(Reuters) -Walgreens Boots Alliance on Thursday reported better-than-expected profit for the first quarter on strength in its pharmacy operations and cut its quarterly dividend in an attempt to save cash.
Walgreens said it will cut dividend payment by 48% to 25 cents per share.
Walgreens has been shifting its focus to integrated health services and closing unprofitable stores as well as cutting jobs as it struggles with competition from rivals, sharply lower sales from COVID vaccines and testing, and decreased discretionary spending by inflation-weary consumers.
The company appointed healthcare industry veteran Tim Wentworth in October as its CEO, as it looks to emerge out of the troubles surrounding it and streamline its operations.
On an adjusted basis, the company reported earnings of 66 cents per share for the quarter, compared with the average analyst estimate of 61 cents per share, according to LSEG data.
Shares of the Deerfield, Illinois-based company rose 2% in premarket trading.
(Reporting by Bhanvi Satija and Mariam Sunny in Bengaluru; Editing by Shinjini Ganguli)
Comments