Rite Aid Corporation
) announced its Q1 earnings on Thursday, June 16th. The
company’s revenue grew by 23.1% year-on-year (y-o-y) to $8.2
billion for the quarter. The rise in revenue was primarily driven
by the strong performance of the Pharmacy Services division,
which contributed $1.6 billion to the revenue figures of the
quarter. The company also incurred a significant increase in costs
of good sold (31.4% increase y-o-y), which affected its margins
significantly. The company posted a net loss of $4.58 million,
which was a decrease of 124% from the previous year’s first
The company reported an increase of 23% y-o-y in revenues for
the quarter ending May 28th. This was primarily attributed to a
minor increase in front end sales and to the strong performance of
the Pharmacy Services segment, which was acquired last year.
However, the large increase in costs of sales offset the
increase in revenues, resulting in a fall in EBITDA and
earnings. Rite Aid’s net cash also declined significantly
to $160 million, compared to $368 million for the
previous year’s first quarter.
Outlook for the Year
Rite Aid has not given any guidance figures for the
upcoming quarters and for the full financial year, owing to the
Federal Trade Commission’s pending approval of its merger with
Walgreens Boots Alliance. The company expects the merger to be
completed by the second half of this year.
Have more questions about Rite Aid (
)? See the links below:
- What is Rite Aid’s Current Revenue & EBITDA
- What’s Rite Aid’s Fundamental Value Based on Expected 2016
- What contributed to Rite Aid’s topline growth in 2015?
- By How Much Can Rite Aid’s Revenue & EBITDA Grow In The
Next 5 Years: Trefis Estimate
- What To Expect From Rite Aid’s Q4 and Fiscal 2016
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2) Figures mentioned are approximate values to help our readers
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precise figures, please refer to
our detailed analysis for Rite Aid
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This article, Rite Aid Earnings Review: Company Reports Loss Despite Revenue Growth Nasdaq, first appeared on Nhat Net.