On Thursday, Walgreens Boots Alliance, Inc. (NASDAQ: WBA) announced its financial results for the first quarter of 2018. Shares of the company dropped 6.3% after the announcement.
According to the company, for the first quarter, net sales increased 7.9% to $30.74 billion, which beat analysts’ estimates of $30.35 billion. Adjusted earnings per share for the first quarter was $1.28 per share, beating estimates of $1.26 per share.
However, net income for the first quarter dropped 22.1% to $821 million, or $0.81 per share, from $1.05 billion, or $0.97 per share, for the same period last year. The decreased in net income was mainly due to an impairment charge related to its investment in Guangzhou Pharmaceuticals, the company’s wholesale partner.
“I am pleased that we delivered another strong performance in the first quarter, led by continued prescription volume and market share growth in Retail Pharmacy USA. At the same time, we continue to position our company for future growth with the acquisition of the first Rite Aid stores following regulatory clearance for the transaction in September,” Stefano Pessina, the Executive Vice Chairman and CEO of the company, said in the statement on Thursday.
“Since the end of the quarter, we announced an agreement to acquire 40 percent of Sinopharm Holding Guoda Drugstores Co., Ltd., a leading retail pharmacy chain in China, where regulatory changes have allowed us to prioritize retail opportunities,” Stefano said.