Tomahawk, WI 10/03/2013 (BasicsMedia) – Walgreen Company (NYSE:WAG) with a market cap of more than $53 billion runs a number of drug stores all over the U.S. Customers can get consumer goods and services, as well as pharmaceutical products from WAG drugstores all over the U.S. Its services and products are availed to all communities in the U.S. The company has just announced its latest quarterly financials where it appears that it has made profits. The good news about this announcement is the fact that the company’s profits have improved by close to 86%. How has this been achieved?

 Investors and Wall Street Love Profitable WAG

 It is always wonderful news when companies announce profits since this is what Wall Street analysts and industry experts as well as shareholders want to hear. A company which is unable to make profits is a source of serious headache to all the concerned parties. WAG already occupies a very special place in the American economy, what with being ranked as the largest drugstore chain in the entire nation. But even this is not guarantee that it will succeed in making profits, and making them in record amounts as it was recently reported through its quarterly financials.

 It appears that the single reason which led to this record increase in WAG’s profits is its acquisition of Alliance Boots, which is a European retailer in health and beauty. The other reason which led to these profits is the fact that the company filled out more prescriptions in this quarter than any other thus far in 2013. Its stores also enjoyed wonderful performance and this was not just limited to the pharmacy. WAG already enjoys 45% stake in Alliance Boots, but it has been given the option of buying the business in its entirety in 2015.

 Comparison of WAG’s Performance in 2013 and 2012

 Last year, during the quarter ending on August 31, WAG earned $353 million. This year, during the same quarter, the company has seen its earnings shoot to $657 million. This is based on revenues which saw an increase of 5% to settle at more than $17.9 billion. Last years “last-in-first-out” inventory at WAG was reported at $132 million during the quarter which ended on August 31. This year’s similar inventory has fallen to $8 million during the same quarter. Its decision to acquire AmerisourceBergen Corp is likely to increase its profits even further.

 If the acquisition of AmerisourceBergen Corp will have a similar bearing on WAG’s revenues and profits as Alliance Boots has done, then the company is headed for some wonderful period of sustainable profitability. Its acquisition of Alliance Boots, which is listed as the biggest drugstore chain in the U.K, for around $4 billion in cash added to the 83.4 million of its shares, has already ensured that WAG has saved close to $154 million thus far. This is money which has improved the company’s cash flow and will continue doing so going forward.

 It is safe to say that WAG has enjoyed a stellar 2013 thus far. It has made certain decisions which have brought it some favorable results, as indicated by its latest quarterly financial results.

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