WBA fourth quarter sales from continuing operations decreased 5.3 percent from the year-ago quarter to $32.4 billion, a decrease of 3.2 percent on a constant currency basis.

Sales growth at Walgreens and in the International segment, and sales contributions from the U.S. Healthcare segment were more than offset by a 660 basis point impact from the sales decline at AllianceRx Walgreens.

Fourth quarter operating loss from continuing operations was $822 million compared to operating income of $910 million in the year-ago quarter.

Operating loss in the quarter reflects a $783 million non-cash impairment charge related to intangible assets in Boots UK, and higher costs related to the Transformational Cost Management Program.

Adjusted operating income from continuing operations was $744 million, a decrease of 38.2 percent on a constant currency basis, reflecting lower U.S. pharmacy operating results as it lapped higher volumes of prior year COVID-19 vaccinations, and growth investments in U.S. Healthcare, partly offset by improved retail contributions in both the U.S. Retail Pharmacy and International segments.

Net loss from continuing operations in the fourth quarter was $415 million compared to net income of $358 million in the year-ago quarter, reflecting the decline in operating income, which was partly offset by the favorable impact of a lower tax rate, and a gain on the sale of a portion of the Company’s equity method investment in Option Care Health.

Adjusted net earnings from continuing operations decreased 31.9 percent to $694 million, down 30.2 percent on a constant currency basis compared with the year-ago quarter.

Loss per share from continuing operations was $0.48, compared to earnings per share of $0.41 in the year-ago quarter. Adjusted earnings per share from continuing operations decreased 31.8 percent to $0.80, reflecting a decrease of 30.0 percent on a constant currency basis.

Net cash provided by operating activities was $85 million in the fourth quarter and free cash flow was $(407) million, a $1.3 billion decrease compared with the year-ago quarter driven primarily by lower operating income, pre-buy of seasonal inventory, U.S. legal settlements, and increased capital expenditures in growth initiatives, partly offset by working capital timing benefits.

When it comes to fiscal 2023, the company expects adjusted EPS of $4.45 to $4.65, in the midpoint of the FactSet projections of $4.51. U.S. Healthcare fiscal 2025 sales target was lifted to $11 billion to $12 billion from $9 billion to $10 billion.