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Tim Wentworth to take helm at Walgreens amid disappointing profits

EditorAmbhini Aishwarya
Published 2023-10-13, 02:10 a/m
Updated 2023-10-13, 02:10 a/m
© Reuters.

On Thursday, it was announced that Tim Wentworth, former CEO of Evernorth, will assume the role of CEO at Walgreens Boots Alliance (NASDAQ:WBA) on October 23, 2023. This news follows a disappointing fiscal year for the company, marked by a significant pharmacist walkout and weaker-than-expected profits.

Wentworth brings with him a wealth of experience from his time at Evernorth and Express Scripts (NASDAQ:ESRX), where he managed care provision, pharmacy solutions, benefits management, and led the merger with Medco Health Solutions. His appointment contrasts with the previous CEO Rosalind Brewer's background in consumer goods.

The incoming CEO is set to lead WBA's evolution as the company aims to become a leading partner in reimagining local healthcare. The company is committed to addressing challenges facing health plans, healthcare providers, pharmacies, and retailers while focusing on delivering personalized, coordinated care through its trusted brand.

The company recently reported an 8.3% rise in fourth-quarter sales to $35.4 billion and a 5.6% increase in full fiscal year revenues to $139.1 billion. However, despite a 6.4% improvement in pharmacy sales, retail sales fell by 4.3% due to reduced consumer spending, lower demand for COVID test kits, and weak respiratory seasonal item sales.

Walgreens' net loss for the fourth quarter was $180 million, down from last year's $415 million for the same period. The annual net loss was $3.1 billion, contrasting sharply with last year's net earnings of $4.3 billion due to opioid-related claims, litigation costs, and transformation efforts.

Interim CEO Ginger Graham announced planned cost reductions of $1 billion to align costs with business performance. Stefano Pessina, the Executive Chairman of WBA, acknowledged Graham's interim leadership and praised Wentworth's extensive expertise in the healthcare sector.

The company has been grappling with a significant pharmacist walkout, with thousands of pharmacy workers citing unsafe working conditions and chronic understaffing. This led to massive prescription backlogs and vaccine administration challenges, resulting in dissatisfied consumers. In response, a Walgreens spokesperson committed to addressing the concerns raised by the team members.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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