On November 2, 2023, Cencora Inc (COR, Financial) released its earnings report for the fourth quarter and full fiscal year of 2023. The company reported a 12.7% year-over-year increase in Q4 revenue, reaching $68.9 billion. For the full fiscal year, revenue increased by 9.9% to $262.2 billion.
Financial Performance
According to the report, Cencora's Q4 GAAP diluted earnings per share (EPS) was $1.72, compared to $1.40 in the same quarter of the previous year. The adjusted diluted EPS, a non-GAAP measure, increased by 10.0% to $2.86. For the full fiscal year 2023, the GAAP diluted EPS increased by 6.1% to $8.53, and the adjusted diluted EPS increased by 8.7% to $11.99.
Company's Commentary
Steven H. Collis, Chairman, President, and Chief Executive Officer of Cencora, commented on the company's performance, stating,
Cencora delivered strong performance in fiscal 2023, which was a seminal year for our company as our purpose-driven teams took key steps to execute on our strategic imperatives and advance our position at the center of healthcare."
Financial Tables Summary
The company's Q4 GAAP results showed a 12.7% increase in revenue, a 13.5% increase in gross profit, and a 4.9% increase in operating income. However, operating expenses also increased by 16.0%. The effective tax rate was 21.8%, and the net income attributable to Cencora was $351 million.
On the other hand, the adjusted (non-GAAP) results showed a 9.4% increase in adjusted gross profit and an 8.0% increase in adjusted operating income. Adjusted operating expenses increased by 10.2%, and the adjusted effective tax rate was 21.6%. The adjusted net income attributable to Cencora was $581 million.
Segment Performance
The U.S. Healthcare Solutions segment saw a 13.0% increase in revenue and a 9.4% increase in operating income. The International Healthcare Solutions segment reported a 9.5% increase in revenue and a 3.1% increase in operating income.
Fiscal Year 2023 Summary Results
For the full fiscal year 2023, Cencora reported a 9.9% increase in revenue, an 8.0% increase in gross profit, and a 1.1% decrease in operating income on a GAAP basis. On an adjusted (non-GAAP) basis, the company reported a 7.3% increase in adjusted gross profit and a 4.0% increase in adjusted operating income.
The company also highlighted recent milestones, including its name change from AmerisourceBergen and the declaration of a quarterly dividend of $0.51 per common share.
Explore the complete 8-K earnings release (here) from Cencora Inc for further details.
