Summary
McKesson Corporation reported increased revenues for the second quarter and first half of fiscal year 2022, driven by market growth in its U.S. Pharmaceutical segment and contributions from COVID-19 related programs. Gross profit also saw a significant increase, benefiting from vaccine and ancillary supply kit distribution, as well as a recovery from pandemic-related impacts. However, the company recorded substantial charges related to its European business divestiture and ongoing opioid litigation, which impacted net income. The company continued its share repurchase program and increased its quarterly dividend.
Financial Highlights
52 data pointsBeta
Financial Statements
Beta
| Revenue | $66.58B |
| Cost of Revenue | $63.22B |
| Gross Profit | $3.35B |
| SG&A Expenses | $2.67B |
| Operating Expenses | $2.81B |
| Operating Income | $539.00M |
| Interest Expense | $45.00M |
| Net Income | $267.00M |
| EPS (Basic) | $1.73 |
| EPS (Diluted) | $1.71 |
| Shares Outstanding (Basic) | 154.10M |
| Shares Outstanding (Diluted) | 155.80M |
Key Highlights
- 1Revenues increased by 9% for the three months ended September 30, 2021, and by 11% for the six months ended September 30, 2021, compared to the prior year periods, primarily driven by market growth in the U.S. Pharmaceutical segment.
- 2Gross profit increased by 12% for both periods, benefiting from COVID-19 vaccine and ancillary supply kit distribution, and recovery from pandemic impacts.
- 3Significant charges were recorded for the remeasurement of the EU disposal group to fair value less costs to sell ($491 million) and for opioid-related litigation ($112 million and $186 million for the respective periods).
- 4A loss on debt extinguishment of $191 million was recorded due to a tender offer for existing debt.
- 5Net income attributable to McKesson Corporation decreased by 54% for the three months and 26% for the six months, largely due to the aforementioned charges and a $191 million loss on debt extinguishment.
- 6The company repurchased $1.3 billion of common stock under an ASR program and open market transactions during the first six months of the fiscal year and increased its quarterly dividend to $0.47 per share.
- 7McKesson announced an agreement to sell its UK retail and distribution businesses for approximately $438 million, with an estimated charge of $700 million to $900 million expected.