Walgreens Boots Alliance Inc has reported a 15.5% rise in quarterly profit, as sales in its pharmacy business rose, helped by its acquisition of Rite Aid stores.
Net income attributable to Walgreens rose to $1.34 billion, or $1.35 per share, in the third quarter ended May 31, from $1.16 billion, or $1.07 per share, last year.
The company also said it had authorised a $10 billion share repurchase programme
Commenting on the group's performance, CEO Stefano Pessina said, "I am pleased that, in what has been a challenging environment, we have again delivered solid earnings per share growth combined with healthy cash flow. We expect to continue to drive growth, bringing more patients to our U.S. pharmacies through the recent acquisition of Rite Aid stores and through strategic partnerships.
"The $10 billion share repurchase program announced this morning demonstrates our confidence in future business performance and, as ever, our focus on driving long-term stockholder value."
Rite Aid Bid
Walgreens scrapped its deal to buy Rite Aid outright last year after failing to win antitrust approval, and said it would instead buy some of the smaller rival's U.S. stores.
Excluding items, the company earned $1.53 per share, beating analysts' expectations of $1.48 per share, according to Thomson Reuters I/B/E/S.
The company also said it had increased its quarterly dividend by 10 percent to 44 cents per share.
Sales at Walgreens' U.S. pharmacies rose 19.3 percent in the quarter, helped by higher prescription volumes from the Rite Aid stores.
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