Summary
Cencora, Inc. (COR), formerly AmerisourceBergen, reported strong revenue growth of 13.5% to $59.6 billion for the quarter ended December 30, 2021, compared to the prior year. This growth was primarily driven by the significant contribution from the acquisition of Alliance Healthcare in June 2021, which substantially expanded the company's international presence. While the U.S. Healthcare Solutions segment saw a more modest 2.7% revenue increase, the International Healthcare Solutions segment experienced a remarkable 604.2% surge, largely due to the Alliance Healthcare acquisition. The company also demonstrated robust growth in gross profit, which increased by 41.9% to $2.06 billion, benefiting from both the Alliance Healthcare acquisition and organic growth within its segments. Operating income saw a healthy increase of 17.8% to $644.4 million. Investors should note the significant increase in operating expenses, up 56.5%, largely attributable to the integration of Alliance Healthcare, and a substantial increase in interest expense due to debt financing for the acquisition. The company continues to manage significant litigation related to opioid settlements, with a $6.7 billion accrual in place.
Financial Highlights
56 data points| Revenue | $59.63B |
| Cost of Revenue | $57.57B |
| Gross Profit | $2.06B |
| SG&A Expenses | $1.17B |
| Operating Income | $644.40M |
| Net Income | $449.11M |
| EPS (Basic) | $2.15 |
| EPS (Diluted) | $2.13 |
| Shares Outstanding (Basic) | 208.56M |
| Shares Outstanding (Diluted) | 211.17M |
Key Highlights
- 1Revenue increased by 13.5% to $59.6 billion, primarily driven by the acquisition of Alliance Healthcare.
- 2International Healthcare Solutions revenue grew by an impressive 604.2% due to the Alliance Healthcare acquisition.
- 3Gross profit rose by 41.9% to $2.06 billion, reflecting strong performance across segments and the impact of the acquisition.
- 4Operating income increased by 17.8% to $644.4 million, indicating improved profitability.
- 5Operating expenses increased by 56.5%, largely due to acquisition integration costs.
- 6The company has accrued $6.7 billion for opioid litigation settlements, highlighting a significant ongoing contingent liability.
- 7The company declared a cash dividend of $0.46 per share, a 5% increase from the previous quarter.