What are the primary drivers of Cencora's revenue growth in this quarter?

Cencora's revenue growth in the third quarter of fiscal year 2023 was primarily driven by its U.S. Healthcare Solutions segment. Key contributing factors include increased unit volume growth, particularly in diabetes and weight-loss medications (GLP-1 class) and specialty products sold to physician practices and health systems. This growth was partially offset by a decrease in sales of COVID-19 treatments.

How is Cencora addressing its opioid litigation liabilities?

Cencora has accrued an estimated liability of $5.9 billion as of June 30, 2023, related to the Distributor Settlement Agreement for opioid litigation, which is expected to be paid over the next 18 years. The company is also involved in other opioid-related litigation for which it has reached settlement agreements. While the company has accrued its estimated liability, it acknowledges that the ultimate loss may differ materially from the amount accrued.

What is the financial impact of the recent acquisitions, PharmaLex and OneOncology?

The acquisition of PharmaLex in January 2023 contributed incremental revenue and gross profit to the International Healthcare Solutions segment. The investment in the OneOncology joint venture, totaling $718.4 million, is accounted for as an equity method investment and is expected to contribute to future growth. The financial statements reflect the preliminary allocation of the PharmaLex purchase price to assets and liabilities, including significant goodwill.

How did Cencora's profitability change year-over-year?

Cencora demonstrated improved profitability in the third quarter of fiscal year 2023. Net income attributable to AmerisourceBergen Corporation increased by 18.1% to $479.6 million, and diluted earnings per share rose to $2.35 from $1.92 in the prior year's comparable quarter. This improvement was supported by revenue growth, increased gross profit, and the impact of a litigation and opioid-related credit.

COR 10-Q Quarterly Report Q3 FY2023 — Revenue, Net Income, EPS

Summary

Cencora, Inc. (formerly AmerisourceBergen Corporation) reported solid revenue growth in its fiscal third quarter ended June 30, 2023, driven primarily by its U.S. Healthcare Solutions segment. Total revenue increased by 11.5% year-over-year, reaching $66.9 billion. This growth was propelled by increased unit volumes, particularly in diabetes and weight-loss medications (GLP-1 class) and specialty products, though partially offset by decreased sales of COVID-19 treatments. Net income attributable to AmerisourceBergen Corporation saw a significant increase, reaching $479.6 million for the quarter, a 18.1% rise from the prior year. Diluted earnings per share also improved to $2.35 from $1.92 in the same period last year. The company's strategic acquisitions, including PharmaLex and the investment in OneOncology, are expected to contribute to future growth. Despite ongoing legal matters, notably the opioid litigation settlement, Cencora's financial performance demonstrates resilience and operational strength.

Financial Highlights

55 data points

Beta

Revenue

$66.95B

0.0% Gross Margin

Net Income

$479.58M

0.0% Net Margin

EPS (Diluted)

$2.35

Total Assets

$61.18B

Cash & Equivalents

$1.39B

Free Cash Flow

$640.65M

Financial Statements

Beta

Revenue	$66.95B
Cost of Revenue	$64.68B
Gross Profit	$2.26B
SG&A Expenses	$1.30B
Operating Income	$670.13M
Net Income	$479.58M
EPS (Basic)	$2.37
EPS (Diluted)	$2.35
Shares Outstanding (Basic)	202.35M
Shares Outstanding (Diluted)	204.38M

Key Highlights

1Revenue increased by 11.5% to $66.9 billion in Q3 2023, driven by strong performance in the U.S. Healthcare Solutions segment.
2Net income attributable to shareholders rose by 18.1% to $479.6 million, with diluted EPS improving to $2.35.
3Gross profit increased by 12.4% to $2.26 billion, benefiting from increased sales and antitrust litigation settlement gains.
4Significant strategic investments were made, including the acquisition of PharmaLex for $1.47 billion and a $718.4 million investment in the OneOncology joint venture.
5The company continues to manage its significant opioid litigation liability, with an accrued amount of $5.9 billion expected to be paid over 18 years.
6Operating expenses increased by 4.3%, influenced by higher distribution, selling, and administrative costs, partially offset by a litigation and opioid-related credit.
7Cencora announced its intention to change its name to reflect its broader vision, with the new name to be effective August 30, 2023.

Cencora, Inc. Quarterly Report for Q3 Ended Jun 30, 2023

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions