Health Mart fields more than 4,600 independents on 19% membership growth
SAN FRANCISCO – McKesson on Wednesday reported that revenues for the fourth quarter ended March 31, 2016 totaled $46.7 billion, up 4%. Fourth-quarter earnings per diluted share from continuing operations was $1.97 compared to $1.69 a year ago. Fourth-quarter Adjusted Earnings per diluted share was $2.44, down 17% compared to the prior year.
For the fiscal year, McKesson had revenues of $190.9 billion, up 7%. Full-year GAAP earnings per diluted share from continuing operations was $9.84 compared to $7.54 a year ago, up 31% year-over-year. Full-year Adjusted Earnings per diluted share was $12.08, up 9% compared to the prior year.
“Distribution Solutions concluded another solid year with good performance within the segment. During Fiscal 2016, we expanded our global pharmaceutical sourcing and procurement scale, grew our Health Mart franchise to more than 4,600 members, delivered strong growth in our Specialty Health and Canadian businesses and continued to successfully execute on our planned Celesio acquisition synergies,” stated John Hammergren, chairman and CEO McKesson.
"Health Mart extended its tremendous track record of growth during fiscal 2016, ending the year with more than 4,600 stores or approximately 19% growth over the prior year," Hammergren told analysts. "I know that customer consolidation which impacted us in fiscal 2016 has caused some to question the scale and competitiveness of McKesson's generic pharmaceutical sourcing. To me, there's no better proof point than some of the examples I just walked you through, where we continue to expand our customer relationships, win new customers, deliver strong growth in our OneStop proprietary generics program, and rapidly expand the number of independent pharmacies who see real value to their bottom line by joining Health Mart. I'm incredibly confident in the strength of our relationships with our manufacturing partners and in McKesson's ability to be a great partner to them through our global procurement scale and operational footprint."
Distribution Solutions revenues were $45.9 billion for the quarter, up 4% on a reported basis and 5% on a constant currency basis. For the full year, Distribution Solutions revenues were $188 billion, up 7% on a reported basis and 9% on a constant currency basis, compared to the prior year.
North America pharmaceutical distribution and services revenues were $38.7 billion for the quarter, up 5% on a reported basis and 6% on a constant currency basis, primarily reflecting market growth and growth from existing customers. For the full year, North America pharmaceutical distribution and services revenues were $158.5 billion, up 10% on a reported basis and 11% on a constant currency basis, compared to the prior year.
Technology Solutions products and services revenues were down 5% for the fourth quarter and down 6% for the full year. Fourth-quarter and full-year Technology Solutions revenues were impacted by an anticipated year-over-year decline in our hospital software business and the sale of our nurse triage business in the first quarter. This revenue decline was partially offset by growth in McKesson's other technology businesses.