Cencora, Inc. ( (COR) ) has released its Q4 earnings. Here is a breakdown of the information Cencora, Inc. presented to its investors.
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Cencora, Inc., a leading global pharmaceutical solutions organization, reported a strong financial performance for the fiscal year 2024, marked by significant revenue growth. The company’s revenue for the fourth quarter increased by 14.7% year-over-year to $79.1 billion, and for the full fiscal year, revenue rose by 12.1% to $294 billion. The adjusted diluted earnings per share (EPS) for the fourth quarter was $3.34, marking a 16.8% increase, while the adjusted EPS for the fiscal year was $13.76, a 14.8% rise from the previous year.
The company’s U.S. Healthcare Solutions segment saw a notable increase in revenue by 15.7% during the fourth quarter, primarily driven by market growth and increased sales in the GLP-1 class and specialty products. Despite a goodwill impairment charge related to PharmaLex impacting GAAP results, Cencora’s adjusted operating income increased by 10.9% for the year. The company also announced a strategic acquisition of Retina Consultants of America, enhancing its capabilities in specialty healthcare.
Cencora’s gross profit for the quarter rose by 10.6% to $2.5 billion, although operating expenses increased significantly due to various charges including litigation and opioid-related expenses. The effective tax rate dramatically rose to 94% for the quarter due to non-deductible impairment charges. However, adjusted results painted a more positive picture, with a 6.3% increase in adjusted operating income for the fourth quarter.
Looking ahead, Cencora is optimistic about continued growth, with expectations for revenue growth between 7% to 9% for fiscal year 2025. The company aims to lead with a customer-centric approach, focusing on long-term value creation and maintaining its role as a differentiated healthcare solutions provider.
Cencora’s management is committed to sustaining its growth trajectory and enhancing shareholder value, with plans for further strategic initiatives and operational improvements in the upcoming year.
