With an unmatched global platform at the corner of the retail and health care industries, Walgreens (NYSE: WAG) (Nasdaq: WAG) outlined its strategic growth drivers and long-term goals at its 2013 Analyst Meeting today in London.
Summarizing Walgreens key growth drivers to position the company for long-term growth and shareholder value creation, President and CEO Greg Wasson said, “We are focused on creating a complete Well Experience for our customers across all of our touch points; transforming the role community pharmacy plays in health care; and establishing an unprecedented and efficient global platform through our strategic partnership with Alliance Boots. As our two iconic brands come together, we will have a platform that will be very difficult, if not impossible, to replicate.”
Wasson outlined Walgreens fiscal year 2016 financial goals assuming the exercise of the company’s option to proceed to a full combination with Alliance Boots. Together, the companies aim to have sales of $130 billion or greater; adjusted operating income between $9 billion and $9.5 billion, or $8.5 billion to $9 billion on a GAAP basis; $1 billion in combined synergies; and operating cash flow of $8 billion or more.*
“This combination accelerates our core strategies, creates an unmatched global supply chain and provides a platform for global expansion beyond the U.S. and Europe into new markets around the world,” said Wasson.
During the meeting, executives with Alliance Boots provided analysts with insights into their financial performance and the businesses they operate including Boots, its pharmacy-led health and beauty retailing business, and Alliance Healthcare, its pharmaceutical wholesaling and distribution business.
Stefano Pessina, Executive Chairman of Alliance Boots, commented, “The Alliance Boots financial track record, growth strategy and unique portfolio of businesses across many countries position us well to take full advantage of opportunities in the changing health care markets. We believe our Group represents a solid investment for Walgreens, and that together we will create a successful, sustainable and profitable global player. I have full confidence in this, both as the leader of Alliance Boots and a shareholder in Walgreens.”