Full Press Release Details
CENCORA REPORTS FISCAL 2025 FIRST QUARTER RESULTS
Revenue of $81.5 billion for the First Quarter, a 12.8 Percent Increase Year-Over-Year
First Quarter GAAP Diluted EPS of $2.50 and Adjusted Diluted EPS of $3.73
Adjusted Diluted EPS Guidance Range Raised to $15.25 to $15.55 for Fiscal 2025
CONSHOHOCKEN, PA, February 5, 2025 - Cencora, Inc. (NYSE COR) reported that in its fiscal year 2025 first quarter ended December 31, 2024, revenue increased 12.8 percent year-over-year to $81.5 billion. On the basis of U.S. generally accepted accounting principles (GAAP), diluted earnings per share (EPS) was $2.50 for the first quarter of fiscal 2025 compared to $2.98 in the prior year first quarter. Adjusted diluted EPS, which is a non-GAAP financial measure that excludes items described below, increased 13.7 percent to $3.73 in the fiscal first quarter from $3.28 in the prior year first quarter.
Cencora is updating its outlook for fiscal year 2025. The Company does not provide forward-looking guidance on a GAAP basis as discussed below in Fiscal Year 2025 Expectations. Adjusted diluted EPS guidance has been raised from the previous range of $15.15 to $15.45 to a range of $15.25 to $15.55.
"Cencora delivered an excellent start to fiscal 2025 as we focused on advancing our core capabilities and enhancing our value proposition through differentiated services and solutions," said Robert P. Mauch, President and Chief Executive Officer of Cencora. "We are excited to have closed on our acquisition of Retina Consultants of America on January 2nd, which drives forward our leadership in Specialty and will help us continue to deliver on our strategic imperatives."
"Our team members' dedication to leading with a customer-centric approach and executing on our pharmaceutical-centric strategy enables us to maintain our position as a leading healthcare services provider and drive value for our customers, partners and shareholders," Mauch continued.
First Quarter Fiscal Year 2025 Summary Results
| GAAP | Adjusted (Non-GAAP) | |
| Revenue | $81.5B | $81.5B |
| Gross Profit | $2.6B | $2.5B |
| Operating Expenses | $1.9B | $1.6B |
| Operating Income | $706M | $949M |
| Interest Expense, Net | $28M | $28M |
| Effective Tax Rate | 20.4% | 20.0% |
| Net Income Attributable to Cencora, Inc. | $489M | $728M |
| Diluted Earnings Per Share | $2.50 | $3.73 |
| Diluted Shares Outstanding | 195.2M | 195.2M |
Below, Cencora presents descriptive summaries of the Company's GAAP and adjusted (non-GAAP) quarterly results. In the tables that follow, GAAP results and GAAP to non-GAAP reconciliations are presented. For more information related to non-GAAP financial measures, including adjustments made in the periods presented, please refer to the "Supplemental Information Regarding Non-GAAP Financial Measures" following the tables.
First Quarter GAAP Results
Revenue In the first quarter of fiscal 2025, revenue was $81.5 billion, up 12.8 percent compared to the same quarter in the previous fiscal year, primarily due to a 13.6 percent increase in revenue within the U.S. Healthcare Solutions segment.
Gross Profit Gross profit in the first quarter of fiscal 2025 was $2.6 billion, a 3.6 percent increase compared to the same period in the previous fiscal year, primarily due to the increases in gross profit in both reportable segments, offset in part by a decrease in the LIFO credit and lower gains from antitrust litigation settlements. Gross profit as a percentage of revenue was 3.14 percent, a decrease of 28 basis points from the prior year quarter due to the decline in U.S. Healthcare Solutions gross profit margin primarily due to increased sales of products labeled for diabetes and or weight loss in the GLP-1 class, which have lower gross profit margins, lower COVID-19 vaccine sales and a lack of exclusive COVID-19 therapy sales, which have higher gross profit margins.
Operating Expenses In the first quarter of fiscal 2025, operating expenses were $1.9 billion, a 12.5 percent increase compared to the same quarter in the previous fiscal year, primarily due to litigation and opioid-related expenses, which was a credit in the prior year quarter due to an opioid litigation settlement accrual reduction, and an increase in distribution, selling, and administrative expenses to support revenue growth.
Operating Income In the first quarter of fiscal 2025, operating income was $706.3 million, a 14.2 percent decrease compared to the same period in the previous fiscal year due to the increase in operating expenses, offset in part by the increase in gross profit. Operating income as a percentage of revenue was 0.87 percent in the first quarter of fiscal 2025 compared to 1.14 percent for the same period in the previous fiscal year.
Interest Expense, Net In the first quarter of fiscal 2025, net interest expense of $27.9 million decreased 31.1 percent compared to the same quarter in the previous fiscal year due to an increase in interest income as a result of higher average investment cash balances and higher investment interest rates outside the United States, offset in part by an increase in interest expense. Interest expense increased as a result of the issuance of $1.8 billion of senior notes in December 2024 to finance a portion of the Retina Consultants of America (RCA) acquisition and increased intra-period borrowings to cover seasonal short-term working capital needs, offset in part by a decrease in foreign subsidiary borrowings.
Effective Tax Rate The effective tax rate was 20.4 percent for the first quarter of fiscal 2025. The effective tax rate was 23.0 percent in the prior year quarter.
Diluted Earnings Per Share Diluted earnings per share was $2.50 in the first quarter of fiscal 2025, a 16.1 percent decrease compared to $2.98 in the previous fiscal year's first quarter.
Diluted Shares Outstanding Diluted weighted average shares outstanding for the first quarter of fiscal 2025 were 195.2 million, a decrease of 3.3 percent versus the prior fiscal year first quarter primarily due to share repurchases.
First Quarter Adjusted (non-GAAP) Results
Revenue No adjustments were made to the GAAP presentation of revenue. In the first quarter of fiscal 2025, revenue was $81.5 billion, up 12.8 percent compared to the same quarter in the previous fiscal year, primarily due to a 13.6 percent increase in revenue within the U.S. Healthcare Solutions segment.
Adjusted Gross Profit Adjusted gross profit in the first quarter of fiscal 2025 was $2.5 billion, a 6.1 percent increase compared to the same period in the previous fiscal year due to the increase in gross profit in both reportable segments. Adjusted gross profit as a percentage of revenue was 3.11 percent in the fiscal 2025 first quarter, a decrease of 20 basis points from the prior year quarter due to the decline in U.S. Healthcare Solutions gross profit margin primarily due to increased sales of products labeled for diabetes and or weight loss in the GLP-1 class, which have lower gross profit margins, lower COVID-19 vaccine sales and a lack of exclusive COVID-19 therapy sales, which have higher gross profit margins.
Adjusted Operating Expenses In the first quarter of fiscal 2025, adjusted operating expenses were $1.6 billion, a 5.5 percent increase compared to the same period in the previous fiscal year, primarily driven by an increase in distribution, selling, and administrative expenses to support revenue growth.
Adjusted Operating Income In the first quarter of fiscal 2025, adjusted operating income was $949.3 million, a 7.2 percent increase compared to the same period in the prior fiscal year, driven by a 9.9 percent increase in the U.S. Healthcare Solutions segment, partially offset by a 2.9 percent decrease in the International Healthcare Solutions segment. Adjusted operating income as a percentage of revenue was 1.16 percent in the fiscal 2025 first quarter, a decrease of 7 basis points when compared to the prior year quarter.
Interest Expense, Net No adjustments were made to the GAAP presentation of net interest expense. In the first quarter of fiscal 2025, net interest expense of $27.9 million decreased 31.1 percent compared to the same quarter in the previous fiscal year due to an increase in interest income as a result of higher average investment cash balances and higher investment interest rates outside the United States, offset in part by an increase in interest expense. Interest expense increased as a result of the issuance of $1.8 billion of senior notes in December 2024 to finance a portion of the RCA acquisition and increased intra-period borrowings to cover seasonal short-term working capital needs, offset in part by a decrease in foreign subsidiary borrowings.
Adjusted Effective Tax Rate The adjusted effective tax rate was 20.0 percent for the first quarter of fiscal 2025 compared to 21.0 percent in the prior year quarter.
Adjusted Diluted Earnings Per Share Adjusted diluted earnings per share was $3.73 in the first quarter of fiscal 2025, a 13.7 percent increase compared to $3.28 in the previous fiscal year's first quarter.
Diluted Shares Outstanding No adjustments were made to the GAAP presentation of diluted shares outstanding. Diluted weighted average shares outstanding for the first quarter of fiscal 2025 were 195.2 million, a decrease of 3.3 percent versus the prior fiscal year first quarter primarily due to share repurchases.
The Company is organized geographically based upon the products and services it provides to its customers under two reportable segments U.S. Healthcare Solutions and International Healthcare Solutions.
U.S. Healthcare Solutions
U.S. Healthcare Solutions revenue was $74.0 billion in the first quarter of fiscal 2025, an increase of 13.6 percent compared to the same quarter in the previous fiscal year due to overall market growth primarily driven by unit volume growth, including increased sales of products labeled for diabetes and or weight loss in the GLP-1 class and increased sales of specialty products to physician practices and health systems. Segment operating income of $767.3 million in the first quarter of fiscal 2025 was up 9.9 percent compared to the same period in the previous fiscal year primarily due to the increase in gross profit, offset in part by the increase in operating expenses.
International Healthcare Solutions
International Healthcare Solutions revenue was $7.5 billion in the first quarter of fiscal 2025, an increase of 5.5 percent compared to the previous fiscal year's first quarter primarily due to increased sales at our European distribution business. Segment operating income in the first quarter of fiscal 2025 was $182.1 million, a decrease of 2.9 percent, primarily due to lower operating income at our global specialty logistics business, offset in part by an increase at our European distribution business. On a constant currency basis, International Healthcare Solutions revenue and operating income increased by 8.5 percent and 3.3 percent, respectively.
Recent Company Highlights Milestones
Cencora completed the acquisition of RCA, a leading management services organization of retina specialists, on January 2, 2025.
Fiscal Year 2025 Expectations
The Company does not provide forward-looking guidance on a GAAP basis as to certain financial information, where the probable significance of the information cannot be determined, is not available or cannot be reasonably estimated. Please refer to the Supplemental Information Regarding Non-GAAP Financial Measures following the tables for additional information.
Fiscal Year 2025 Expectations on an Adjusted (non-GAAP) Basis
On January 2, 2025, Cencora updated its fiscal year 2025 financial guidance only for adjusted diluted EPS following the closing of the RCA acquisition to reflect the expected contribution from RCA and momentum in the U.S. Healthcare Solutions reportable segment.
Cencora is now updating its fiscal year 2025 adjusted diluted EPS guidance to better reflect the continued momentum in the U.S. Healthcare Solutions reportable segment. Additionally, the Company is updating its fiscal year 2025 financial guidance expectations for revenue, operating income and net interest expense to reflect the impact of the RCA acquisition and the continued momentum in the U.S. Healthcare Solutions segment. The Company now expects
Revenue growth to be in the range of 8 to 10 percent, from the previous range of 7 to 9 percent
U.S. Healthcare Solutions revenue growth to be in the range of 9 to 11 percent, from the previous range of 7 to 9 percent
International Healthcare Solutions revenue growth to be in the range of 4 to 5 percent, from the previous range of 7 to 9 percent
Adjusted diluted EPS to be in the range of $15.25 to $15.55, up from the previous range of $15.15 to $15.45 provided on January 2, 2025 and the initial guidance range of $14.80 to $15.10.
Additional expectations now include
Adjusted consolidated operating income growth to be in the range of 11.5 to 13.5 percent, from the previous range of 5 to 6.5 percent
U.S. Healthcare Solutions segment operating income growth to be in the range of 14.5 to 16.5 percent, from the previous range of 5 to 6.5 percent
International Healthcare Solutions segment as reported operating income growth to be flat, from the previous range of 5 to 6.5 percent
On a constant currency basis, International Healthcare Solutions segment operating income growth to be approximately 5 percent
Net interest expense to be in the range of $290 million to $310 million, from the previous range of $150 million to $170 million and
Weighted average diluted shares outstanding is expected to be under 196 million, from the previous expectation of approximately 196 million.
For additional details regarding updated guidance expectations on a constant currency basis, please refer to our slide presentation for investors.
Dividend Declaration
The Company's Board of Directors declared a quarterly cash dividend of $0.55 per common share, payable March 3, 2025, to stockholders of record at the close of business on February 14, 2025.
Conference Call Slide Presentation
The Company will host a conference call to discuss its operating results at 8 30 a.m. ET on February 5, 2025. A slide presentation for investors has also been posted on the Company's website at investor.cencora.com. Participating in the conference call will be
Robert P. Mauch, President Chief Executive Officer
James F. Cleary, Executive Vice President Chief Financial Officer
The dial-in number for the live call will be (833) 470-1428. From outside the United States and Canada, dial +1 (404) 975-4839. The access code for the call will be 427679. The live call will also be webcast via the Company's website at investor.cencora.com. Users are encouraged to log on to the webcast approximately 10 minutes in advance of the scheduled start time of the call.
Replays of the call will be made available via telephone and webcast. A replay of the webcast will be posted on investor.cencora.com approximately one hour after the completion of the call and will remain available for one year. The telephone replay will also be available approximately one hour after the completion of the call and will remain available for seven days. To access the telephone replay from within the U.S. and Canada, dial (866) 813-9403. From outside the United States, dial +1 (929) 458-6194. The access code for the replay is 402593.
Upcoming Investor Events
Cencora management will be attending the following investor event in the coming months
Leerink Partners Global Healthcare Conference, March 10-12, 2025.
Please check the website for updates regarding the timing of the live presentation webcasts, if any, and for replay information.
Cencora is a leading global pharmaceutical solutions organization centered on improving the lives of people and animals around the world. We partner with pharmaceutical innovators across the value chain to facilitate and optimize market access to therapies. Care providers depend on us for the secure, reliable delivery of pharmaceuticals, healthcare products, and solutions. Our 46,000+ worldwide team members contribute to positive health outcomes through the power of our purpose We are united in our responsibility to create healthier futures. Cencora is ranked #10 on the Fortune 500 and #18 on the Global Fortune 500 with more than $290 billion in annual revenue. Learn more at investor.cencora.com
Cencora's Cautionary Note Regarding Forward-Looking Statements
Certain of the statements contained in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Securities Exchange Act"). Words such as aim, anticipate, believe, can, continue, could, estimate, expect, intend, may, might, on track, opportunity, plan, possible, potential, predict, project," seek, should, strive, sustain, synergy, target, will, would and similar expressions are intended to identify such forward-looking statements, but the absence of these words does not mean the statement is not forward-looking. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances and speak only as of the date hereof. These statements are not guarantees of future performance and are based on assumptions and estimates that could prove incorrect or could cause actual results to vary materially from those indicated. A more detailed discussion of the risks and uncertainties that could cause our actual results to differ materially from those indicated is included (i) in the Risk Factors and Management's Discussion and Analysis sections in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2024 and elsewhere in that report and (ii) in other reports filed by the Company pursuant to the Securities Exchange Act. The Company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by the federal securities laws.
(in thousands, except per share data)
| Three Months Ended December 31, 2024 | % of Revenue | Three Months Ended December 31, 2023 | % of Revenue | % Change | ||||||||||
| Revenue | $ | 81,487,060 | $ | 72,252,833 | 12.8% | |||||||||
| Cost of goods sold | 78,929,022 | 69,784,021 | 13.1% | |||||||||||
| Gross profit 1 | 2,558,038 | 3.14% | 2,468,812 | 3.42% | 3.6% | |||||||||
| Operating expenses | ||||||||||||||
| Distribution, selling, and administrative | 1,472,055 | 1.81% | 1,398,747 | 1.94% | 5.2% | |||||||||
| Depreciation and amortization | 278,492 | 0.34% | 270,603 | 0.37% | 2.9% | |||||||||
| Litigation and opioid-related expenses (credit), net 2 | 16,765 | (78,917) | ||||||||||||
| Acquisition-related deal and integration expenses | 38,712 | 21,063 | ||||||||||||
| Restructuring and other expenses | 45,760 | 34,441 | ||||||||||||
| Total operating expenses | 1,851,784 | 2.27% | 1,645,937 | 2.28% | 12.5% | |||||||||
| Operating income | 706,254 | 0.87% | 822,875 | 1.14% | (14.2)% | |||||||||
| Other loss (income), net 3 | 57,874 | (1,087) | ||||||||||||
| Interest expense, net | 27,933 | 40,564 | (31.1)% | |||||||||||
| Income before income taxes | 620,447 | 0.76% | 783,398 | 1.08% | (20.8)% | |||||||||
| Income tax expense | 126,728 | 180,390 | ||||||||||||
| Net income | 493,719 | 0.61% | 603,008 | 0.83% | (18.1)% | |||||||||
| Net income attributable to noncontrolling interests | (5,119) | (1,508) | ||||||||||||
| Net income attributable to Cencora, Inc. | $ | 488,600 | 0.60% | $ | 601,500 | 0.83% | (18.8)% | |||||||
| Earnings per share | ||||||||||||||
| Basic | $ | 2.52 | $ | 3.01 | (16.3)% | |||||||||
| Diluted | $ | 2.50 | $ | 2.98 | (16.1)% | |||||||||
| Weighted average common shares outstanding | ||||||||||||||
| Basic | 193,758 | 200,081 | (3.2)% | |||||||||||
| Diluted | 195,188 | 201,837 | (3.3)% |
________________________________________
1 Includes a $22.9 million gain from antitrust litigation settlements, a $7.3 million LIFO credit, and Turkey foreign currency remeasurement expense of $7.2 million in the three months ended December 31, 2024. Includes a $48.2 million gain from antitrust litigation settlements, a $48.4 million LIFO credit, and Turkey foreign currency remeasurement expense of $17.2 million in the three months ended December 31, 2023.
2 The three months ended December 31, 2023 includes a net $92.2 million opioid litigation settlement accrual reduction primarily as a result of the Company's commitment, which it made in December 2023, to prepay the net present value of a future obligation as permitted under its opioid settlement agreements.
3 Includes a $35.5 million loss on the divestiture of non-core businesses in the three months ended December 31, 2024.
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands, except per share data)
| Three Months Ended December 31, 2024 | ||||||||||||||||||||||||
| Gross Profit | Operating Expenses | Operating Income | Income Before Income Taxes | Income Tax Expense | Net Income Attributable to Cencora | Diluted Earnings Per Share | ||||||||||||||||||
| GAAP | $ | 2,558,038 | $ | 1,851,784 | $ | 706,254 | $ | 620,447 | $ | 126,728 | $ | 488,600 | $ | 2.50 | ||||||||||
| Gains from antitrust litigation settlements | (22,870) | - | (22,870) | (22,870) | (6,530) | (16,340) | (0.08) | |||||||||||||||||
| LIFO credit | (7,324) | - | (7,324) | (7,324) | (2,092) | (5,232) | (0.03) | |||||||||||||||||
| Turkey highly inflationary impact | 7,155 | - | 7,155 | 7,666 | - | 7,666 | 0.04 | |||||||||||||||||
| Acquisition-related intangibles amortization | - | (164,856) | 164,856 | 164,856 | 47,075 | 117,347 | 0.60 | |||||||||||||||||
| Litigation and opioid-related expenses | - | (16,765) | 16,765 | 16,765 | 4,787 | 11,978 | 0.06 | |||||||||||||||||
| Acquisition-related deal and integration expenses | - | (38,712) | 38,712 | 38,712 | 11,054 | 27,658 | 0.14 | |||||||||||||||||
| Restructuring and other expenses | - | (45,760) | 45,760 | 45,760 | 13,067 | 32,693 | 0.17 | |||||||||||||||||
| Gain on remeasurement of equity investment | - | - | - | (3,480) | - | (3,480) | (0.02) | |||||||||||||||||
| Loss on divestiture of non-core businesses | - | - | - | 35,539 | - | 35,539 | 0.18 | |||||||||||||||||
| Other, net | - | - | - | 5,411 | 923 | 4,488 | 0.02 | |||||||||||||||||
| Tax reform 1 | - | - | - | 15,204 | (11,675) | 26,879 | 0.14 | |||||||||||||||||
| Adjusted Non-GAAP | $ | 2,534,999 | $ | 1,585,691 | $ | 949,308 | $ | 916,686 | $ | 183,337 | $ | 727,796 | $ | 3.73 | 2 | |||||||||
| Adjusted Non-GAAP % change vs. prior year | 6.1 | % | 5.5 | % | 7.2 | % | 9.2 | % | 4.0 | % | 10.0 | % | 13.7 | % |
| Percentages of Revenue | GAAP | Adjusted Non-GAAP | ||
| Gross profit | 3.14% | 3.11% | ||
| Operating expenses | 2.27% | 1.95% | ||
| Operating income | 0.87% | 1.16% |
________________________________________
1 Tax reform includes the foreign currency remeasurement of Swiss deferred tax assets arising from 2020 Swiss tax reform and the amortization of those deferred tax assets.
2 The sum of the components does not equal the total due to rounding.
Note For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands, except per share data)
| Three Months Ended December 31, 2023 | |||||||||||||||||||||||||||||||
| Gross Profit | Operating Expenses | Operating Income | Income Before Income Taxes | Income Tax Expense | Net Income Attributable to Cencora | Diluted Earnings Per Share | |||||||||||||||||||||||||
| GAAP | $ | 2,468,812 | $ | 1,645,937 | $ | 822,875 | $ | 783,398 | $ | 180,390 | $ | 601,500 | $ | 2.98 | |||||||||||||||||
| Gains from antitrust litigation settlements | (48,248) | - | (48,248) | (48,248) | (10,456) | (37,792) | (0.19) | ||||||||||||||||||||||||
| LIFO credit | (48,445) | - | (48,445) | (48,445) | (10,498) | (37,947) | (0.19) | ||||||||||||||||||||||||
| Turkey highly inflationary impact | 17,226 | - | 17,226 | 16,919 | - | 16,919 | 0.08 | ||||||||||||||||||||||||
| Acquisition-related intangibles amortization | - | (165,724) | 165,724 | 165,724 | 35,913 | 129,376 | 0.64 | ||||||||||||||||||||||||
| Litigation and opioid-related credit, net 1 | - | 78,917 | (78,917) | (78,917) | (12,028) | (66,889) | (0.33) | ||||||||||||||||||||||||
| Acquisition-related deal and integration expenses | - | (21,063) | 21,063 | 21,063 | 4,564 | 16,499 | 0.08 | ||||||||||||||||||||||||
| Restructuring and other expenses | - | (34,441) | 34,441 | 34,441 | 7,463 | 26,978 | 0.13 | ||||||||||||||||||||||||
| Loss on remeasurement of equity investment | - | - | - | 10,201 | - | 10,201 | 0.05 | ||||||||||||||||||||||||
| Other, net | - | - | - | 222 | (109) | 331 | - | ||||||||||||||||||||||||
| Tax reform 2 | - | - | - | (16,685) | (18,916) | 2,231 | 0.01 | ||||||||||||||||||||||||
| Adjusted Non-GAAP | $ | 2,389,345 | $ | 1,503,626 | $ | 885,719 | $ | 839,673 | $ | 176,323 | $ | 661,407 | $ | 3.28 | 3 |
| Percentages of Revenue | GAAP | Adjusted Non-GAAP | ||
| Gross profit | 3.42% | 3.31% | ||
| Operating expenses | 2.28% | 2.08% | ||
| Operating income | 1.14% | 1.23% |
________________________________________
1 Includes a net $92.2 million opioid litigation settlement accrual reduction primarily as a result of the Company's commitment, which it made in December 2023, to prepay the net present value of a future obligation as permitted under its opioid settlement agreements.
2 Tax reform includes the foreign currency remeasurement of Swiss deferred tax assets arising from 2020 Swiss tax reform and the amortization of those deferred tax assets.
3 The sum of the components does not equal the total due to rounding.
Note For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
SUMMARY SEGMENT INFORMATION
| Three Months Ended December 31, | ||||||||||
| Revenue | 2024 | 2023 | % Change | |||||||
| U.S. Healthcare Solutions | $ | 74,033,128 | $ | 65,183,802 | 13.6% | |||||
| International Healthcare Solutions | 7,457,341 | 7,070,227 | 5.5% | |||||||
| Intersegment eliminations | (3,409) | (1,196) | ||||||||
| Revenue | $ | 81,487,060 | $ | 72,252,833 | 12.8% |
| Three Months Ended December 31, | ||||||||||
| Operating income | 2024 | 2023 | % Change | |||||||
| U.S. Healthcare Solutions | $ | 767,344 | $ | 698,124 | 9.9% | |||||
| International Healthcare Solutions | 182,093 | 187,595 | (2.9)% | |||||||
| Intersegment eliminations | (129) | - | ||||||||
| Total segment operating income | 949,308 | 885,719 | 7.2% | |||||||
| Gains from antitrust litigation settlements | 22,870 | 48,248 | ||||||||
| LIFO credit | 7,324 | 48,445 | ||||||||
| Turkey highly inflationary impact | (7,155) | (17,226) | ||||||||
| Acquisition-related intangibles amortization | (164,856) | (165,724) | ||||||||
| Litigation and opioid-related (expenses) credit, net | (16,765) | 78,917 | ||||||||
| Acquisition-related deal and integration expenses | (38,712) | (21,063) | ||||||||
| Restructuring and other expenses | (45,760) | (34,441) | ||||||||
| Operating income | $ | 706,254 | $ | 822,875 | (14.2)% | |||||
| Percentages of Revenue | ||||||||||
| U.S. Healthcare Solutions | ||||||||||
| Gross profit | 2.28% | 2.41% | ||||||||
| Operating expenses | 1.24% | 1.34% | ||||||||
| Operating income | 1.04% | 1.07% | ||||||||
| International Healthcare Solutions | ||||||||||
| Gross profit | 11.40% | 11.56% | ||||||||
| Operating expenses | 8.96% | 8.91% | ||||||||
| Operating income | 2.44% | 2.65% | ||||||||
| Cencora, Inc. (GAAP) | ||||||||||
| Gross profit | 3.14% | 3.42% | ||||||||
| Operating expenses | 2.27% | 2.28% | ||||||||
| Operating income | 0.87% | 1.14% | ||||||||
| Cencora, Inc. (Non-GAAP) | ||||||||||
| Adjusted gross profit | 3.11% | 3.31% | ||||||||
| Adjusted operating expenses | 1.95% | 2.08% | ||||||||
| Adjusted operating income | 1.16% | 1.23% |
Note For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
CONDENSED CONSOLIDATED BALANCE SHEETS
| December 31, | September 30, | ||||||
| 2024 | 2024 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 3,224,260 | $ | 3,132,648 | |||
| Accounts receivable, net | 24,545,724 | 23,871,815 | |||||
| Inventories | 20,508,020 | 18,998,833 | |||||
| Right to recover assets | 1,192,707 | 1,175,871 | |||||
| Prepaid expenses and other | 515,923 | 538,646 | |||||
| Total current assets | 49,986,634 | 47,717,813 | |||||
| Property and equipment, net | 2,099,787 | 2,181,410 | |||||
| Goodwill and other intangible assets | 12,859,456 | 13,319,073 | |||||
| Deferred income taxes | 219,417 | 246,348 | |||||
| Other long-term assets | 3,889,020 | 3,637,023 | |||||
| Total assets | $ | 69,054,314 | $ | 67,101,667 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 49,910,853 | $ | 50,942,162 | |||
| Accrued expenses and other | 2,385,026 | 2,758,560 | |||||
| Short-term debt | 2,213,226 | 576,331 | |||||
| Total current liabilities | 54,509,105 | 54,277,053 | |||||
| Long-term debt | 5,935,321 | 3,811,745 | |||||
| Accrued income taxes | 303,433 | 291,796 | |||||
| Deferred income taxes | 1,585,936 | 1,643,746 | |||||
| Accrued litigation liability | 4,296,902 | 4,296,902 | |||||
| Other long-term liabilities | 2,061,715 | 1,993,683 | |||||
| Total equity | 361,902 | 786,742 | |||||
| Total liabilities and stockholders' equity | $ | 69,054,314 | $ | 67,101,667 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| Three Months Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Operating Activities | |||||||
| Net income | $ | 493,719 | $ | 603,008 | |||
| Adjustments to reconcile net income to net cash (used in) provided by operating activities | 390,098 | 336,514 | |||||
| Changes in operating assets and liabilities, excluding the effects of acquisitions and divestitures | |||||||
| Accounts receivable | (974,256) | (504,086) | |||||
| Inventories | (1,655,165) | (1,095,530) | |||||
| Accounts payable | (654,165) | 1,765,103 | |||||
| Other, net | (319,013) | (219,852) | |||||
| Net cash (used in) provided by operating activities | (2,718,782) | 885,157 | |||||
| Investing Activities | |||||||
| Capital expenditures | (105,893) | (74,217) | |||||
| Cost of acquired companies, net of cash acquired | (9,015) | - | |||||
| Cost of equity investments | (182,014) | (5,563) | |||||
| Other, net | (46,117) | 13,980 | |||||
| Net cash used in investing activities | (343,039) | (65,800) | |||||
| Financing Activities | |||||||
| Net debt borrowings (repayments) 1 | 3,788,240 | (10,469) | |||||
| Purchases of common stock | (385,471) | (385,533) | |||||
| Exercises of stock options | 8,108 | 10,926 | |||||
| Cash dividends on common stock | (110,888) | (105,690) | |||||
| Employee tax withholdings related to restricted share vesting | (73,963) | (56,248) | |||||
| Other, net | (16,876) | (4,655) | |||||
| Net cash provided by (used in) financing activities | 3,209,150 | (551,669) | |||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (50,235) | 15,544 | |||||
| Increase in cash, cash equivalents, and restricted cash | 97,094 | 283,232 | |||||
| Cash, cash equivalents, and restricted cash at beginning of period 2 | 3,297,880 | 2,752,889 | |||||
| Cash, cash equivalents, and restricted cash at end of period 2 | $ | 3,394,974 | $ | 3,036,121 |
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