vice President, Global Investor Relations, you may begin.

Tiffany Kanaga - VP, Global IR

Good morning. Thank you for joining us for the Walgreens Boots Alliance earnings call for the third quarter of fiscal year 2022. I'm Tiffany Kanaga, Vice President of Global Investor Relations. Joining me on today's call are Roz Brewer, our Chief Executive Officer; James Kehoe, our Chief Financial Officer; and John Standley, President of Walgreens.

As always, during the conference call, we anticipate making projections and forward-looking statements based on our current expectations. Our actual results could differ materially due to a number of factors, including those listed on Slide 2 and those outlined in our latest forms 10-K and 10-Q filed with the Securities and Exchange no obligation to publicly update any forward-looking statement after this presentation, whether as a result of new information, future events, changes in assumptions or otherwise. You can find our press release and the slides referenced on this call in the Investors section of the Walgreens Boots Alliance website.

The slides in the press release also contain further information about non-GAAP financial measures that we will discuss today during this call.

I will now turn the call over to Roz.

Rosalind Brewer - CEO

Thanks, Tiffany, and good morning, everyone. Walgreens Boots Alliance delivered consistent execution in the third quarter against very robust growth last year. Sales increased low single digits on a core basis in constant currency, excluding the negative impact of AllianceRx Walgreens and the 65% pro forma sales growth at Walgreens Health. The International business more than doubled its adjusted operating income with its retail sales recovery, and the U.S. segment achieved solid retail comp growth against challenging multiyear comparisons with positive traffic trends as consumers continue to depend on Walgreens for their essential needs.

Our business model is resilient, and we are now successfully navigating a difficult operating environment that is especially impacting more discretionary retail. We have been agile and proactive in managing inflationary cost pressures and supply chain disruptions while further enhancing our relevance to consumers through our loyalty, omni-channel and owned brand initiatives. Our commitment to serve local communities with convenience and real value is resonating well.