Cencora Reports Strong Revenue Growth in Fourth Quarter, Announces Strategic Initiatives

Cencora

CONSHOHOCKEN, PACencora, Inc. (NYSE: COR) has reported impressive financial results for its fiscal year 2024 fourth quarter, marking a 14.7% increase in revenue to $79.1 billion. The company attributed this growth to a notable performance in its U.S. Healthcare Solutions segment, which saw a revenue boost of 15.7%.

Despite the increase in revenue, Cencora’s GAAP diluted earnings per share (EPS) dropped to $0.02 in the quarter, down from $1.72 in the same period last year. Adjusted diluted EPS, however, rose 16.8% to $3.34, highlighting the company’s ability to manage its core business operations effectively.

Bob Mauch, President and CEO of Cencora, highlighted the company’s strategic advancements, saying, “Cencora took important steps forward in fiscal 2024 as we continued to evolve our global enterprise through the advancement of our pharmaceutical distribution capabilities and execute on our strategy.” He noted that the recent acquisition announcement of Retina Consultants of America aligns with the company’s goal to expand its specialty services.

Operating expenses for the quarter rose by 33.2%, primarily due to a goodwill impairment charge related to PharmaLex, increased distribution costs, and litigation expenses. These factors contributed to a significant decrease in operating income, which fell 73.4% to $126.6 million.

Looking ahead to fiscal 2025, Cencora remains optimistic. Mauch stated, “As we move into fiscal 2025, we are leading with a customer-centric approach, embracing an enterprise-powered mindset and a focus on learning to ensure we remain a differentiated healthcare solutions provider.” The company projects an adjusted diluted EPS growth of 8% to 10% and revenue growth between 7% and 9%.

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In addition, Cencora announced an 8% increase in its quarterly dividend, reflecting its commitment to returning value to shareholders. The dividend of $0.55 per share is payable on November 29, 2024.

Cencora’s financial performance underscores its strategic focus and robust market position, with continued investments in growth and innovation expected to drive future success.

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