AmerisourceBergen reports Q3 results
VALLEY FORGE, Pa. — AmerisourceBergen on Tuesday announced its Q3 results for fiscal year 2016, posting a 7.7% increase in revenue, which totaled $36.9 billion. Diluted earnings per share hit $1.56 based on U.S. generally accepted accounting principles (GAAP), an increase of 75.3%.
“I am pleased with the solid performance we delivered in the June quarter,” AmerisourceBergen chairman, president and CEO Steve Collis said. “Our most recent acquisitions, MWI Veterinary Supply and PharMEDium, have made strong contributions, and our specialty group delivered excellent performance. We renewed our relationship with our largest health systems customer for an additional five years, and have made progress on our efforts to address the headwinds we face in AmerisourceBergen Drug Corp. (ABDC)”
The company’s pharmaceutical distribution GAAP revenue grew 8% in Q3, and gross profit grew to $1.1 billion, or about a 24.3% increase over the same period last year. The increase in profit was attributed to increased gain from antitrust litigation settlements, decrease in LIFO expenses and the acquisition of PharMEDium, which it acquired in November 2015.
AmerisourceBergen also saw its GAAP operating expenses increase in Q3, growing 4% over the same period last year to $581.2 million. GAAP Distribution, selling and administrative expenses went up $17.3 million, which the company attributed to the acquisition of PharMEDium and the additional costs needed to support revenue growth. Adjusted operating expenses were $574 million.
The company’s pharmaceutical distribution segment — which includes ABDC and AmerisourceBergen Specialty Group — revenue was $35.4 billion, up 8% over the previous year, and ABDC revenue was up 6.5%, due to organic sales growth, including sales to Walgreens Boots Alliance. AmerisourceBergen Specialty Group’s revenue was up 20.2% in Q3, driven by strong performance in its third-party logistics business and its oncology business and sales growth of blood products. The whole segment’s operating income was up 8.7% to $410.7 million for the quarter.
Looking forward into 2016, the company expects 8% growth in revenue, a 5%-6% increase in operating income, an effective tax rate of about 33% and a 2016 fiscal year adjusted earnings per share of $5.52 to %5.57. The company expects a 4%-6% growth in adjusted EPS in 2017, as well as revenue gfrowth slightly better than the overall market and a slight decrease in effective tax rate.