Summary
Cencora, Inc. (formerly AmerisourceBergen) reported strong revenue growth of 12.7% for the fiscal year ended September 30, 2021, driven by its core Pharmaceutical Distribution Services segment and the significant acquisition of Alliance Healthcare in June 2021. This acquisition notably expanded the company's international presence and service offerings. Despite revenue growth, the company faced challenges, particularly from ongoing opioid litigation, for which a significant accrual of $6.6 billion was made in the prior fiscal year, with an additional $147.7 million in the current year. The company's strategy focuses on optimizing and growing its pharmaceutical distribution and global commercialization services, alongside its animal health business. While the acquisition of Alliance Healthcare positively impacted revenue and gross profit, it also lowered the gross profit margin for the 'Other' segment due to the acquired entity's lower margin profile. Management anticipates continued revenue growth in the high-single to low-double digits for fiscal year 2022, though this is subject to various industry and economic factors.
Financial Highlights
56 data points| Revenue | $213.99B |
| Cost of Revenue | $207.05B |
| Gross Profit | $6.94B |
| SG&A Expenses | $3.59B |
| Operating Income | $2.35B |
| Net Income | $1.54B |
| EPS (Basic) | $7.48 |
| EPS (Diluted) | $7.39 |
| Shares Outstanding (Basic) | 205.92M |
| Shares Outstanding (Diluted) | 208.47M |
Key Highlights
- 1Revenue increased by 12.7% to $213.99 billion, primarily driven by the acquisition of Alliance Healthcare and growth in the Pharmaceutical Distribution Services segment.
- 2Gross profit increased by 33.7% to $6.94 billion, benefiting from increased sales of specialty products, a LIFO credit, and gains from antitrust litigation settlements.
- 3Operating income saw a significant increase of 145.8% to $2.35 billion, largely due to a substantial decrease in operating expenses, mainly from lower legal accruals related to opioid litigation.
- 4The acquisition of Alliance Healthcare for $6.93 billion in June 2021 was a major event, expanding the company's global reach and services.
- 5The company continues to manage its substantial opioid litigation liability, recording an additional $147.7 million accrual, bringing the total to $6.7 billion.
- 6Debt levels increased significantly due to financing the Alliance Healthcare acquisition, with total debt rising to $6.68 billion.
- 7The company demonstrated a commitment to shareholders through consistent dividend increases and ongoing share repurchase programs.