Walgreens Boots Alliance's Q3 results take a hit as COVID-19 causes fewer prescriptions

Walgreens Boots Alliance said July 9 the pandemic hurt its third-quarter fiscal results, primarily because fewer people went to a physician and received a prescription, CNBC reported. 

The company said its profits were mostly brought down in its U.K. business and because of increased sales of low-margin items, higher supply chain costs and higher expenses for labor and store cleaning. 

Walgreens shares were down nearly 7 percent the morning of July 9, according to CNBC.

The company said it would cut more than 4,000 jobs in the U.K. and shut 48 optician centers there. 

Its third quarter earnings per share were 83 cents versus an expected $1.17, but revenue was slightly higher than expected, at $34.63 billion versus $34.36 billion. 

Walgreens posted a net loss of $1.71 billion in the third quarter, CNBC reported. 

At U.S. stores that have been open at least a year, sales rose 3 percent over last year. Same-store pharmacy sales also rose 3.5 percent over last year. Walgreens said brand inflation and an increase in specialty sales offset the drop in prescription volumes caused by COVID-19. 

Same-store retail sales also grew by 1.9 percent in the third quarter due to strong demand for vitamins and protective equipment, such as masks, CNBC reported. 

Read the full article here.

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