MCKESSON CORPORATION McKESSON CORPORATION REPORTS FISCAL 2024 FOURTH QUARTER
AND FULL YEAR RESULTS
Fourth Quarter Highlights:
- Consolidated revenues of $76.4 billion increased by 11%.
- Earnings per diluted share from continuing operations of $6.02 increased $0.31.
- Adjusted Earnings per Diluted Share of $6.18 decreased by 14%.
Full Year Highlights:
- Consolidated revenues of $309.0 billion increased by 12%.
- Earnings per diluted share from continuing operations of $22.39 decreased $2.66.
- Adjusted Earnings per Diluted Share of $27.44 increased by 6%.
- Cash flow from operations of $4.3 billion and Free Cash Flow of $3.6 billion.
Fiscal 2025 Outlook:
- Fiscal 2025 Adjusted Earnings per Diluted Share guidance range of $31.25 to $32.05 indicates 14% to 17% forecasted growth compared to the prior year.
- The Company does not forecast GAAP earnings per diluted share from continuing operations1.
IRVING, Texas, May 7, 2024 - McKesson Corporation (NYSE:MCK) today announced results for the fourth quarter and fiscal year ended March 31, 2024.
Fiscal 2024 Fourth Quarter and Full Year Result Summary
Fourth Quarter | Full Year | ||||||||||
($ in millions, except per share amounts) | FY24 | FY23 | Change | FY24 | FY23 | Change | |||||
Revenues | $ 76,355 | $ 68,910 | 11 % | $ 308,951 | $ 276,711 | 12 % | |||||
Income from Continuing Operations 2 | 791 | 787 | 1 | 3,002 | 3,563 | (16) | |||||
Adjusted Earnings 2,3 | 813 | 992 | (18) | 3,679 | 3,689 | - | |||||
Earnings per Diluted Share 2 | 6.02 | 5.71 | 5 | 22.39 | 25.05 | (11) | |||||
Adjusted Earnings per Diluted Share 2,3 | 6.18 | 7.19 | (14) | 27.44 | 25.94 | 6 |
"McKesson reported fourth quarter results, marking the close to a strong fiscal 2024, underpinned by continued momentum across the enterprise," said Brian Tyler, chief executive officer. "The results underscore the execution against our company priorities, differentiated capabilities within the oncology and biopharma services platforms, and the sustained strength of our core distribution businesses. We continue to leverage the breadth and depth of our assets, delivering meaningful outcomes for our customers, partners, patients, and communities. I want to thank all McKesson employees for their efforts, dedication, and contributions."
"Looking ahead to fiscal 2025, we are well-positioned to further expand on the extensive range of our assets and capabilities, execute against our strategic initiatives, foster sustainable growth, and create long- term value for all stakeholders," said Mr. Tyler. "We are excited about the opportunities ahead as we advance health outcomes for all."
Fourth quarter revenues were $76.4 billion, an increase of 11% from a year ago. Revenue increases were primarily driven by growth in the U.S. Pharmaceutical segment, resulting from increased prescription volumes, including higher volumes from specialty products, retail national account customers, and GLP-1 medications.
- See below under "Fiscal 2025 Outlook" for full explanation
- Reflects continuing operations attributable to McKesson, net of tax
- Adjusted results in this earnings release are non-GAAP financial measures; refer to the accompanying definitions, reconciliation schedules, and Schedule 2
Fourth quarter earnings per diluted share from continuing operations was $6.02 compared to $5.71 a year ago, an increase of $0.31. Full year earnings per diluted share from continuing operations was $22.39 compared to $25.05 a year ago, a decrease of $2.66.
Fourth quarter Adjusted Earnings per Diluted Share was $6.18 compared to $7.19 a year ago, a decrease of 14%, driven by a higher tax rate, partially offset by a lower share count and growth in the U.S. Pharmaceutical segment. Full year Adjusted Earnings per Diluted Share was $27.44 compared to $25.94 a year ago, an increase of 6%, led by growth in the U.S. Pharmaceutical and Prescription Technology Solutions segments and a lower share count, partially offset by higher corporate expenses.
For the full year, McKesson returned $3.3 billion of cash to shareholders, which included $3.0 billion of common stock repurchases and $314 million of dividend payments. During the fiscal year, McKesson generated cash from operations of $4.3 billion, and invested $687 million in capital expenditures, resulting in Free Cash Flow of $3.6 billion.
Business Highlights
- McKesson continued to advance and expand its oncology and biopharma services platforms.
- In the past year, McKesson's CoverMyMeds business helped patients save more than $8.8 billion on brand and specialty medications, helped to prevent 10.7 million prescriptions from being abandoned due to affordability challenges, and helped patients access their medicine more than 94 million times.
- The Sarah Cannon Research Institute joint venture announced a collaboration with AstraZeneca aimed at advancing innovative technology and operational synergies to enhance the delivery of oncology clinical trials.
- McKesson launched a pilot initiative aimed at advancing health equity in underserved communities. Avondale, Ohio was selected as the first activation site to support access to essential pharmacy services and help tackle healthcare disparities.
- McKesson received three awards and recognitions.
- Named by Fortune as one of America's Most Innovative Companies.
- Recognized by Newsweek as one of America's Greatest Workplaces for Women in 2024.
- Recognized by DiversityComm Media as a 2024 Best of the Best Top Women Employer.
U.S. Pharmaceutical Segment
Fourth Quarter
- Revenues were $68.8 billion, an increase of 12%, driven by increased prescription volumes, including higher volumes from specialty products, retail national account customers, and GLP-1 medications.
- Segment Operating Profit was $1.1 billion. Adjusted Segment Operating Profit was $901 million, an increase of 5%, driven by growth in the distribution of specialty products to providers and health systems and increased contributions from our generics program.
Full Year
- Revenues were $278.7 billion, an increase of 16%, driven by increased prescription volumes, including higher volumes from specialty products, retail national account customers, and GLP-1 medications.
- Segment Operating Profit was $2.8 billion. Adjusted Segment Operating Profit was $3.3 billion, an increase of 7%, driven by growth in the distribution of specialty products to providers and health systems and increased contributions from our generics program.
Prescription Technology Solutions Segment
Fourth Quarter
- Revenues were $1.2 billion, flat to the prior year, driven by growth in the technology services business, offset by lower contributions from the third-party logistics business.
- Segment Operating Profit was $188 million. Adjusted Segment Operating Profit was $212 million, a decrease of 3%, driven by higher investments and expenses to support future growth across the biopharma services platform.
Full Year
- Revenues were $4.8 billion, an increase of 9%, driven by increased prescription volumes in the technology services and third-party logistics businesses.
- Segment Operating Profit was $835 million. Adjusted Segment Operating Profit was $837 million, an increase of 23%, driven by higher demand for access solutions, principally prior authorization services led by increased prescription volumes.
Medical-Surgical Solutions Segment
Fourth Quarter
- Revenues were $2.8 billion, an increase of 6%, driven by growth in the primary and extended care businesses, including higher volumes of illness season testing, partially offset by lower contribution from kitting, storage, and distribution of ancillary supplies for the U.S. government's COVID-19 vaccine program.
- Segment Operating Profit was $213 million. Adjusted Segment Operating Profit was $248 million, flat to the prior year, driven by lower contribution from kitting, storage, and distribution of ancillary supplies for the U.S. government's COVID-19 vaccine program, offset by growth in the primary and extended care businesses, including higher volumes of illness season testing.
Full Year
- Revenues were $11.3 billion, an increase of 2%, driven by growth in the primary and extended care businesses, partially offset by lower contribution from kitting, storage, and distribution of ancillary supplies for the U.S. government's COVID-19 vaccine program.
- Segment Operating Profit was $952 million. Adjusted Segment Operating Profit was $1.0 billion, a decrease of 12%, driven by lower contribution from kitting, storage, and distribution of ancillary supplies for the U.S. government's COVID-19 vaccine program, partially offset by growth in the primary and extended care businesses.
International Segment
Fourth Quarter
- Revenues were $3.5 billion, an increase of 6%, driven by higher pharmaceutical distribution volumes in the Canadian business.
- Segment Operating Profit was $70 million. Adjusted Segment Operating Profit was $94 million, an increase of 18%, driven by higher pharmaceutical distribution volumes in the Canadian business.
Full Year
- Revenues were $14.1 billion, a decrease of 31%, driven by Fiscal 2023 divestitures within McKesson's European business.
- Segment Operating Profit was $319 million. Adjusted Segment Operating Profit was $378 million, a decrease of 24%, driven by Fiscal 2023 divestitures within McKesson's European business.
Fiscal 2025 Outlook
McKesson does not provide forward-looking guidance on a GAAP basis as the Company is unable to provide a quantitative reconciliation of forward-lookingNon-GAAP measures to the most directly comparable forward-looking GAAP measure, without unreasonable effort. McKesson cannot reasonably forecast LIFO inventory-related adjustments, certain litigation loss and gain contingencies, restructuring, impairment and related charges, and other adjustments, which are difficult to predict and estimate. These items are generally uncertain and depend on various factors, many of which are beyond the company's control, and as such, any associated estimate and its impact on GAAP performance could vary materially.
McKesson continues its focused execution on company priorities, leveraging its assets and capabilities to drive sustainable growth. McKesson anticipates Fiscal 2025 Adjusted Earnings per Diluted Share of $31.25 to $32.05 reflecting continued operating momentum, a strong financial position, and a balanced approach to capital deployment.
Additional modeling considerations will be provided in the earnings call presentation.
Conference Call Details
McKesson has scheduled a conference call for today, Tuesday, May 7th at 4:30 PM ET to discuss the company's financial results. The audio webcast of the conference call will be available live and archived on McKesson's Investor Relations website at investor.mckesson.com.
Upcoming Investor Event
McKesson management will be participating in the following investor conference:
- BofA Securities 2024 Healthcare Conference, May 16, 2024
The audio webcast, and a complete listing of upcoming events for the investment community, including details and updates, will be available on McKesson's Investor Relations website.
Non-GAAP Financial Measures
GAAP refers to the U.S. generally accepted accounting principles. This press release includes GAAP financial measures as well as Non-GAAP financial measures, including Adjusted Gross Profit, Adjusted Operating Expenses, Adjusted Other Income, Adjusted Interest Expense, Adjusted Income Tax Expense, Adjusted Earnings, Adjusted Earnings per Diluted Share, Adjusted Segment Operating Profit, Adjusted Segment Operating Profit Margin, Adjusted Corporate Expenses, Adjusted Operating Profit, FX-Adjusted results and Free Cash Flow which are financial measures not calculated in accordance with GAAP. Refer to the "Supplemental Non-GAAP Financial Information" section of the accompanying financial statement tables for the definitions and usefulness of the Company's Non-GAAP financial measures and the attached schedules for reconciliations of the differences between the Non-GAAP financial measures and their most directly comparable GAAP financial measures.
Cautionary Statements
This earnings release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by their use of terminology such as "believes," "expects," "anticipates," "may," "will," "should," "seeks," "approximately," "intends," "projects," "plans," "estimates," "targets," or the negative of these words or other comparable terminology. The discussion of financial outlook, guidance, trends, strategy, plans, assumptions, expectations, commitments, intentions, and the potential impact of new relationships or initiatives may also include forward-looking statements. Readers should not place undue reliance on forward-looking statements, such as financial performance forecasts, which speak only as of the date they are first made. Except to the extent required by law, we undertake no obligation to update or revise our forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, or implied. Although it is not possible to predict or identify all such
risks and uncertainties, we encourage investors to read the risk factors described in our publicly available filings with the Securities and Exchange Commission and news releases.
These risk factors include, but are not limited to: we experience costly and disruptive legal disputes and settlements, including regarding our role in distributing controlled substances such as opioids; we might experience losses not covered by insurance or indemnification; we are subject to frequently changing, extensive, complex, and challenging healthcare and other laws; we from time to time record significant charges from impairment to goodwill, intangibles, and other long-lived assets; we experience cybersecurity incidents that might significantly compromise our technology systems or might result in material data breaches; we may be unsuccessful in achieving our strategic growth objectives; we are impacted by customer purchase reductions, contract non-renewals, payment defaults, and bankruptcies; our contracts with government entities involve future funding and compliance risks; we might be harmed by changes in our relationships or contracts with suppliers; our use of third-party data is subject to limitations that could impede the growth of our data services business; we might be adversely impacted by healthcare reform such as changes in pricing and reimbursement models; we might be adversely impacted by competition and industry consolidation; we are adversely impacted by changes or disruptions in product supply and have had difficulties in sourcing or selling products due to a variety of causes; we might be adversely impacted as a result of our distribution of generic pharmaceuticals; we might be adversely impacted by changes in the economic environments in which we operate; changes affecting capital and credit markets might impede access to credit, increase borrowing costs, and disrupt banking services for us and our customers and suppliers and might impair the financial soundness of our customers and suppliers; we might be adversely impacted by changes in tax legislation or challenges to our tax positions; we might be adversely impacted by events outside of our control, such as widespread public health issues, natural disasters, political events and other catastrophic events; we may be adversely affected by global climate change or by legal, regulatory, or market responses to such change; and governance issues and regulations, including those related to social issues, climate change, and sustainability, and stakeholder response thereto may have an adverse effect on our business, financial condition, and results of operations and damage our reputation.
About McKesson Corporation
McKesson Corporation is a diversified healthcare services leader dedicated to advancing health
outcomes for patients everywhere. Our teams partner with biopharma companies, care providers, pharmacies, manufacturers, governments, and others to deliver insights, products and services to help make quality care more accessible and affordable. Learn more about how McKesson is impacting virtually every aspect of healthcare at McKesson.comand read Our Stories.
Contacts:
Rachel Rodriguez, 469-260-0556 (Investors)
Rachel.Rodriguez@McKesson.com
Media Relations
MediaRelations@McKesson.com
Schedule 1
McKESSON CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (GAAP)
(unaudited)
(in millions, except per share amounts)
Three Months Ended | Year Ended March 31, | ||||||||||||||
March 31, | |||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||
Revenues | $ | 76,355 | $ | 68,910 | 11 % | $ | 308,951 | $ | 276,711 | 12 % | |||||
Cost of sales | (72,770) | (65,844) | 11 | (296,123) | (264,353) | 12 | |||||||||
Gross profit | 3,585 | 3,066 | 17 | 12,828 | 12,358 | 4 | |||||||||
Selling, distribution, general, and administrative | (2,189) | (1,964) | 11 | (8,657) | (7,776) | 11 | |||||||||
expenses | |||||||||||||||
Claims and litigation charges, net | (149) | 3 | - | (147) | 8 | - | |||||||||
Restructuring, impairment, and related charges, net | (31) | (125) | (75) | (115) | (209) | (45) | |||||||||
Total operating expenses | (2,369) | (2,086) | 14 | (8,919) | (7,977) | 12 | |||||||||
Operating income | 1,216 | 980 | 24 | 3,909 | 4,381 | (11) | |||||||||
Other income, net | 34 | 31 | 10 | 132 | 497 | (73) | |||||||||
Interest expense | (80) | (79) | 1 | (252) | (248) | 2 | |||||||||
Income from continuing operations before income | |||||||||||||||
taxes | 1,170 | 932 | 26 | 3,789 | 4,630 | (18) | |||||||||
Income tax expense | (340) | (106) | 221 | (629) | (905) | (30) | |||||||||
Income from continuing operations | 830 | 826 | - | 3,160 | 3,725 | (15) | |||||||||
Loss from discontinued operations, net of tax | - | - | - | - | (3) | (100) | |||||||||
Net income | 830 | 826 | - | 3,160 | 3,722 | (15) | |||||||||
Net income attributable to noncontrolling interests | (39) | (39) | - | (158) | (162) | (2) | |||||||||
Net income attributable to McKesson Corporation | $ | 791 | $ | 787 | 1 % | $ | 3,002 | $ | 3,560 | (16)% | |||||
Earnings (loss) per common share attributable to | |||||||||||||||
McKesson Corporation (a) | |||||||||||||||
Diluted | |||||||||||||||
Continuing operations | $ | 6.02 | $ | 5.71 | 5 % | $ | 22.39 | $ | 25.05 | (11)% | |||||
Discontinued operations | - | - | - | - | (0.02) | (100) | |||||||||
Total | $ | 6.02 | $ | 5.71 | 5 % | $ | 22.39 | $ | 25.03 | (11)% | |||||
Basic | |||||||||||||||
Continuing operations | $ | 6.06 | $ | 5.75 | 5 % | $ | 22.54 | $ | 25.25 | (11)% | |||||
Discontinued operations | - | - | - | - | (0.02) | (100) | |||||||||
Total | $ | 6.06 | $ | 5.75 | 5 % | $ | 22.54 | $ | 25.23 | (11)% | |||||
Dividends declared per common share | $ | 0.62 | $ | 0.54 | 15 % | $ | 2.40 | $ | 2.09 | 15 % | |||||
Weighted-average common shares outstanding | |||||||||||||||
Diluted | 131.6 | 138.0 | (5)% | 134.1 | 142.2 | (6)% | |||||||||
Basic | 130.7 | 136.9 | (5) | 133.2 | 141.1 | (6) |
- Certain computations may reflect rounding adjustments.
Any percentage changes displayed above which are not meaningful are displayed as zero percent.
Refer to our applicable filings with the SEC for additional disclosures including our Quarterly Reports on Form 10-Q for fiscal 2024 and 2023 as well as our Annual Report on Form 10-K for fiscal 2024 and 2023.
Schedule 2
McKESSON CORPORATION
RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP)
(unaudited)
(in millions, except per share amounts)
Three Months Ended | Year Ended March 31, | |||||||||||
March 31, | ||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||
Income from continuing operations (GAAP) | $ | 830 | $ | 826 | - % | $ | 3,160 | $ | 3,725 | (15)% | ||
Net income attributable to noncontrolling interests (GAAP) | (39) | (39) | - | (158) | (162) | (2) | ||||||
Income from continuing operations attributable to | 791 | 787 | 1 | 3,002 | 3,563 | (16) | ||||||
McKesson Corporation (GAAP) | ||||||||||||
Pre-tax adjustments: | ||||||||||||
Amortization of acquisition-related intangibles | 63 | 66 | (5) | 249 | 236 | 6 | ||||||
Transaction-related expenses and adjustments (1) (2) (3) | 17 | 35 | (51) | 10 | (123) | 108 | ||||||
LIFO inventory-related adjustments | (246) | 32 | (869) | (157) | 1 | - | ||||||
Gains from antitrust legal settlements | (24) | - | - | (244) | (129) | 89 | ||||||
Restructuring, impairment, and related charges, net (4) | 31 | 125 | (75) | 115 | 209 | (45) | ||||||
Claims and litigation charges, net (5) | 149 | (3) | - | 147 | (8) | - | ||||||
Other adjustments, net (6) (7) | 27 | 1 | - | 762 | (70) | - | ||||||
Income tax effect on pre-tax adjustments | 6 | (48) | 113 | (198) | 13 | - | ||||||
Net income attributable to noncontrolling interests effect on | (1) | (3) | (67) | (7) | (3) | 133 | ||||||
pre-tax adjustments | ||||||||||||
Adjusted Earnings (Non-GAAP) | $ | 813 | $ | 992 | (18)% | $ | 3,679 | $ | 3,689 | - % | ||
Earnings per diluted common share from continuing | ||||||||||||
operations attributable to McKesson Corporation | $ | 6.02 | $ | 5.71 | 5 % | $ | 22.39 | $ | 25.05 | (11)% | ||
(GAAP) (a) | ||||||||||||
After-tax adjustments: | ||||||||||||
Amortization of acquisition-related intangibles | 0.37 | 0.36 | 3 | 1.42 | 1.29 | 10 | ||||||
Transaction-related expenses and adjustments | 0.11 | 0.20 | (45) | 0.15 | (0.52) | 129 | ||||||
LIFO inventory-related adjustments | (1.38) | 0.18 | (867) | (0.86) | 0.01 | - | ||||||
Gains from antitrust legal settlements | (0.13) | - | - | (1.35) | (0.67) | 101 | ||||||
Restructuring, impairment, and related charges, net | 0.19 | 0.69 | (72) | 0.66 | 1.13 | (42) | ||||||
Claims and litigation charges, net | 0.85 | 0.05 | - | 0.82 | 0.02 | - | ||||||
Other adjustments, net | 0.15 | - | - | 4.21 | (0.37) | - | ||||||
Adjusted Earnings per Diluted Share (Non-GAAP)(a) (b) | $ | 6.18 | $ | 7.19 | (14)% | $ | 27.44 | $ | 25.94 | 6 % | ||
Diluted weighted-average common shares outstanding | 131.6 | 138.0 | (5)% | 134.1 | 142.2 | (6)% | ||||||
- Certain computations may reflect rounding adjustments.
- Adjusted earnings per diluted share on an FX-adjusted basis for the three months and year ended March 31, 2024 was $6.18 and $27.46, respectively, which excludes the foreign currency exchange effect of nil and $0.02, respectively.
Any percentage changes displayed above which are not meaningful are displayed as zero percent.
Refer to the section entitled "Financial Statement Notes" of this release.
For more information relating to the Adjusted Earnings (Non-GAAP) and Adjusted Earnings per Diluted Share (Non-GAAP) definitions, refer to the section entitled "Supplemental Non-GAAP Financial Information" of this release.
Schedule 2 (continued)
McKESSON CORPORATION
RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP)
(unaudited) (in millions)
Three Months Ended | Year Ended March 31, | |||||||||||
March 31, | ||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||
Gross profit (GAAP) | $ | 3,585 | $ | 3,066 | 17 % | $ | 12,828 | $ | 12,358 | 4 % | ||
Pre-tax adjustments: | ||||||||||||
LIFO inventory-related adjustments | (246) | 32 | (869) | (157) | 1 | - | ||||||
Gains from antitrust legal settlements | (24) | - | - | (244) | (129) | 89 | ||||||
Adjusted Gross Profit (Non-GAAP) | $ | 3,315 | $ | 3,098 | 7 % | $ | 12,427 | $ | 12,230 | 2 % | ||
Total operating expenses (GAAP) | ||||||||||||
$ | (2,369) | $ | (2,086) | 14 % | $ | (8,919) | $ | (7,977) | 12 % | |||
Pre-tax adjustments: | ||||||||||||
Amortization of acquisition-related intangibles | 63 | 66 | (5) | 249 | 236 | 6 | ||||||
Transaction-related expenses and adjustments (1) (2) | 12 | 26 | (54) | (12) | 10 | (220) | ||||||
Restructuring, impairment, and related charges, net (4) | 31 | 125 | (75) | 115 | 209 | (45) | ||||||
Claims and litigation charges, net (5) | 149 | (3) | - | 147 | (8) | - | ||||||
Other adjustments, net (6) | 27 | - | - | 762 | 26 | - | ||||||
Adjusted Operating Expenses (Non-GAAP) | $ | (2,087) | $ | (1,872) | 11 % | $ | (7,658) | $ | (7,504) | 2 % | ||
Other income, net (GAAP) | ||||||||||||
$ | 34 | $ | 31 | 10 % | $ | 132 | $ | 497 | (73)% | |||
Pre-tax adjustments: | ||||||||||||
Transaction-related expenses and adjustments (3) | - | - | - | - | (142) | (100) | ||||||
Other adjustments, net (7) | - | 1 | (100) | - | (96) | (100) | ||||||
Adjusted Other Income (Non-GAAP) | $ | 34 | $ | 32 | 6 % | $ | 132 | $ | 259 | (49)% | ||
Interest expense (GAAP) | ||||||||||||
$ | (80) | $ | (79) | 1 % | $ | (252) | $ | (248) | 2 % | |||
Pre-tax adjustments: | ||||||||||||
Transaction-related expenses and adjustments | 5 | 9 | (44) | 22 | 9 | 144 | ||||||
Adjusted Interest Expense (Non-GAAP) | $ | (75) | $ | (70) | 7 % | $ | (230) | $ | (239) | (4)% | ||
Income tax expense (GAAP) | ||||||||||||
$ | (340) | $ | (106) | 221 % | $ | (629) | $ | (905) | (30)% | |||
Tax adjustments: | ||||||||||||
Amortization of acquisition-related intangibles | (13) | (14) | (7) | (53) | (51) | 4 | ||||||
Transaction-related expenses and adjustments | (2) | (6) | (67) | 12 | 51 | (76) | ||||||
LIFO inventory-related adjustments | 64 | (8) | 900 | 41 | - | - | ||||||
Gains from antitrust legal settlements | 6 | - | - | 63 | 34 | 85 | ||||||
Restructuring, impairment, and related charges, net | (6) | (30) | (80) | (27) | (49) | (45) | ||||||
Claims and litigation charges, net | (37) | 10 | (470) | (37) | 11 | (436) | ||||||
Other adjustments, net | (6) | - | - | (197) | 17 | - | ||||||
Adjusted Income Tax Expense (Non-GAAP) | $ | (334) | $ | (154) | 117 % | $ | (827) | $ | (892) | (7)% | ||
Any percentage changes displayed above which are not meaningful are displayed as zero percent.
Refer to the section entitled "Financial Statement Notes" of this release.
For more information relating to the Adjusted Gross Profit (Non-GAAP), Adjusted Operating Expenses (Non-GAAP), Adjusted Other Income (Non-GAAP), Adjusted Interest Expense (Non-GAAP), and Adjusted Income Tax Expense (Non-GAAP) definitions, refer to the section entitled "Supplemental Non-GAAP Financial Information" of this release.
Schedule 3
McKESSON CORPORATION
RECONCILIATION OF GAAP SEGMENT OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP)
(unaudited) (in millions)
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | As reported | As adjusted | Change | |||||||||||||||||||||||||||||||||||||||||||
As | As | As | As | Foreign | FX- | Foreign | FX- | As | As | As reported | As adjusted | ||||||||||||||||||||||||||||||||||||
adjusted | adjusted | Adjusted | Adjusted | adjusted | |||||||||||||||||||||||||||||||||||||||||||
reported | Adjustments | (Non- | reported | Adjustments | (Non- | currency | (Non- | currency | (Non- | reported | (Non- | FX-Adjusted | FX-Adjusted | ||||||||||||||||||||||||||||||||||
(GAAP) | GAAP) | (GAAP) | GAAP) | effects | GAAP) | effects | GAAP) | (GAAP) | GAAP) | (Non-GAAP) | (Non-GAAP) | ||||||||||||||||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Pharmaceutical | $ | 68,790 | $ | - | $ | 68,790 | $ | 61,676 | $ | - | $ | 61,676 | $ | - | $ | 68,790 | $ | - | $ | 68,790 | 12 | % | 12 | % | 12 | % | 12 | % | |||||||||||||||||||
Prescription Technology Solutions | 1,180 | - | 1,180 | 1,182 | - | 1,182 | - | 1,180 | - | 1,180 | - | - | - | - | |||||||||||||||||||||||||||||||||
Medical-Surgical Solutions | 2,837 | - | 2,837 | 2,689 | - | 2,689 | - | 2,837 | - | 2,837 | 6 | 6 | 6 | 6 | |||||||||||||||||||||||||||||||||
International | 3,548 | - | 3,548 | 3,363 | - | 3,363 | (1) | 3,547 | (1) | 3,547 | 6 | 6 | 5 | 5 | |||||||||||||||||||||||||||||||||
Revenues | $ | 76,355 | $ | - | $ | 76,355 | $ | 68,910 | $ | - | $ | 68,910 | $ | (1) | $ | 76,354 | $ | (1) | $ | 76,354 | 11 | % | 11 | % | 11 | % | 11 | % | |||||||||||||||||||
OPERATING PROFIT (4) | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Pharmaceutical (5) | $ | 1,059 | $ | (158) | $ | 901 | $ | 764 | $ | 97 | $ | 861 | $ | - | $ | 1,059 | $ | - | $ | 901 | 39 | % | 5 | % | 39 | % | 5 | % | |||||||||||||||||||
Prescription Technology Solutions | 188 | 24 | 212 | 166 | 52 | 218 | - | 188 | - | 212 | 13 | (3) | 13 | (3) | |||||||||||||||||||||||||||||||||
Medical-Surgical Solutions | 213 | 35 | 248 | 234 | 14 | 248 | - | 213 | - | 248 | (9) | - | (9) | - | |||||||||||||||||||||||||||||||||
International | 70 | 24 | 94 | 43 | 37 | 80 | - | 70 | - | 94 | 63 | 18 | 63 | 18 | |||||||||||||||||||||||||||||||||
Subtotal | 1,530 | (75) | 1,455 | 1,207 | 200 | 1,407 | - | 1,530 | - | 1,455 | 27 | 3 | 27 | 3 | |||||||||||||||||||||||||||||||||
Corporate expenses, net (5) | (280) | 87 | (193) | (196) | 47 | (149) | - | (280) | - | (193) | 43 | 30 | 43 | 30 | |||||||||||||||||||||||||||||||||
Income from continuing | |||||||||||||||||||||||||||||||||||||||||||||||
operations before interest | $ | 1,250 | $ | 12 | $ | 1,262 | $ | 1,011 | $ | 247 | $ | 1,258 | $ | - | $ | 1,250 | $ | - | $ | 1,262 | 24 | % | - | % | 24 | % | - | % | |||||||||||||||||||
expense and income taxes | |||||||||||||||||||||||||||||||||||||||||||||||
OPERATING PROFIT AS A % OF REVENUES | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Pharmaceutical | 1.54 | % | 1.31 | % | 1.24 | % | 1.40 | % | 1.54 | % | 1.31 | % | 30 | bp | (9) bp | 30 | bp | (9) bp | |||||||||||||||||||||||||||||
Prescription Technology Solutions | 15.93 | 17.97 | 14.04 | 18.44 | 15.93 | 17.97 | 189 | (47) | 189 | (47) | |||||||||||||||||||||||||||||||||||||
Medical-Surgical Solutions | 7.51 | 8.74 | 8.70 | 9.22 | 7.51 | 8.74 | (119) | (48) | (119) | (48) | |||||||||||||||||||||||||||||||||||||
International | 1.97 | 2.65 | 1.28 | 2.38 | 1.97 | 2.65 | 69 | 27 | 69 | 27 |
Any percentage changes displayed above which are not meaningful are displayed as zero percent.
Refer to the section entitled "Financial Statement Notes" of this release.
For more information relating to the Adjusted Segment Operating Profit (Non-GAAP), Adjusted Operating Profit (Non-GAAP), Adjusted Corporate Expenses (Non-GAAP),FX-Adjusted(Non-GAAP), and Adjusted Segment Operating Profit Margin (Non-GAAP) definitions, refer to the section entitled "Supplemental Non-GAAP Financial Information" of this release.
Schedule 3 (continued)
McKESSON CORPORATION
RECONCILIATION OF GAAP SEGMENT OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP)
(unaudited) (in millions)
Year Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | As reported | As adjusted | Change | |||||||||||||||||||||||||||||||||||||
As | As | As | As | Foreign | FX- | Foreign | FX- | As | As | As reported | As adjusted | ||||||||||||||||||||||||||||||
adjusted | adjusted | Adjusted | Adjusted | adjusted | |||||||||||||||||||||||||||||||||||||
reported | Adjustments | (Non- | reported | Adjustments | (Non- | currency | (Non- | currency | (Non- | reported | (Non- | FX-Adjusted | FX-Adjusted | ||||||||||||||||||||||||||||
(GAAP) | GAAP) | (GAAP) | GAAP) | effects | GAAP) | effects | GAAP) | (GAAP) | GAAP) | (Non-GAAP) | (Non-GAAP) | ||||||||||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||||||||||||||||||||
U.S. Pharmaceutical | $ | 278,739 | $ | - | $ | 278,739 | $ | 240,616 | $ | - | $ | 240,616 | $ | - | $ | 278,739 | $ | - | $ | 278,739 | 16 | % | 16 | % | 16 | % | 16 | % | |||||||||||||
Prescription Technology Solutions | 4,769 | - | 4,769 | 4,387 | - | 4,387 | - | 4,769 | - | 4,769 | 9 | 9 | 9 | 9 | |||||||||||||||||||||||||||
Medical-Surgical Solutions | 11,313 | - | 11,313 | 11,110 | - | 11,110 | - | 11,313 | - | 11,313 | 2 | 2 | 2 | 2 | |||||||||||||||||||||||||||
International | 14,130 | - | 14,130 | 20,598 | - | 20,598 | 323 | 14,453 | 323 | 14,453 | (31) | (31) | (30) | (30) | |||||||||||||||||||||||||||
Revenues | $ | 308,951 | $ | - | $ | 308,951 | $ | 276,711 | $ | - | $ | 276,711 | $ | 323 | $ | 309,274 | $ | 323 | $ | 309,274 | 12 | % | 12 | % | 12 | % | 12 | % | |||||||||||||
OPERATING PROFIT (4) | |||||||||||||||||||||||||||||||||||||||||
U.S. Pharmaceutical (3) (5) (6) | $ | 2,786 | $ | 529 | $ | 3,315 | $ | 3,206 | $ | (100) | $ | 3,106 | $ | - | $ | 2,786 | $ | - | $ | 3,315 | (13) % | 7 | % | (13) % | 7 | % | |||||||||||||||
Prescription Technology Solutions (1) | 835 | 2 | 837 | 566 | 113 | 679 | - | 835 | - | 837 | 48 | 23 | 48 | 23 | |||||||||||||||||||||||||||
Medical-Surgical Solutions | 952 | 67 | 1,019 | 1,117 | 42 | 1,159 | - | 952 | - | 1,019 | (15) | (12) | (15) | (12) | |||||||||||||||||||||||||||
International (2) | 319 | 59 | 378 | 136 | 362 | 498 | 6 | 325 | 8 | 386 | 135 | (24) | 139 | (22) | |||||||||||||||||||||||||||
Subtotal | 4,892 | 657 | 5,549 | 5,025 | 417 | 5,442 | 6 | 4,898 | 8 | 5,557 | (3) | 2 | (3) | 2 | |||||||||||||||||||||||||||
Corporate expenses, net (2) (5) (7) (8) | (851) | 203 | (648) | (147) | (310) | (457) | (1) | (852) | (1) | (649) | 479 | 42 | 480 | 42 | |||||||||||||||||||||||||||
Income from continuing | |||||||||||||||||||||||||||||||||||||||||
operations before interest | $ | 4,041 | $ | 860 | $ | 4,901 | $ | 4,878 | $ | 107 | $ | 4,985 | $ | 5 | $ | 4,046 | $ | 7 | $ | 4,908 | (17) % | (2) % | (17) % | (2) % | |||||||||||||||||
expense and income taxes | |||||||||||||||||||||||||||||||||||||||||
OPERATING PROFIT AS A % OF REVENUES | |||||||||||||||||||||||||||||||||||||||||
U.S. Pharmaceutical | 1.00 % | 1.19 % | 1.33 % | 1.29 % | 1.00 % | 1.19 % | (33) bp | (10) bp | (33) bp | (10) bp | |||||||||||||||||||||||||||||||
Prescription Technology Solutions | 17.51 | 17.55 | 12.90 | 15.48 | 17.51 | 17.55 | 461 | 207 | 461 | 207 | |||||||||||||||||||||||||||||||
Medical-Surgical Solutions | 8.42 | 9.01 | 10.05 | 10.43 | 8.42 | 9.01 | (163) | (142) | (163) | (142) | |||||||||||||||||||||||||||||||
International | 2.26 | 2.68 | 0.66 | 2.42 | 2.25 | 2.67 | 160 | 26 | 159 | 25 |
Any percentage changes displayed above which are not meaningful are displayed as zero percent.
Refer to the section entitled "Financial Statement Notes" of this release.
For more information relating to the Adjusted Segment Operating Profit (Non-GAAP), Adjusted Operating Profit (Non-GAAP), Adjusted Corporate Expenses (Non-GAAP),FX-Adjusted(Non-GAAP), and Adjusted Segment Operating Profit Margin (Non-GAAP) definitions, refer to the section entitled "Supplemental Non-GAAP Financial Information" of this release.
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McKesson Corporation published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 20:22:47 UTC.
