Cencora Reports Fiscal 2025 First Quarter Results

Revenue of $81.5 billion for the First Quarter, a 12.8 Percent Increase Year-Over-Year

First Quarter GAAP Diluted EPS of $2.50 and Adjusted Diluted EPS of $3.73

Adjusted Diluted EPS Guidance Range Raised to $15.25 to $15.55 for Fiscal 2025

CONSHOHOCKEN, Pa.–(BUSINESS WIRE)–Cencora, Inc. (NYSE: COR) reported that in its fiscal year 2025 first quarter ended December 31, 2024, revenue increased 12.8 percent year-over-year to $81.5 billion. On the basis of U.S. generally accepted accounting principles (GAAP), diluted earnings per share (EPS) was $2.50 for the first quarter of fiscal 2025 compared to $2.98 in the prior year first quarter. Adjusted diluted EPS, which is a non-GAAP financial measure that excludes items described below, increased 13.7 percent to $3.73 in the fiscal first quarter from $3.28 in the prior year first quarter.

Cencora is updating its outlook for fiscal year 2025. The Company does not provide forward-looking guidance on a GAAP basis as discussed below in Fiscal Year 2025 Expectations. Adjusted diluted EPS guidance has been raised from the previous range of $15.15 to $15.45 to a range of $15.25 to $15.55.

“Cencora delivered an excellent start to fiscal 2025 as we focused on advancing our core capabilities and enhancing our value proposition through differentiated services and solutions,” said Robert P. Mauch, President and Chief Executive Officer of Cencora. “We are excited to have closed on our acquisition of Retina Consultants of America on January 2^nd, which drives forward our leadership in Specialty and will help us continue to deliver on our strategic imperatives.”

“Our team members’ dedication to leading with a customer-centric approach and executing on our pharmaceutical-centric strategy enables us to maintain our position as a leading healthcare services provider and drive value for our customers, partners and shareholders,” Mauch continued.

First Quarter Fiscal Year 2025 Summary Results

	GAAP	Adjusted (Non-GAAP)
Revenue	$81.5B	$81.5B
Gross Profit	$2.6B	$2.5B
Operating Expenses	$1.9B	$1.6B
Operating Income	$706M	$949M
Interest Expense, Net	$28M	$28M
Effective Tax Rate	20.4%	20.0%
Net Income Attributable to Cencora, Inc.	$489M	$728M
Diluted Earnings Per Share	$2.50	$3.73
Diluted Shares Outstanding	195.2M	195.2M

Below, Cencora presents descriptive summaries of the Company’s GAAP and adjusted (non-GAAP) quarterly results. In the tables that follow, GAAP results and GAAP to non-GAAP reconciliations are presented. For more information related to non-GAAP financial measures, including adjustments made in the periods presented, please refer to the “Supplemental Information Regarding Non-GAAP Financial Measures” following the tables.

First Quarter GAAP Results

Revenue: In the first quarter of fiscal 2025, revenue was $81.5 billion, up 12.8 percent compared to the same quarter in the previous fiscal year, primarily due to a 13.6 percent increase in revenue within the U.S. Healthcare Solutions segment.

Gross Profit: Gross profit in the first quarter of fiscal 2025 was $2.6 billion, a 3.6 percent increase compared to the same period in the previous fiscal year, primarily due to the increases in gross profit in both reportable segments, offset in part by a decrease in the LIFO credit and lower gains from antitrust litigation settlements. Gross profit as a percentage of revenue was 3.14 percent, a decrease of 28 basis points from the prior year quarter due to the decline in U.S. Healthcare Solutions gross profit margin primarily due to increased sales of products labeled for diabetes and/or weight loss in the GLP-1 class, which have lower gross profit margins, lower COVID-19 vaccine sales and a lack of exclusive COVID-19 therapy sales, which have higher gross profit margins.

Operating Expenses: In the first quarter of fiscal 2025, operating expenses were $1.9 billion, a 12.5 percent increase compared to the same quarter in the previous fiscal year, primarily due to litigation and opioid-related expenses, which was a credit in the prior year quarter due to an opioid litigation settlement accrual reduction, and an increase in distribution, selling, and administrative expenses to support revenue growth.

Operating Income: In the first quarter of fiscal 2025, operating income was $706.3 million, a 14.2 percent decrease compared to the same period in the previous fiscal year due to the increase in operating expenses, offset in part by the increase in gross profit. Operating income as a percentage of revenue was 0.87 percent in the first quarter of fiscal 2025 compared to 1.14 percent for the same period in the previous fiscal year.

Interest Expense, Net: In the first quarter of fiscal 2025, net interest expense of $27.9 million decreased 31.1 percent compared to the same quarter in the previous fiscal year due to an increase in interest income as a result of higher average investment cash balances and higher investment interest rates outside the United States, offset in part by an increase in interest expense. Interest expense increased as a result of the issuance of $1.8 billion of senior notes in December 2024 to finance a portion of the Retina Consultants of America (RCA) acquisition and increased intra-period borrowings to cover seasonal short-term working capital needs, offset in part by a decrease in foreign subsidiary borrowings.

Effective Tax Rate: The effective tax rate was 20.4 percent for the first quarter of fiscal 2025. The effective tax rate was 23.0 percent in the prior year quarter.

Diluted Earnings Per Share: Diluted earnings per share was $2.50 in the first quarter of fiscal 2025, a 16.1 percent decrease compared to $2.98 in the previous fiscal year’s first quarter.

Diluted Shares Outstanding: Diluted weighted average shares outstanding for the first quarter of fiscal 2025 were 195.2 million, a decrease of 3.3 percent versus the prior fiscal year first quarter primarily due to share repurchases.

First Quarter Adjusted (non-GAAP) Results

Revenue: No adjustments were made to the GAAP presentation of revenue. In the first quarter of fiscal 2025, revenue was $81.5 billion, up 12.8 percent compared to the same quarter in the previous fiscal year, primarily due to a 13.6 percent increase in revenue within the U.S. Healthcare Solutions segment.

Adjusted Gross Profit: Adjusted gross profit in the first quarter of fiscal 2025 was $2.5 billion, a 6.1 percent increase compared to the same period in the previous fiscal year due to the increase in gross profit in both reportable segments. Adjusted gross profit as a percentage of revenue was 3.11 percent in the fiscal 2025 first quarter, a decrease of 20 basis points from the prior year quarter due to the decline in U.S. Healthcare Solutions gross profit margin primarily due to increased sales of products labeled for diabetes and/or weight loss in the GLP-1 class, which have lower gross profit margins, lower COVID-19 vaccine sales and a lack of exclusive COVID-19 therapy sales, which have higher gross profit margins.

Adjusted Operating Expenses: In the first quarter of fiscal 2025, adjusted operating expenses were $1.6 billion, a 5.5 percent increase compared to the same period in the previous fiscal year, primarily driven by an increase in distribution, selling, and administrative expenses to support revenue growth.

Adjusted Operating Income: In the first quarter of fiscal 2025, adjusted operating income was $949.3 million, a 7.2 percent increase compared to the same period in the prior fiscal year, driven by a 9.9 percent increase in the U.S. Healthcare Solutions segment, partially offset by a 2.9 percent decrease in the International Healthcare Solutions segment. Adjusted operating income as a percentage of revenue was 1.16 percent in the fiscal 2025 first quarter, a decrease of 7 basis points when compared to the prior year quarter.

Interest Expense, Net: No adjustments were made to the GAAP presentation of net interest expense. In the first quarter of fiscal 2025, net interest expense of $27.9 million decreased 31.1 percent compared to the same quarter in the previous fiscal year due to an increase in interest income as a result of higher average investment cash balances and higher investment interest rates outside the United States, offset in part by an increase in interest expense. Interest expense increased as a result of the issuance of $1.8 billion of senior notes in December 2024 to finance a portion of the RCA acquisition and increased intra-period borrowings to cover seasonal short-term working capital needs, offset in part by a decrease in foreign subsidiary borrowings.

Adjusted Effective Tax Rate: The adjusted effective tax rate was 20.0 percent for the first quarter of fiscal 2025 compared to 21.0 percent in the prior year quarter.

Adjusted Diluted Earnings Per Share: Adjusted diluted earnings per share was $3.73 in the first quarter of fiscal 2025, a 13.7 percent increase compared to $3.28 in the previous fiscal year’s first quarter.

Diluted Shares Outstanding: No adjustments were made to the GAAP presentation of diluted shares outstanding. Diluted weighted average shares outstanding for the first quarter of fiscal 2025 were 195.2 million, a decrease of 3.3 percent versus the prior fiscal year first quarter primarily due to share repurchases.

Segment Discussion

The Company is organized geographically based upon the products and services it provides to its customers under two reportable segments: U.S. Healthcare Solutions and International Healthcare Solutions.

U.S. Healthcare Solutions

U.S. Healthcare Solutions revenue was $74.0 billion in the first quarter of fiscal 2025, an increase of 13.6 percent compared to the same quarter in the previous fiscal year due to overall market growth primarily driven by unit volume growth, including increased sales of products labeled for diabetes and/or weight loss in the GLP-1 class and increased sales of specialty products to physician practices and health systems. Segment operating income of $767.3 million in the first quarter of fiscal 2025 was up 9.9 percent compared to the same period in the previous fiscal year primarily due to the increase in gross profit, offset in part by the increase in operating expenses.

International Healthcare Solutions

International Healthcare Solutions revenue was $7.5 billion in the first quarter of fiscal 2025, an increase of 5.5 percent compared to the previous fiscal year’s first quarter primarily due to increased sales at our European distribution business. Segment operating income in the first quarter of fiscal 2025 was $182.1 million, a decrease of 2.9 percent, primarily due to lower operating income at our global specialty logistics business, offset in part by an increase at our European distribution business. On a constant currency basis, International Healthcare Solutions revenue and operating income increased by 8.5 percent and 3.3 percent, respectively.

Recent Company Highlights & Milestones

Cencora completed the acquisition of RCA, a leading management services organization of retina specialists, on January 2, 2025.

Fiscal Year 2025 Expectations

The Company does not provide forward-looking guidance on a GAAP basis as to certain financial information, where the probable significance of the information cannot be determined, is not available or cannot be reasonably estimated. Please refer to the Supplemental Information Regarding Non-GAAP Financial Measures following the tables for additional information.

Fiscal Year 2025 Expectations on an Adjusted (non-GAAP) Basis

On January 2, 2025, Cencora updated its fiscal year 2025 financial guidance only for adjusted diluted EPS following the closing of the RCA acquisition to reflect the expected contribution from RCA and momentum in the U.S. Healthcare Solutions reportable segment.

Cencora is now updating its fiscal year 2025 adjusted diluted EPS guidance to better reflect the continued momentum in the U.S. Healthcare Solutions reportable segment. Additionally, the Company is updating its fiscal year 2025 financial guidance expectations for revenue, operating income and net interest expense to reflect the impact of the RCA acquisition and the continued momentum in the U.S. Healthcare Solutions segment. The Company now expects:

Revenue growth to be in the range of 8 to 10 percent, from the previous range of 7 to 9 percent;
- U.S. Healthcare Solutions revenue growth to be in the range of 9 to 11 percent, from the previous range of 7 to 9 percent;
- International Healthcare Solutions revenue growth to be in the range of 4 to 5 percent, from the previous range of 7 to 9 percent;
Adjusted diluted EPS to be in the range of $15.25 to $15.55, up from the previous range of $15.15 to $15.45 provided on January 2, 2025 and the initial guidance range of $14.80 to $15.10.

Additional expectations now include:

Adjusted consolidated operating income growth to be in the range of 11.5 to 13.5 percent, from the previous range of 5 to 6.5 percent;
- U.S. Healthcare Solutions segment operating income growth to be in the range of 14.5 to 16.5 percent, from the previous range of 5 to 6.5 percent;
- International Healthcare Solutions segment as reported operating income growth to be flat, from the previous range of 5 to 6.5 percent;
  - On a constant currency basis, International Healthcare Solutions segment operating income growth to be approximately 5 percent;
Net interest expense to be in the range of $290 million to $310 million, from the previous range of $150 million to $170 million; and
Weighted average diluted shares outstanding is expected to be under 196 million, from the previous expectation of approximately 196 million.

For additional details regarding updated guidance expectations on a constant currency basis, please refer to our slide presentation for investors.

Dividend Declaration

The Company’s Board of Directors declared a quarterly cash dividend of $0.55 per common share, payable March 3, 2025, to stockholders of record at the close of business on February 14, 2025.

Conference Call & Slide Presentation

The Company will host a conference call to discuss its operating results at 8:30 a.m. ET on February 5, 2025. A slide presentation for investors has also been posted on the Company’s website at investor.cencora.com. Participating in the conference call will be:

Robert P. Mauch, President & Chief Executive Officer
James F. Cleary, Executive Vice President & Chief Financial Officer

The dial-in number for the live call will be (833) 470-1428. From outside the United States and Canada, dial +1 (404) 975-4839. The access code for the call will be 427679. The live call will also be webcast via the Company’s website at investor.cencora.com. Users are encouraged to log on to the webcast approximately 10 minutes in advance of the scheduled start time of the call.

Replays of the call will be made available via telephone and webcast. A replay of the webcast will be posted on investor.cencora.com approximately one hour after the completion of the call and will remain available for one year. The telephone replay will also be available approximately one hour after the completion of the call and will remain available for seven days. To access the telephone replay from within the U.S. and Canada, dial (866) 813-9403. From outside the United States, dial +1 (929) 458-6194. The access code for the replay is 402593.

Upcoming Investor Events

Cencora management will be attending the following investor event in the coming months:

Leerink Partners Global Healthcare Conference, March 10-12, 2025.

Please check the website for updates regarding the timing of the live presentation webcasts, if any, and for replay information.

About Cencora

Cencora is a leading global pharmaceutical solutions organization centered on improving the lives of people and animals around the world. We partner with pharmaceutical innovators across the value chain to facilitate and optimize market access to therapies. Care providers depend on us for the secure, reliable delivery of pharmaceuticals, healthcare products, and solutions. Our 46,000+ worldwide team members contribute to positive health outcomes through the power of our purpose: We are united in our responsibility to create healthier futures. Cencora is ranked #10 on the Fortune 500 and #18 on the Global Fortune 500 with more than $290 billion in annual revenue. Learn more at investor.cencora.com.

Cencora’s Cautionary Note Regarding Forward-Looking Statements

Certain of the statements contained in this press release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Securities Exchange Act”). Words such as “aim,” “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “on track,” “opportunity,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “should,” “strive,” “sustain,” “synergy,” “target,” “will,” “would” and similar expressions are intended to identify such forward-looking statements, but the absence of these words does not mean the statement is not forward-looking. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances and speak only as of the date hereof. These statements are not guarantees of future performance and are based on assumptions and estimates that could prove incorrect or could cause actual results to vary materially from those indicated. A more detailed discussion of the risks and uncertainties that could cause our actual results to differ materially from those indicated is included (i) in the “Risk Factors” and “Management’s Discussion and Analysis” sections in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2024 and elsewhere in that report and (ii) in other reports filed by the Company pursuant to the Securities Exchange Act. The Company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by the federal securities laws.

CENCORA, INC. FINANCIAL SUMMARY (in thousands, except per share data) (unaudited)

	Three Months Ended December 31, 2024			% of Revenue	Three Months Ended December 31, 2023			% of Revenue	% Change
Revenue	$	81,487,060			$	72,252,833			12.8%

Cost of goods sold		78,929,022				69,784,021			13.1%

Gross profit ¹		2,558,038		3.14%		2,468,812		3.42%	3.6%

Operating expenses:
Distribution, selling, and administrative		1,472,055		1.81%		1,398,747		1.94%	5.2%
Depreciation and amortization		278,492		0.34%		270,603		0.37%	2.9%
Litigation and opioid-related expenses (credit), net ²		16,765				(78,917	)
Acquisition-related deal and integration expenses		38,712				21,063
Restructuring and other expenses		45,760				34,441
Total operating expenses		1,851,784		2.27%		1,645,937		2.28%	12.5%

Operating income		706,254		0.87%		822,875		1.14%	(14.2)%

Other loss (income), net ³		57,874				(1,087	)
Interest expense, net		27,933				40,564			(31.1)%

Income before income taxes		620,447		0.76%		783,398		1.08%	(20.8)%

Income tax expense		126,728				180,390

Net income		493,719		0.61%		603,008		0.83%	(18.1)%

Net income attributable to noncontrolling interests		(5,119	)			(1,508	)

Net income attributable to Cencora, Inc.	$	488,600		0.60%	$	601,500		0.83%	(18.8)%

Earnings per share:
Basic	$	2.52			$	3.01			(16.3)%
Diluted	$	2.50			$	2.98			(16.1)%

Weighted average common shares outstanding:
Basic		193,758				200,081			(3.2)%
Diluted		195,188				201,837			(3.3)%

________________________________________

¹	Includes a $22.9 million gain from antitrust litigation settlements, a $7.3 million LIFO credit, and Turkey foreign currency remeasurement expense of $7.2 million in the three months ended December 31, 2024. Includes a $48.2 million gain from antitrust litigation settlements, a $48.4 million LIFO credit, and Turkey foreign currency remeasurement expense of $17.2 million in the three months ended December 31, 2023.
²	The three months ended December 31, 2023 includes a net $92.2 million opioid litigation settlement accrual reduction primarily as a result of the Company’s commitment, which it made in December 2023, to prepay the net present value of a future obligation as permitted under its opioid settlement agreements.
³	Includes a $35.5 million loss on the divestiture of non-core businesses in the three months ended December 31, 2024.

CENCORA, INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share data) (unaudited)

	Three Months Ended December 31, 2024
	Gross Profit			Operating Expenses			Operating Income			Income Before Income Taxes			Income Tax Expense			Net Income Attributable to Cencora			Diluted Earnings Per Share
GAAP	$	2,558,038		$	1,851,784		$	706,254		$	620,447		$	126,728		$	488,600		$	2.50
Gains from antitrust litigation settlements		(22,870	)		—			(22,870	)		(22,870	)		(6,530	)		(16,340	)		(0.08	)
LIFO credit		(7,324	)		—			(7,324	)		(7,324	)		(2,092	)		(5,232	)		(0.03	)
Turkey highly inflationary impact		7,155			—			7,155			7,666			—			7,666			0.04
Acquisition-related intangibles amortization		—			(164,856	)		164,856			164,856			47,075			117,347			0.60
Litigation and opioid-related expenses		—			(16,765	)		16,765			16,765			4,787			11,978			0.06
Acquisition-related deal and integration expenses		—			(38,712	)		38,712			38,712			11,054			27,658			0.14
Restructuring and other expenses		—			(45,760	)		45,760			45,760			13,067			32,693			0.17
Gain on remeasurement of equity investment		—			—			—			(3,480	)		—			(3,480	)		(0.02	)
Loss on divestiture of non-core businesses		—			—			—			35,539			—			35,539			0.18
Other, net		—			—			—			5,411			923			4,488			0.02
Tax reform ¹		—			—			—			15,204			(11,675	)		26,879			0.14
Adjusted Non-GAAP	$	2,534,999		$	1,585,691		$	949,308		$	916,686		$	183,337		$	727,796		$	3.73		²

Adjusted Non-GAAP % change vs. prior year		6.1	%		5.5	%		7.2	%		9.2	%		4.0	%		10.0	%		13.7	%

Percentages of Revenue:	GAAP	Adjusted Non-GAAP
Gross profit	3.14%	3.11%
Operating expenses	2.27%	1.95%
Operating income	0.87%	1.16%

________________________________________

¹	Tax reform includes the foreign currency remeasurement of Swiss deferred tax assets arising from 2020 Swiss tax reform and the amortization of those deferred tax assets.

²	The sum of the components does not equal the total due to rounding.

	Note: For more information related to non-GAAP financial measures, refer to the section titled “Supplemental Information Regarding Non-GAAP Financial Measures” of this release.

CENCORA, INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share data) (unaudited)

	Three Months Ended December 31, 2023
	Gross Profit			Operating Expenses			Operating Income			Income Before Income Taxes			Income Tax Expense			Net Income Attributable to Cencora			Diluted Earnings Per Share
GAAP	$	2,468,812		$	1,645,937		$	822,875		$	783,398		$	180,390		$	601,500		$	2.98
Gains from antitrust litigation settlements		(48,248	)		—			(48,248	)		(48,248	)		(10,456	)		(37,792	)		(0.19	)
LIFO credit		(48,445	)		—			(48,445	)		(48,445	)		(10,498	)		(37,947	)		(0.19	)
Turkey highly inflationary impact		17,226			—			17,226			16,919			—			16,919			0.08
Acquisition-related intangibles amortization		—			(165,724	)		165,724			165,724			35,913			129,376			0.64
Litigation and opioid-related credit, net ¹		—			78,917			(78,917	)		(78,917	)		(12,028	)		(66,889	)		(0.33	)
Acquisition-related deal and integration expenses		—			(21,063	)		21,063			21,063			4,564			16,499			0.08
Restructuring and other expenses		—			(34,441	)		34,441			34,441			7,463			26,978			0.13
Loss on remeasurement of equity investment		—			—			—			10,201			—			10,201			0.05
Other, net		—			—			—			222			(109	)		331			—
Tax reform²		—			—			—			(16,685	)		(18,916	)		2,231			0.01
Adjusted Non-GAAP	$	2,389,345		$	1,503,626		$	885,719		$	839,673		$	176,323		$	661,407		$	3.28		³

Contacts

Bennett S. Murphy
Senior Vice President, Head of Investor Relations and Treasury
bennett.murphy@cencora.com

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