Summary
Cencora, Inc. (formerly AmerisourceBergen Corporation) reported a revenue increase of 4.3% for the fiscal year ended September 30, 2017, reaching $153.14 billion. This growth was primarily driven by its Pharmaceutical Distribution Services segment. Despite increased revenue, operating income saw a decline from $1.53 billion in the prior year to $1.06 billion, largely due to significant litigation settlements and accruals totaling $914.4 million recognized during the fiscal year. The company also experienced a substantial increase in its effective tax rate to 60.3% in fiscal year 2017, impacted by non-deductible legal settlements. The company continues to execute its strategy focused on optimizing and growing its pharmaceutical distribution and global sourcing businesses, as well as its global commercialization services and animal health segments. Strategic acquisitions remain a key component of its growth strategy. Cencora operates a vast distribution network and serves a diverse customer base, with its two largest customers, Walgreens Boots Alliance and Express Scripts, accounting for approximately 45% of its revenue. The company also highlighted its commitment to shareholder returns through dividend increases and share repurchases.
Financial Highlights
55 data points| Revenue | $153.14B |
| Cost of Revenue | $148.60B |
| Gross Profit | $4.55B |
| SG&A Expenses | $2.13B |
| Operating Income | $1.06B |
| Net Income | $364.48M |
| EPS (Basic) | $1.67 |
| EPS (Diluted) | $1.64 |
| Shares Outstanding (Basic) | 218.38M |
| Shares Outstanding (Diluted) | 221.60M |
Key Highlights
- 1Revenue increased by 4.3% to $153.14 billion in fiscal year 2017, driven by the Pharmaceutical Distribution Services segment.
- 2Operating income decreased to $1.06 billion from $1.53 billion in the prior year, primarily due to $914.4 million in litigation settlements and accruals.
- 3The company's effective tax rate increased significantly to 60.3% in fiscal year 2017, impacted by non-deductible legal settlements.
- 4Cencora continues to focus on strategic growth through its core distribution services, global commercialization, and animal health businesses, alongside pursuing acquisitions.
- 5The company announced a plan to acquire H.D. Smith for $815 million, signaling continued investment in expanding its distribution scale.
- 6Walgreens Boots Alliance and Express Scripts remain significant customers, collectively representing approximately 45% of total revenue.
- 7Quarterly dividends per share have seen consistent increases, with a 4% rise announced in November 2017.