What was the primary factor impacting Cencora's net income in fiscal year 2020?

The primary factor impacting Cencora's net income in fiscal year 2020 was a substantial legal accrual of $6.6 billion related to opioid litigation, which led to a net loss of $3.4 billion for the year.

How did Cencora's revenue perform in fiscal year 2020?

Cencora's revenue increased by 5.7% to $189.9 billion for the fiscal year ended September 30, 2020, primarily driven by growth in its Pharmaceutical Distribution Services segment, which benefited from strong specialty product sales and key customer relationships.

What are Cencora's key business segments, and how did they perform?

Cencora operates primarily through two segments: Pharmaceutical Distribution Services and Other. The Pharmaceutical Distribution Services segment experienced revenue growth of 5.6%. The Other segment, which includes MWI Animal Health and Global Commercialization Services, saw a 9.6% increase in revenue.

What is the company's outlook regarding dividends?

Cencora's board of directors has a history of increasing quarterly dividends. In November 2020, they approved a 5% increase, bringing the quarterly dividend to $0.44 per share, and the company anticipates continuing to pay quarterly cash dividends.

What are the major risks Cencora highlighted in this filing?

Key risks highlighted include unfavorable pharmaceutical pricing trends, intense competition and industry consolidation, potential customer or supplier credit failures, impacts from the COVID-19 pandemic on operations and demand, and significant legal and regulatory risks, including ongoing opioid litigation and evolving government regulations.

COR 10-K FY2020 Annual Report — Revenue, Net Income, EPS

Summary

Cencora, Inc. (formerly AmerisourceBergen Corporation) reported significant changes in its fiscal year 2020, primarily driven by a substantial legal accrual related to opioid litigation. While revenue saw a healthy increase of 5.7% year-over-year, reaching nearly $190 billion, the company recorded a net loss of $3.4 billion due to the $6.6 billion legal accrual. This accrual significantly impacted operating income and diluted earnings per share. Despite this, the company highlighted revenue growth in its Pharmaceutical Distribution Services segment, driven by specialty products and key customer relationships, and also saw growth in its Other segments (MWI Animal Health, Global Commercialization Services). Looking ahead, Cencora's strategy remains focused on optimizing its pharmaceutical distribution and global commercialization services, with continued investment in technology and automation. The company also faces ongoing risks related to pricing pressures, competition, regulatory changes, and the broader economic impact of the COVID-19 pandemic, which it actively manages while pursuing strategic growth initiatives.

Financial Highlights

56 data points

Beta

Revenue

$189.89B

0.0% Gross Margin

Net Income

-$3.41B

-0.0% Net Margin

EPS (Diluted)

$-16.65

Total Assets

$44.27B

Cash & Equivalents

$4.60B

Free Cash Flow

$1.84B

Financial Statements

Beta

Revenue	$189.89B
Cost of Revenue	$184.70B
Gross Profit	$5.19B
SG&A Expenses	$2.77B
Operating Income	-$5.14B
Net Income	-$3.41B
EPS (Basic)	$-16.65
EPS (Diluted)	$-16.65
Shares Outstanding (Basic)	204.78M
Shares Outstanding (Diluted)	204.78M

Key Highlights

1Revenue increased by 5.7% to $189.9 billion for the fiscal year ended September 30, 2020.
2The company recorded a significant legal accrual of $6.6 billion related to opioid litigation, resulting in a net loss of $3.4 billion for the fiscal year.
3Pharmaceutical Distribution Services segment revenue grew 5.6%, driven by specialty product sales and key customer relationships.
4Other segments (MWI Animal Health, Global Commercialization Services) also showed revenue growth of 9.6%.
5Distribution, selling, and administrative expenses increased by 3.9%, largely due to supporting revenue growth and business transformation efforts.
6The company continued its practice of increasing quarterly dividends, with a 5% increase announced in November 2020.
7Cencora maintained effective internal controls over financial reporting as of September 30, 2020.

Cencora, Inc. Annual Report, Year Ended Sep 30, 2020

Summary

Financial Highlights

Key Highlights

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