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McKesson Corporation (MCK+0.81%) has submitted its Form 10-Q filing for the quarterly period ended December 31, 2024.
The filing reports an 18% increase in revenues to $95.3 billion for the three months ended December 31, 2024, compared to the same period in the previous year. This increase was primarily driven by higher volumes from retail national account customers and growth in specialty pharmaceuticals.
Gross profit for the quarter increased by 4% to $3.3 billion, with a gross profit margin of 3.45%. The increase in gross profit was mainly due to growth in specialty pharmaceuticals within the U.S. Pharmaceutical segment.
Total operating expenses decreased by 18% to $2.1 billion for the quarter. This decrease was influenced by a prior year's provision for bad debts related to the bankruptcy of Rite Aid.
Net income attributable to McKesson Corporation for the quarter was $879 million, an increase from $589 million in the previous year. Diluted earnings per common share rose to $6.95 from $4.42.
The company reported a net cash outflow from operating activities of $1.7 billion for the nine months ended December 31, 2024, compared to a cash inflow of $167 million in the prior year period. This was primarily due to changes in working capital, including increases in receivables and inventories.
During the quarter, McKesson completed the sale of its Canadian retail disposal group, resulting in a charge of $666 million to remeasure the assets and liabilities to fair value less costs to sell.
McKesson also announced a definitive agreement to acquire a controlling interest in PRISM Vision Holdings, a provider of ophthalmology and retina management services, for approximately $850 million. This transaction is subject to customary closing conditions and regulatory clearance.
The company's Board of Directors approved an increase in the quarterly dividend to $0.71 per share and authorized an additional $4.0 billion for share repurchases, with $7.8 billion remaining under the repurchase program as of December 31, 2024.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the McKesson Corporation quarterly 10-Q report dated February 6, 2025. To report an error, please email earnings@qz.com.