Summary
Cencora, Inc. (formerly AmerisourceBergen Corporation) reported a strong financial performance for the nine months ended June 30, 2016, with significant revenue growth driven by its Pharmaceutical Distribution segment and contributions from recent acquisitions. Revenue increased by 8.8% year-over-year, reaching $109.3 billion, with notable growth in both the core distribution business and the 'Other' segment, which includes animal health and consulting services. The company demonstrated improved profitability, with gross profit increasing by 23.2% year-over-year, bolstered by a reduction in LIFO expense and substantial gains from antitrust litigation settlements. Despite a rise in distribution, selling, and administrative expenses, largely due to acquisitions, operating income saw a healthy increase, particularly in the 'Other' segment. A significant factor impacting profitability was the favorable tax adjustment related to warrants, which converted a substantial prior-year loss from operations into a significant profit for the nine-month period.
Financial Highlights
53 data points| Revenue | $36.88B |
| Cost of Revenue | $35.77B |
| Gross Profit | $1.11B |
| SG&A Expenses | $516.44M |
| Operating Income | $528.63M |
| Net Income | $349.15M |
| EPS (Basic) | $1.62 |
| EPS (Diluted) | $1.55 |
| Shares Outstanding (Basic) | 215.69M |
| Shares Outstanding (Diluted) | 224.80M |
Key Highlights
- 1Revenue for the nine months ended June 30, 2016, increased by 8.8% to $109.3 billion compared to the same period in the prior year.
- 2Gross profit saw a substantial increase of 23.2% year-over-year, driven by reduced LIFO expenses and significant gains from antitrust litigation settlements.
- 3The company completed the acquisition of PharMEDium Healthcare Holdings, Inc. for $2.7 billion in November 2015, which contributed to revenue and expense growth.
- 4Operating income for the 'Other' segment experienced strong growth of 45.7% year-over-year, largely due to the acquisition of MWI Veterinary Supply.
- 5A significant tax benefit adjustment of approximately $456 million was recognized due to a private letter ruling regarding the tax deduction for warrants, significantly impacting the nine-month net income.
- 6The company continued its share repurchase program, with $646.9 million of availability remaining as of June 30, 2016, and increased its quarterly cash dividend by 17% in November 2015.
- 7Total debt increased to $4.4 billion, with borrowings primarily to finance recent acquisitions.