Summary
Cencora, Inc. (formerly AmerisourceBergen Corporation) reported strong revenue growth in fiscal year 2013, driven by its core pharmaceutical distribution business and a significant increase in its 'Other' segment, largely due to the acquisition of World Courier in the prior year. The company's strategic focus on optimizing its distribution and specialty businesses, alongside a new ten-year distribution agreement with Walgreens (effective September 1, 2013), positions it for continued expansion. Despite revenue growth, gross profit saw a decline due to a substantial LIFO charge and lower gross profit margins in the Pharmaceutical Distribution segment, influenced by changes in customer mix and competitive pressures. Operating expenses increased, largely due to warrant expenses related to the Walgreens partnership and incremental costs from acquisitions. Net income and earnings per share experienced a notable decrease year-over-year, impacted by these factors and higher effective tax rates. The company continues to manage its capital effectively through share repurchases and dividend payments, while also navigating regulatory environments and investing in information systems to support future growth.
Financial Highlights
56 data points| Revenue | $87.96B |
| Cost of Revenue | $85.45B |
| Gross Profit | $2.51B |
| SG&A Expenses | $1.33B |
| Operating Income | $898.40M |
| Net Income | $433.71M |
| EPS (Basic) | $1.88 |
| EPS (Diluted) | $1.84 |
| Shares Outstanding (Basic) | 231K |
| Shares Outstanding (Diluted) | 235K |
Key Highlights
- 1Reported total revenue of $88.0 billion for fiscal year 2013, a 12.7% increase from the prior year, primarily driven by growth in the Pharmaceutical Distribution and Other segments.
- 2Secured a ten-year pharmaceutical distribution agreement with Walgreens, effective September 1, 2013, which is expected to significantly drive revenue growth in fiscal year 2014.
- 3Experienced a 4.8% decrease in gross profit to $2.5 billion, impacted by a significant $277.0 million LIFO charge and a 13.2% decline in Pharmaceutical Distribution gross profit.
- 4Operating expenses increased by 20.9% to $1.6 billion, largely due to a $90.1 million warrant expense related to the Walgreens strategic partnership and increased costs from recent acquisitions.
- 5Net income decreased by 39.5% to $433.7 million, and diluted earnings per share fell by 34.3% to $1.84, impacted by higher expenses and a higher effective tax rate.
- 6Maintained a strong liquidity position with $1.2 billion in cash and cash equivalents and significant availability under its revolving credit facilities.
- 7Continued to return capital to shareholders through share repurchases and dividend payments, with $363.0 million of availability remaining on its share repurchase program and a 12% increase in its quarterly dividend declared in November 2013.