Summary
McKesson Corporation's 2014 10-K filing highlights a year of significant growth and strategic expansion, largely driven by the acquisition of Celesio AG. The company reported a substantial increase in revenues, reaching $137.6 billion, a 13% rise from the previous year, primarily fueled by its Distribution Solutions segment. This segment, which constitutes the vast majority of McKesson's revenue, saw growth from increased drug utilization, price increases, and the strategic integration of acquired businesses. The company also demonstrated a focus on operational efficiency and technology development within its two core segments: Distribution Solutions and Technology Solutions. While the Distribution Solutions segment continued to dominate revenue, the Technology Solutions segment also showed growth, driven by acquisitions and increased claims processing volume. McKesson continues to navigate a complex and evolving healthcare landscape, facing competition and regulatory scrutiny, but the acquisition of Celesio positions it for expanded global reach and a strengthened market position.
Financial Highlights
57 data points| Revenue | $137.39B |
| Cost of Revenue | $129.04B |
| Gross Profit | $8.35B |
| R&D Expenses | $457.00M |
| SG&A Expenses | $5.39B |
| Operating Expenses | $5.91B |
| Operating Income | $2.44B |
| Net Income | $1.26B |
| EPS (Basic) | $5.51 |
| EPS (Diluted) | $5.41 |
| Shares Outstanding (Basic) | 229.00M |
| Shares Outstanding (Diluted) | 233.00M |
Key Highlights
- 1Revenues increased by 13% to $137.6 billion, primarily driven by the Distribution Solutions segment.
- 2Completed the acquisition of Celesio AG for $4.5 billion, significantly expanding international operations.
- 3Distribution Solutions segment revenue grew by 13%, reaching $134.4 billion, with North America pharmaceutical distribution showing a 7% increase.
- 4Technology Solutions segment revenue increased by 5% to $3.2 billion, driven by acquisitions and higher claims processing volume.
- 5Operating expenses increased significantly due to acquisitions and integration costs.
- 6Net income attributable to McKesson Corporation decreased by 6% to $1.3 billion, impacted by increased expenses and discrete tax items.
- 7The company continued its share repurchase program, although activity decreased compared to prior years.