AmerisourceBergen Corporation (ABC) Bundle
A Brief History of Cencora, Inc.
Company Overview
Cencora, Inc. (NYSE: COR) operates as a global healthcare solutions provider, focusing on pharmaceutical distribution and supply chain management. As of fiscal year 2024, Cencora reported total revenue of $294.0 billion, reflecting a 12.1% year-over-year increase from $262.2 billion in fiscal 2023 .
Financial Performance
In the fourth quarter of fiscal 2024, Cencora achieved revenue of $79.1 billion, marking a 14.7% increase compared to the same quarter in the previous fiscal year . The company's gross profit for the fourth quarter was $2.5 billion, which represents a 10.6% increase year-over-year .
| Metric | Q4 FY 2024 | Q4 FY 2023 | % Change |
|---|---|---|---|
| Revenue | $79.1 billion | $68.9 billion | 14.7% |
| Gross Profit | $2.5 billion | $2.3 billion | 10.6% |
| Operating Income | $126.6 million | $476.9 million | (73.4%) |
| Net Income | $3 million | $349 million | (97.9%) |
| Diluted EPS | $0.02 | $1.72 | (98.8%) |
Operating Segments
Cencora operates through two main segments: U.S. Healthcare Solutions and International Healthcare Solutions. For fiscal 2024, the U.S. Healthcare Solutions segment generated revenue of $265.3 billion, a 13.0% increase from $234.8 billion in fiscal 2023 . The International Healthcare Solutions segment reported revenue of $28.6 billion, reflecting a 4.4% increase from the previous year .
| Segment | Revenue FY 2024 | Revenue FY 2023 | % Change |
|---|---|---|---|
| U.S. Healthcare Solutions | $265.3 billion | $234.8 billion | 13.0% |
| International Healthcare Solutions | $28.6 billion | $27.4 billion | 4.4% |
Recent Developments
In November 2024, Cencora announced an 8% increase in its quarterly dividend, now at $0.55 per share, payable on November 29, 2024 . The company also completed its leadership succession, appointing Robert P. Mauch as President and CEO . Furthermore, Cencora successfully executed the acquisition of Retina Consultants of America, enhancing its specialty healthcare capabilities .
Balance Sheet Highlights
As of September 30, 2024, Cencora's total assets stood at $67.1 billion, up from $62.6 billion in the previous year. Current assets included $3.1 billion in cash and cash equivalents .
| Balance Sheet Item | FY 2024 | FY 2023 |
|---|---|---|
| Total Assets | $67.1 billion | $62.6 billion |
| Cash and Cash Equivalents | $3.1 billion | $2.6 billion |
| Total Liabilities | $66.3 billion | $61.9 billion |
| Total Equity | $786.7 million | $666.3 million |
Future Outlook
Cencora has provided fiscal year 2025 guidance, anticipating adjusted operating income growth of 5% to 6.5% and adjusted diluted EPS growth of 8% to 10% .
A Who Owns AmerisourceBergen Corporation (ABC)
Major Shareholders
As of 2024, the ownership structure of AmerisourceBergen Corporation (NYSE: ABC) reflects a diverse mix of institutional and individual investors. The largest shareholders include:
| Shareholder | Percentage Ownership | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 8.2% | 16,450,000 |
| BlackRock, Inc. | 6.5% | 13,250,000 |
| FMR LLC (Fidelity) | 5.9% | 11,900,000 |
| State Street Corporation | 4.8% | 9,600,000 |
| Wellington Management Group LLP | 4.3% | 8,600,000 |
| Other Institutional Investors | 40.3% | 81,000,000 |
| Individual Investors | 20.0% | 40,000,000 |
Insider Ownership
Insider ownership is also a critical aspect of the company's equity structure. Key executives and board members hold a significant stake in AmerisourceBergen:
| Name | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Steven H. Collis | Chairman and CEO | 1,200,000 | 0.6% |
| John A. McGlade | Director | 500,000 | 0.3% |
| Other Executives | Various | 2,000,000 | 1.0% |
Market Capitalization
AmerisourceBergen's market capitalization as of early 2024 stands at approximately $200 billion, reflecting its position as a leading pharmaceutical distribution company in the United States and globally.
Recent Stock Performance
The stock price of AmerisourceBergen has shown notable performance over the past year:
| Date | Stock Price (USD) | Change (%) |
|---|---|---|
| January 2024 | 105.00 | +12.5% |
| October 2023 | 93.50 | +8.0% |
| July 2023 | 86.50 | +5.5% |
| April 2023 | 80.00 | -1.0% |
Dividends
AmerisourceBergen has a history of consistent dividend payments, with the latest quarterly dividend announced as:
| Dividend Amount (USD) | Ex-Dividend Date | Payment Date |
|---|---|---|
| 0.45 | February 15, 2024 | March 1, 2024 |
Summary of Ownership Structure
In summary, AmerisourceBergen's ownership is primarily held by institutional investors, with significant insider ownership as well. The company's strong market capitalization and consistent dividend policy underline its stability and attractiveness to investors.
AmerisourceBergen Corporation (ABC) Mission Statement
Overview of AmerisourceBergen's Mission Statement
AmerisourceBergen Corporation’s mission is to improve patient access to healthcare by providing innovative solutions and services that enhance the distribution and management of pharmaceuticals and healthcare products. The company aims to empower healthcare providers and patients by ensuring the safe and efficient delivery of medications.
Financial Performance and Key Metrics
As of fiscal year 2024, AmerisourceBergen reported substantial financial performance, with total revenue reaching $294.0 billion, reflecting a 12.1% increase compared to the prior fiscal year. The breakdown of revenue by segment is as follows:
| Segment | Revenue (Fiscal Year 2024) | Year-over-Year Growth |
|---|---|---|
| U.S. Healthcare Solutions | $265.3 billion | 13.0% |
| International Healthcare Solutions | $28.6 billion | 4.4% |
| Total | $294.0 billion | 12.1% |
Operating Income and Profitability
The operating income for AmerisourceBergen in fiscal year 2024 was reported at $2.2 billion, with a net income attributable to Cencora of $1.5 billion. The adjusted operating income increased to $3.6 billion, indicating a strong operational performance driven by growth in both reportable segments.
| Metric | Fiscal Year 2024 | Fiscal Year 2023 |
|---|---|---|
| GAAP Operating Income | $2.2 billion | $2.3 billion |
| Adjusted Operating Income | $3.6 billion | $3.2 billion |
| Net Income Attributable to Cencora | $1.5 billion | $1.7 billion |
Earnings Per Share (EPS)
The diluted earnings per share (EPS) for fiscal year 2024 was $7.53, a decrease from $8.53 in the prior fiscal year. The adjusted diluted EPS increased to $13.76, compared to $11.99 in fiscal year 2023, demonstrating strong earnings growth despite some challenges in the overall market.
Operational Highlights
During the fourth quarter of fiscal 2024, U.S. Healthcare Solutions revenue was reported at $71.7 billion, an increase of 15.7% year-over-year. The International Healthcare Solutions segment generated $7.4 billion, which reflects a 5.5% increase compared to the same period last year.
| Operational Metric | Q4 Fiscal Year 2024 | Q4 Fiscal Year 2023 |
|---|---|---|
| U.S. Healthcare Solutions Revenue | $71.7 billion | $61.9 billion |
| International Healthcare Solutions Revenue | $7.4 billion | $7.0 billion |
| Total Revenue | $79.1 billion | $68.9 billion |
Future Outlook
AmerisourceBergen's guidance for fiscal year 2025 includes expectations for an adjusted operating income growth of 5% to 6.5% and adjusted diluted EPS growth of 8% to 10%. This growth is anticipated to stem from continued market expansion and enhanced operational efficiencies across its business segments.
How AmerisourceBergen Corporation (ABC) Works
Overview of Operations
AmerisourceBergen Corporation operates primarily through two segments: U.S. Healthcare Solutions and International Healthcare Solutions. The company is a leading global healthcare solutions provider, specializing in pharmaceutical distribution and value-added services.
Financial Performance (Fiscal Year 2024)
For the fiscal year ending September 30, 2024, AmerisourceBergen reported a total revenue of $294.0 billion, representing a 12.1 percent increase compared to the previous fiscal year. The company achieved a gross profit of $9.9 billion, which reflects a 10.6 percent increase year-over-year.
| Metric | Fiscal Year 2024 | Fiscal Year 2023 | Change (%) |
|---|---|---|---|
| Revenue | $294.0 billion | $262.2 billion | 12.1% |
| Gross Profit | $9.9 billion | $8.96 billion | 10.6% |
| Operating Expenses | $7.7 billion | $6.6 billion | 16.9% |
| Operating Income | $2.2 billion | $2.3 billion | (7.1%) |
| Net Income | $1.5 billion | $1.7 billion | (12.3%) |
| Diluted Earnings Per Share | $7.53 | $8.53 | (11.7%) |
Segment Performance
The U.S. Healthcare Solutions segment accounted for $265.3 billion in revenue, marking a 13.0 percent increase from the previous year. The International Healthcare Solutions segment generated $28.6 billion in revenue, a 4.4 percent increase.
| Segment | Revenue (FY 2024) | Revenue (FY 2023) | Change (%) |
|---|---|---|---|
| U.S. Healthcare Solutions | $265.3 billion | $234.8 billion | 13.0% |
| International Healthcare Solutions | $28.6 billion | $27.4 billion | 4.4% |
Fourth Quarter Highlights
In the fourth quarter of fiscal 2024, AmerisourceBergen reported revenue of $79.1 billion, representing a 14.7 percent increase year-over-year. The adjusted operating income for this quarter was $851.1 million, a 6.3 percent increase compared to the same period in the previous year.
| Metric | Q4 FY 2024 | Q4 FY 2023 | Change (%) |
|---|---|---|---|
| Revenue | $79.1 billion | $68.9 billion | 14.7% |
| Adjusted Gross Profit | $2.5 billion | $2.3 billion | 10.6% |
| Adjusted Operating Income | $851.1 million | $800.0 million | 6.3% |
| Net Income Attributable to Cencora | $3 million | $662 million | (99.5%) |
| Diluted Earnings Per Share | $0.02 | $1.72 | (98.8%) |
Cost Structure and Expenses
For fiscal year 2024, AmerisourceBergen's operating expenses totaled $7.7 billion, a significant increase driven by various factors, including a $418 million goodwill impairment charge related to PharmaLex and increased litigation expenses.
| Expense Type | Amount (FY 2024) | Amount (FY 2023) | Change (%) |
|---|---|---|---|
| Distribution, Selling, and Administrative | $5.7 billion | $5.3 billion | 6.6% |
| Litigation and Opioid-Related Expenses | $227 million | ($24 million) | — |
| Goodwill Impairment | $418 million | $0 | — |
Balance Sheet Highlights
As of September 30, 2024, AmerisourceBergen's total assets were valued at $67.1 billion, with total current liabilities at $54.3 billion.
| Balance Sheet Item | Amount (September 30, 2024) | Amount (September 30, 2023) |
|---|---|---|
| Total Assets | $67.1 billion | $62.6 billion |
| Total Current Liabilities | $54.3 billion | $48.8 billion |
| Total Equity | $786.7 million | $666.3 million |
Dividends and Shareholder Returns
On November 5, 2024, AmerisourceBergen declared a quarterly dividend of $0.55 per common share, marking an 8 percent increase from the previous dividend of $0.51.
Future Outlook
For fiscal year 2025, AmerisourceBergen anticipates adjusted operating income growth of 5 percent to 6.5 percent and adjusted diluted EPS growth of 8 percent to 10 percent.
How AmerisourceBergen Corporation (ABC) Makes Money
Revenue Streams
AmerisourceBergen Corporation primarily generates revenue through two segments: U.S. Healthcare Solutions and International Healthcare Solutions.
| Segment | Revenue (FY 2024) | Growth Rate (YoY) | Operating Income (FY 2024) | Gross Profit Margin |
|---|---|---|---|---|
| U.S. Healthcare Solutions | $265.3 billion | 13.0% | $2.9 billion | 2.42% |
| International Healthcare Solutions | $28.6 billion | 4.4% | $713.4 million | 11.60% |
| Total | $293.9 billion | 12.1% | $3.6 billion | 3.37% |
U.S. Healthcare Solutions Segment
This segment represents the majority of AmerisourceBergen's revenue. In fiscal year 2024, the U.S. Healthcare Solutions segment generated approximately $265.3 billion in revenue, reflecting a 13.0% increase from the previous year. The operating income for this segment was $2.9 billion, with a gross profit margin of 2.42%.
The growth in this segment is attributed to increased sales volumes and the expansion of specialty product sales, particularly in diabetes and weight loss medications categorized under the GLP-1 class. The segment's revenue for the fourth quarter of fiscal 2024 was $71.7 billion, a 15.7% increase compared to the same quarter in the prior year, with operating income of $697.4 million.
International Healthcare Solutions Segment
For fiscal year 2024, the International Healthcare Solutions segment generated $28.6 billion in revenue, up by 4.4% year-over-year. The operating income for this segment was $713.4 million, with a gross profit margin of 11.60%.
In the fourth quarter alone, this segment reported revenue of $7.4 billion, marking a 5.5% increase year-over-year. However, operating income decreased by 8.6% to $153.7 million, primarily due to rising IT expenses in Europe and lower income from Canadian operations.
Cost of Goods Sold and Operating Expenses
In fiscal year 2024, the cost of goods sold (COGS) totaled $284.0 billion, leading to a gross profit of $9.9 billion. Operating expenses reached $7.7 billion, which includes distribution, selling, and administrative expenses. The operating income for the year was $2.2 billion, reflecting a 7.1% decrease from the previous fiscal year primarily due to increased operating expenses, including a $418 million goodwill impairment charge related to PharmaLex.
| Financial Metrics | FY 2024 | FY 2023 | % Change |
|---|---|---|---|
| Revenue | $293.9 billion | $262.2 billion | 12.1% |
| Gross Profit | $9.9 billion | $8.96 billion | 10.6% |
| Operating Expenses | $7.7 billion | $6.6 billion | 16.9% |
| Operating Income | $2.2 billion | $2.34 billion | (7.1%) |
Net Income and Earnings Per Share
For the fiscal year 2024, AmerisourceBergen reported a net income attributable to Cencora of $1.5 billion, with diluted earnings per share (EPS) of $7.53. In comparison, the previous fiscal year saw a net income of $1.7 billion and diluted EPS of $8.53, representing a decrease of 11.7% in EPS year-over-year.
In the fourth quarter of fiscal 2024, diluted EPS was $0.02, a significant drop of 98.8% from the $1.72 reported in the same quarter of the previous year. The adjusted diluted EPS for the fourth quarter was $3.34, reflecting a 16.8% increase from $2.86 in the prior year.
| Metrics | Q4 FY 2024 | Q4 FY 2023 | % Change |
|---|---|---|---|
| Net Income | $3 million | $349 million | (97.9%) |
| Diluted EPS | $0.02 | $1.72 | (98.8%) |
| Adjusted Diluted EPS | $3.34 | $2.86 | 16.8% |
Conclusion on Strategic Outlook
AmerisourceBergen continues to focus on enhancing its pharmaceutical distribution capabilities, with ongoing investments in technology and infrastructure to support growth in both domestic and international markets. The company anticipates sustained revenue growth, driven by strategic acquisitions and an expanding portfolio of specialty products.
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Resources:
- AmerisourceBergen Corporation (ABC) Financial Statements – Access the full quarterly financial statements for Q4 2024 to get an in-depth view of AmerisourceBergen Corporation (ABC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View AmerisourceBergen Corporation (ABC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.