Cencora, Inc. Annual Report, Year Ended Sep 30, 2024

Cencora, Inc. (COR) reported a strong fiscal year 2024, with revenue increasing by 12.1% to $293.96 billion, driven primarily by growth in its U.S. Healthcare Solutions segment. This growth was fueled by increased unit volumes, notably in GLP-1 class drugs for diabetes and weight loss, specialty products, and COVID-19 therapies and vaccines. The company also experienced robust gross profit growth of 10.6%, benefiting from increased sales and a favorable shift from LIFO expense to a LIFO credit. However, operating expenses saw a significant increase of 16.9%, largely due to a $418 million goodwill impairment related to PharmaLex and increased litigation and opioid-related expenses. Despite these headwinds, total segment operating income grew by 10.9%, showcasing the underlying strength of its core businesses. A major development during the year was the agreement to acquire Retina Consultants of America (RCA) for approximately $4.6 billion, signaling a strategic move into new growth areas, funded by a combination of cash and debt. Cencora continues to prioritize shareholder returns, with a consistent increase in quarterly dividends and ongoing share repurchase programs. The company's financial health remains solid, supported by strong operating cash flows and access to credit facilities, although it faces ongoing industry challenges such as pricing pressures and regulatory complexities.