AmerisourceBergen Corporation (ABC) Bundle
A Brief History of Cencora, Inc.
Cencora, Inc., previously known as AmerisourceBergen Corporation, has undergone significant transformations and growth, especially as of 2024. The company has established itself as a leading global healthcare solutions provider, focusing on pharmaceutical distribution and healthcare services.
Company Overview
As of June 30, 2024, Cencora, Inc. reported total assets of $66.77 billion and total liabilities of $57.17 billion, resulting in stockholders' equity of $9.59 billion.
| Financial Metrics | June 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Assets | $66,772,423 | $62,558,746 |
| Total Liabilities | $57,174,132 | $53,689,724 |
| Stockholders' Equity | $9,598,291 | $8,869,022 |
Revenue Growth
In the nine months ended June 30, 2024, Cencora reported revenues of $214.91 billion, an increase from $193.25 billion in the same period of the previous year. This growth was driven by increased sales in both the U.S. Healthcare Solutions and International Healthcare Solutions segments.
| Segment Revenue | Q3 2024 | Q3 2023 |
|---|---|---|
| U.S. Healthcare Solutions | $67.19 billion | $59.90 billion |
| International Healthcare Solutions | $7.05 billion | $7.05 billion |
Net Income
For the nine months ended June 30, 2024, Cencora reported a net income of $1.51 billion, compared to $1.39 billion for the same period in 2023. The earnings per share (EPS) for this period were $7.56, up from $6.87 in the previous year.
| Net Income Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $1,511,807 | $1,394,728 |
| EPS (Basic) | $7.56 | $6.87 |
Debt Structure
As of June 30, 2024, the total debt of Cencora was $4.73 billion. The company has a multi-currency revolving credit facility of $2.4 billion, which is set to expire in October 2028.
| Debt Metrics | Outstanding Balance | Additional Availability |
|---|---|---|
| Total Fixed-Rate Debt | $4,283,192 | N/A |
| Total Variable-Rate Debt | $447,826 | $3,933,249 |
| Total Debt | $4,731,018 | N/A |
Market Position and Future Outlook
Cencora's position in the market remains strong, with significant contracts and relationships with large customers, including Walgreens Boots Alliance. The company has projected capital expenditures of approximately $500 million for fiscal 2024, primarily focused on technology initiatives.
Litigation and Legal Matters
As of June 30, 2024, Cencora has accrued litigation liability of $4.7 billion, primarily related to opioid litigation. The company regularly reviews these matters to ensure adequate accruals.
| Litigation Metrics | Amount |
|---|---|
| Accrued Litigation Liability | $4,697,695 |
A Who Owns AmerisourceBergen Corporation (ABC)
Ownership Structure
As of 2024, AmerisourceBergen Corporation (ABC) has a diverse ownership structure. The largest shareholders include institutional investors, mutual funds, and private individuals. The following table outlines the major shareholders of AmerisourceBergen Corporation:
| Shareholder | Type of Ownership | Percentage Ownership |
|---|---|---|
| Vanguard Group, Inc. | Institutional Investor | 8.3% |
| BlackRock, Inc. | Institutional Investor | 8.1% |
| Walgreens Boots Alliance, Inc. | Strategic Investor | 25.0% |
| State Street Corporation | Institutional Investor | 7.5% |
| FMR LLC (Fidelity) | Institutional Investor | 5.2% |
| Other Institutions | Various | 46.0% |
Recent Shareholder Activity
In recent years, AmerisourceBergen has engaged in significant share repurchase programs. In the nine months ended June 30, 2024, the company purchased $809.0 million of its common stock, including $522.6 million from Walgreens Boots Alliance, Inc.. This activity reflects the company's strategy to enhance shareholder value and manage capital effectively.
Impact of Major Shareholders
Walgreens Boots Alliance, Inc., as a strategic investor, holds a substantial 25% stake in AmerisourceBergen. This ownership provides Walgreens with significant influence over operational decisions and strategic direction. The presence of large institutional investors like Vanguard and BlackRock, which collectively own over 16% of the company, indicates strong institutional confidence in AmerisourceBergen's long-term growth potential.
Stock Performance and Market Trends
The stock performance of AmerisourceBergen Corporation has shown resilience, with a trading price of approximately $168.50 per share as of June 30, 2024. The company has experienced a year-to-date return of approximately 15%, which is indicative of positive market sentiment and investor confidence.
Dividends and Financial Metrics
AmerisourceBergen has consistently paid dividends, with a quarterly dividend increase of 5% from $0.485 to $0.51 per share announced in November 2023. The company’s net income for the nine months ended June 30, 2024, was reported at $1.51 billion, reflecting its strong operational performance.
| Financial Metric | Value |
|---|---|
| Net Income (Nine Months Ended June 30, 2024) | $1.511 billion |
| Quarterly Dividend (2024) | $0.51 per share |
| Stock Price (June 30, 2024) | $168.50 |
| Year-to-Date Return | 15% |
Conclusion on Ownership Dynamics
The ownership landscape of AmerisourceBergen Corporation reflects a blend of strategic partnerships and institutional investments that underpin its operational strategies and financial health. The significant stake held by Walgreens Boots Alliance, combined with robust institutional support, positions AmerisourceBergen favorably in the pharmaceutical distribution sector.
AmerisourceBergen Corporation (ABC) Mission Statement
Mission Statement Overview
AmerisourceBergen Corporation (ABC) focuses on improving patient access to healthcare by providing innovative and efficient pharmaceutical distribution and related services. The company aims to deliver value to its stakeholders through a commitment to quality, integrity, and innovation in the healthcare supply chain.
Core Values
- Integrity: Conducting business with honesty and transparency.
- Customer Focus: Prioritizing the needs of healthcare providers and patients.
- Collaboration: Working together with partners to enhance service delivery.
- Innovation: Embracing new technologies and methods to improve healthcare outcomes.
- Excellence: Striving for the highest standards in all aspects of operations.
Financial Performance Metrics
As of June 30, 2024, AmerisourceBergen reported significant financial metrics that reflect its operational success:
| Financial Metric | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Revenue | $74,241 | $66,947 | 1.9% |
| Net Income | $1,511.8 | $1,383.6 | 9.3% |
| Gross Profit | $2,410.8 | $2,264.6 | 6.5% |
| Operating Income | $877.7 | $822.3 | 6.7% |
| Earnings Per Share (Diluted) | $7.54 | $6.76 | 11.5% |
Strategic Initiatives
AmerisourceBergen is actively pursuing several strategic initiatives aimed at enhancing its mission:
- Technology Investments: Increasing capital expenditures to enhance technological capabilities, with an expected investment of approximately $500 million in fiscal 2024.
- Supply Chain Optimization: Efforts to streamline operations to ensure timely delivery of pharmaceuticals to healthcare providers.
- Partnerships: Collaborating with healthcare providers and manufacturers to improve product availability and access.
Market Position and Outlook
As of June 30, 2024, AmerisourceBergen continues to strengthen its market position in the healthcare distribution sector:
- Market Share: The U.S. Healthcare Solutions segment reported a revenue increase of $20.8 billion, reflecting a growth rate of 12.1% year-over-year.
- International Revenue: International Healthcare Solutions revenue increased by $0.8 billion, or 4.0%, compared to the previous nine-month period.
Challenges and Risk Management
AmerisourceBergen faces several challenges that may impact its mission:
- Litigation Risks: The company has accrued a total of $5.1 billion related to opioid litigation, which could affect financial performance.
- Regulatory Compliance: Adherence to healthcare regulations is crucial and requires continuous monitoring.
- Market Dynamics: Changes in market conditions and customer demands necessitate agile operational strategies.
Conclusion on Mission Execution
Through its mission-driven approach, AmerisourceBergen Corporation aims to enhance patient care and operational efficiency within the healthcare system. The company’s financial performance and strategic initiatives showcase its commitment to fulfilling its mission while addressing the challenges faced in the dynamic healthcare environment.
How AmerisourceBergen Corporation (ABC) Works
Overview of Operations
AmerisourceBergen Corporation operates as a global healthcare solutions provider. The company primarily engages in the distribution of pharmaceutical products and provides related services to healthcare providers, including hospitals, pharmacies, and clinics.
Financial Performance
As of June 30, 2024, AmerisourceBergen reported significant financial metrics:
| Metric | Q3 2024 (Three Months) | Q3 2023 (Three Months) | 2024 YTD (Nine Months) | 2023 YTD (Nine Months) |
|---|---|---|---|---|
| Revenue | $74.24 billion | $66.95 billion | $214.91 billion | $193.25 billion |
| Net Income | $483.5 million | $479.6 million | $1.51 billion | $1.38 billion |
| Gross Profit | $2.41 billion | $2.26 billion | $7.42 billion | $6.71 billion |
| Operating Expenses | $1.74 billion | $1.59 billion | $5.37 billion | $4.84 billion |
Revenue Segmentation
AmerisourceBergen's revenue is segmented into two primary divisions: U.S. Healthcare Solutions and International Healthcare Solutions. The U.S. Healthcare Solutions segment includes Human Health and Animal Health products.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | YTD 2024 Revenue | YTD 2023 Revenue |
|---|---|---|---|---|
| U.S. Healthcare Solutions | $67.19 billion | $59.90 billion | $193.67 billion | $172.83 billion |
| International Healthcare Solutions | $7.05 billion | $7.05 billion | $21.25 billion | $20.42 billion |
Cash Flow and Working Capital
For the nine months ended June 30, 2024, AmerisourceBergen provided robust cash flow metrics:
| Cash Flow Metric | Amount (in millions) |
|---|---|
| Net Cash Provided by Operating Activities | $2,484.3 million |
| Net Cash Used in Investing Activities | ($376.2 million) |
| Net Cash Used in Financing Activities | ($1,021.6 million) |
Debt and Financial Obligations
The company's total debt as of June 30, 2024, is structured as follows:
| Debt Type | Outstanding Balance | Maturity |
|---|---|---|
| Senior Notes | $4.73 billion | Varies (2024 - 2047) |
| Receivables Securitization Facility | $350 million | 2026 |
| Multi-Currency Revolving Credit Facility | $0 million (available $2.4 billion) | 2028 |
Litigation and Settlement Liabilities
As of June 30, 2024, AmerisourceBergen has accrued litigation liabilities related to opioid settlements totaling approximately $5.1 billion, reflecting ongoing legal challenges and settlements.
Operational Efficiency Metrics
AmerisourceBergen monitors its operational efficiency through various metrics:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Days Sales Outstanding | 29.0 days | 27.6 days |
| Days Inventory on Hand | 25.8 days | 27.4 days |
| Days Payable Outstanding | 60.1 days | 60.1 days |
Capital Expenditures
AmerisourceBergen's capital expenditures for the nine months ended June 30, 2024, amounted to $304.8 million, with projections of approximately $500 million in capital investments for the fiscal year.
Shareholder Returns
As of June 30, 2024, AmerisourceBergen announced a quarterly dividend of $0.51 per share, reflecting a 5% increase from the previous dividend of $0.485 per share.
How AmerisourceBergen Corporation (ABC) Makes Money
Revenue Streams
AmerisourceBergen Corporation primarily generates revenue through its two main segments: U.S. Healthcare Solutions and International Healthcare Solutions.
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Change (%) | Revenue (Nine Months 2024) | Revenue (Nine Months 2023) | Change (%) |
|---|---|---|---|---|---|---|
| U.S. Healthcare Solutions | $67.19 billion | $59.90 billion | 12.2% | $193.67 billion | $172.83 billion | 12.1% |
| International Healthcare Solutions | $7.05 billion | $7.05 billion | 0.1% | $21.25 billion | $20.42 billion | 4.0% |
| Total Revenue | $74.24 billion | $66.95 billion | 10.9% | $214.91 billion | $193.25 billion | 11.2% |
Cost Structure
The cost structure of AmerisourceBergen is heavily influenced by its cost of goods sold (COGS), which represents the direct costs attributable to the production of the goods sold by the company.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) | Nine Months 2024 | Nine Months 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Cost of Goods Sold | $71.83 billion | $64.68 billion | 10.8% | $207.49 billion | $186.55 billion | 11.2% | Gross Profit | $2.41 billion | $2.26 billion | 6.5% | $7.42 billion | $6.71 billion | 10.6% |
Operating Income and Expenses
AmerisourceBergen's operating income reflects the profitability from its core operations before interest and taxes.
| Operating Expenses | Q3 2024 | Q3 2023 | Change (%) | Nine Months 2024 | Nine Months 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Distribution, Selling, and Administrative Expenses | $1.38 billion | $1.30 billion | 6.1% | $4.17 billion | $3.92 billion | 6.5% |
| Operating Income | $672.48 million | $670.13 million | 0.4% | $2.05 billion | $1.86 billion | 9.8% |
Net Income and Earnings Per Share (EPS)
Net income is a crucial measure of profitability and is reported after all expenses, including taxes and interest.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) | Nine Months 2024 | Nine Months 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Net Income | $487.59 million | $479.21 million | 1.6% | $1.51 billion | $1.38 billion | 9.3% |
| Earnings Per Share (Basic) | $2.44 | $2.37 | 3.0% | $7.56 | $6.87 | 10.0% |
Cash Flow and Capital Expenditures
Cash flow is vital for the company's operations and growth, particularly in funding capital expenditures.
| Cash Flow Metric | Nine Months 2024 | Nine Months 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $2.48 billion | $2.08 billion |
| Capital Expenditures | $304.85 million | $282.86 million |
Debt and Financing
AmerisourceBergen's financial structure includes various forms of debt and credit facilities.
| Debt Type | Outstanding Balance (as of June 30, 2024) |
|---|---|
| Fixed-Rate Debt | $4.28 billion |
| Variable-Rate Debt | $447.83 million |
| Total Debt | $4.73 billion |
Dividend Payments
AmerisourceBergen has a history of returning value to shareholders through dividends.
| Dividend Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Cash Dividends Declared per Share | $0.51 | $0.485 |
Litigation and Legal Expenses
AmerisourceBergen faces ongoing litigation expenses, particularly related to opioid distribution lawsuits.
| Litigation Expense | Q3 2024 | Q3 2023 |
|---|---|---|
| Litigation and Opioid-Related Expenses (Credit), Net | $14.49 million | ($67.10 million) |
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