Walgreens Profits Dip To $703 Million On Lower Covid ‘Vaccine And Testing Volumes’

Walgreens Boots Alliance quarterly profits fell more than 20% to $703 million thanks to “lower COVID-19 vaccine and testing volumes.”

Until this year, COVID-19 related sales of vaccines and tests have been a boon to drugstore chains like Walgreens as millions of Americans flocked to their local drugstore for tests, vaccines and booster shots in the fight against the Coronavirus.

But such sales are slowing dramatically as Americans return to normal life and the public health emergency in the U.S. ends later this spring after more than three years.

In Walgreens case, this means profits tumbled to $703 million in the fiscal second quarter ended Feb. 28 of this year compared to $883 million in the same period a year ago. “Second quarter earnings per share decreased 20.3% to 81 cents; adjusted EPS decreased 27.2% to $1.16, down 25.8% on a constant currency basis reflecting a 26% headwind from lower COVID-19 vaccine and testing volumes,” Walgreens said in its earnings report released Tuesday.

Still, Walgreens revenue during the period rose more than 3% to $34.9 billion compared to $33.8 billion in the year-ago period.

“WBA exited a solid second quarter with acceleration in February, adding to our confidence in driving strong growth in the second half of the year,” Walgreens Chief Executive Officer Rosalind Brewer said. “With the closing of VillageMD’s acquisition of Summit Health, WBA is now one of the largest players in primary care, with best-in-class assets across the care continuum.”