ABC Q1 2013 revenue up 6%

VALLEY FORGE, Pa. — AmerisourceBergen on Thursday reported revenue of $21.5 billion, up 5.7%, for the first quarter ended Dec. 31. “We are off to a solid start in our fiscal year 2013, with December quarter results in line with our expectations,” said Steven Collis, ABC president and CEO. “During the quarter, we successfully implemented our previously announced new contract with our largest customer, and we continued to make progress on the integration of World Courier. As we look ahead, we are well-positioned to meet our objectives for the year and to continue to have significant financial flexibility.”

Pharmaceutical distribution revenues totaled $21.1 billion, an increase of 5% compared to the same quarter in the prior year. The increase was credited primarily to an increase in sales volume resulting from the implementation of a new contract with the company's largest customer, offset in part by the loss of a food and drug retail group purchasing organization. 

Despite the headwind of the lost customer, Collis was confident AmerisourceBergen would reach previously projected earning targets. “Looking ahead, [AmerisourceBergen] continues to expect diluted earnings per share from continuing operations in fiscal year 2013 to be in the range of $3.06 to $3.16,” Collis said. “Key assumptions supporting that range are: revenue growth in the 6% to 9% range; operating income growth in the 3% to 5% range; an operating margin decline in the high single- to low double-digit basis points range; and free cash flow in the range of $750 million to $850 million, which includes capital expenditures in the $180 million range. Subject to market conditions, we expect to spend approximately $400 million to repurchase our common shares in fiscal year 2013.”

Follow us on LinkedIn for the most in-depth coverage of drug store news.