Summary
McKesson Corporation's (MCK) 10-K filing for the fiscal year ended March 31, 2019, reveals a company navigating a dynamic healthcare landscape. The report highlights the company's core business in pharmaceutical and medical-surgical distribution, alongside its specialty care and technology solutions. While revenues saw an increase, driven by market growth and acquisitions, significant goodwill and asset impairments, particularly in the European segment, impacted profitability. The company also detailed ongoing restructuring initiatives aimed at improving efficiency and cost structures. Investors should note the company's substantial revenue generation but also the substantial goodwill impairments and restructuring charges. Key operational segments include U.S. Pharmaceutical and Specialty Solutions, European Pharmaceutical Solutions, and Medical-Surgical Solutions. The company continues to manage risks associated with regulatory changes, pricing pressures, and supply chain complexities, while also actively engaging in share repurchases and dividend payments.
Financial Highlights
57 data points| Revenue | $214.32B |
| Cost of Revenue | $202.56B |
| Gross Profit | $11.75B |
| R&D Expenses | $71.00M |
| SG&A Expenses | $8.44B |
| Operating Expenses | $10.87B |
| Operating Income | $886.00M |
| Interest Expense | $264.00M |
| Net Income | $34.00M |
| EPS (Basic) | $0.17 |
| EPS (Diluted) | $0.17 |
| Shares Outstanding (Basic) | 196.30M |
| Shares Outstanding (Diluted) | 197.30M |
Key Highlights
- 1Revenues increased by 2.9% to $214,319 million, driven by market growth and acquisitions.
- 2Significant goodwill and long-lived asset impairments totaling over $2 billion impacted the European Pharmaceutical Solutions segment.
- 3The company is undertaking multiple restructuring initiatives to optimize operating models and cost structures, with significant charges recorded.
- 4McKesson reported a net income attributable to McKesson Corporation of $34 million, a substantial decrease from the prior year, largely due to impairments and restructuring charges.
- 5The U.S. Pharmaceutical and Specialty Solutions segment remains the largest revenue generator.
- 6The company repurchased $1.4 billion of its common stock and paid $292 million in dividends during the fiscal year.
- 7McKesson highlighted its significant customer concentration, with the top ten customers accounting for approximately 49.9% of total revenues, including CVS Health at 19.4%.