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Cencora Inc. (COR-0.86%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing an increase in revenue to $81,487,060,000 from $72,252,833,000 in the same quarter the previous year. This increase is attributed to growth in the U.S. Healthcare Solutions segment, driven by market growth and increased sales of products labeled for diabetes and/or weight loss in the GLP-1 class.
Gross profit for the quarter was $2,558,038,000, compared to $2,468,812,000 in the previous year, with the increase primarily due to higher sales, offset by a decrease in the LIFO credit and lower gains from antitrust litigation settlements.
Operating expenses increased to $1,851,784,000 from $1,645,937,000, primarily due to litigation and opioid-related expenses and an increase in distribution, selling, and administrative expenses.
Net income for the quarter was $493,719,000, down from $603,008,000 in the previous year. The decrease in net income is attributed to higher operating expenses and lower gains from antitrust litigation settlements.
Cencora reported cash used in operating activities of $2,718,782,000, compared to cash provided by operating activities of $885,157,000 in the previous year. The decrease is primarily due to changes in working capital, including increases in accounts receivable and inventories.
The company completed the acquisition of Retina Consultants of America, with a cash outlay of $4.4 billion, and issued $1.8 billion in senior notes to finance part of the acquisition.
Cencora's effective tax rate for the quarter was 20.4%, compared to 23.0% in the previous year, with the decrease primarily due to the benefit of income taxed at rates lower than the U.S. statutory rate.
The filing also details various financial agreements, including a multi-currency revolving credit facility and a receivables securitization facility, both of which were utilized to address seasonal short-term working capital needs.
Cencora continues to face legal proceedings related to opioid lawsuits and investigations, with an accrued litigation liability of $4.8 billion as of December 31, 2024, expected to be paid over 14 years.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Cencora Inc. quarterly 10-Q report dated February 5, 2025. To report an error, please email earnings@qz.com.