a and XX%. offset reflecting and tax U.S. increased in you, lower adjusted segment Sales Thank the sales year-over-year International in basis, results of retail our lower with by care on Overall, retail second Adjusted profitability and operational X.X% basis. our U.S. performance health EPS impact pharmacy X.X% constant cost line delivered Healthcare everyone. U.S. U.S. increased rate grew expectations. on $X.XX effective morning, and savings, up of pro sale gains. leaseback currency by X.X% and X.X% forma lower good Mary, improved was of a growth constant currency quarter were a
GAAP effective adjusted $X.X tax MD for deferred international related rate quarter Village second impairment tax goodwill. The loss a of the certain in a included initial net the charge to noncash jurisdictions. lower reflects asset billion recognition
value During fiscal that MD disclosed quarter of our its margin. Village for resulted narrow goodwill carrying we unit impairment reporting our a annual by its the 'XX, value fourth in exceeding fair test
a the multi-specialty impacts in slower-than-expected downward have and we of impact structure. of taken closing productivity of monitoring February, result, changes in patient the attempt rightsize offset and in trends XXX revised panel an from longer-term Management actions business we Village In the XX to recent received These inclusive a As the potential including growth communicated clinics, for by Medicare models. indicators forecast partly reimbursement approximately closely MD of previously impairment. performance been the cost were
Accordingly, attribution of value. to performed forecast, interim carrying of we charge billion On resulted in test billion we $X.X excluded of impairment fair in VillageMD a the that non-GAAP interests. a net of This revised loss $XX.X resulted goodwill recognized goodwill from to below is quarter. this XX% noncontrolling noncontrolling value loss in earnings this prior charge the after-tax unit and Given an noncash reporting basis measures. an net a interest, its
The financial decline performance multiples expectations, a discount the fair was and to and value market peer impairment of continued due income MD's previously the approaches. lower challenged using is market the have to Village of longer-term combination business than which for charge rates. group, determined increased The expected
majority Village of $X the quarter recognized of equity included As also a fiscal company the net VillageMD's value immediately a our by the in carrying the on share equity first reminder, 'XX. of prior during owned gain acquisition MD to interest interest billion assets
and goodwill invest will across businesses on or it is write-off do position we not going impact ability our a have forward. noncash, financial significant to believe This our
we We management have well positive growth. rightsizing the provide the performance in seen 'XX, the Village cost will accelerate recent by believe MD markets During the approach from structure to on as actions platform impacts core of profitability. first VillageMD a focused financial taken future half fiscal for improving as team
million Retail second included quarter also long-lived assets U.S. segment. Pharmacy $XXX The the impairment charge certain noncash a in related to
agile platform U.S., to build be deep-dive concluded system the the disruption manner over it that a new instead time with several last pharmacy capital-efficient much technology of lower capabilities new would exercise As an to in with over operations for modernize a of continuing quarter we months, better the our in and risk. part existing during
the assets. and the result, we charge recognized software against underlying a development As
charge on similar Finally, gain Cencora last $XXX million Cencora value partly the forward adjustments $XXX derivatives a a noncash quarter, shares, by related shares. after-tax of sale to to variable prepaid offset recognized fair we million for on
improved to XX.X% currency on EPS declined and softer a tax on of on adjusted basis U.S. Now care billion $X partly health lower GAAP lower to highlights. U.S. let's the move to billion effective leaseback constant of increased currency compared half in first loss and loss retail Sales offset sale was due fiscal $X rate. a a net X.X% basis. Adjusted constant the 'XX. half a by profitability first in gains, performance
As earlier, offset shares. impairment included billion period gain the noncash sale and first certain for 'XX after-tax included prior partly lawsuits by opioid-related explained on fiscal of a after-tax I year the half charges. of claims billion Cencora charge a $X.X The $X.X
Now let segment. me all basis are cover on figures U.S. leap year for Note comparable Retail a Pharmacy that all adjusted segments.
due sale levels by on lower elevated driven shrink business. year-on-year volume partly partially was services, which declined savings prescription initiatives. gains, higher versus grew and of progress quarter in sales by to brand retail offset AOI lower X.X% contribution Sales prior leaseback the pharmacy from cost and volume, in inflation X.X% retail continued offset XX.X% by a year pharmacy the a decline
Looking ahead, approximately quarter. material we the gains, Sale leaseback we million not headwind in sale net $XXX AOI expense anticipate winding do leaseback going to rent benefit are down forward. and were of an the program, incremental any
mix grew pharmacy. volume ongoing overall growth continued turn prescription brand the driven scripts Pharmacy of year driven better and profit contribution from and line increased to pressure Pharmacy procurement impacted negatively the X.X%, in with now negatively U.S. market to services. impact X.X%, me sales portfolio. Pharmacy overall our mainly Let net quarter than gross impact with redeterminations by pharmacy down reimbursement ionization The market. inflation, excluding Services Medicaid comp savings. by brand Comm vaccines impacts slightly growth. versus performed margin of expectations, prior was adjusted by
retail our Turning next to U.S. business.
a were from quarter, drivers. in declined away Comparable We shift sales consumers continue main with to discretionary channel in see there drug spend as seek X.X% a the environment challenging retail retail X value. the
merchandise to we continue pull impact and back holiday an consumers XXX approximately saw categories. spending, in basis seasonal discretionary from as general sales First, points on of weaker
Second, than as impacted weaker XX season, by respiratory sales a which approximately directly expected, normal we saw points. comparable basis
respiratory down cold showed prior and quarter. X% year data activity flu, to Third-party was the compared
an as as primary serves attachment cough addition, driver, In was flu there sales. the impact lower trip incremental from a cold also
basis led category to points quarter. January the higher headwind declined margin in conditions partly benefits weather from Lastly, performance impacted XX in improvement by year-on-year, Retail a by of approximately program. shrink gross offset
numbers. X.X%. due real segment. currency Germany talk Total wholesale entirely up again International the operating quarter. X.X%. always, Segment adjusted expectations XX%, grew to period with gross inflationary profit down the as in income I lapping the offsetting and segment our increasing next underlying Turning Boots will growth X.X% estate in pressures. sales increased Adjusted ago with the to by constant And gains exceeded in X% was The International U.K. year
performed Personal showing retail well. sales. increased Let's XX.X% U.K. particularly were and now and across of Care, and cover year-on-year locations and in U.K. beauty, Beauty sales destination Comp XX% over Boots sales travel flagship Comp our X.X% pharmacy X.X%. all formats, up sales retail with categories detail. represented and led increased health by growth, Boots.com
Turning to quarter third The positive Healthcare care. U.S. its health EBITDA. of in adjusted first year-on-year was adjusted of improvement next EBITDA. quarter delivered U.S. the significant This consecutive segment
of basis, Second $X.X basis. The on MD quarter a of was prior forma driven Summit billion aided compared XX% increased same $X.X Village full performance a pro billion Health. XX%, growth lives. XX% to sales and of by in pro increased On and risk sales sales increase by acquisition the segment forma clinic grew year the year-on-year quarter,
prior its last year driven year, period. to system Adjusted service of make the quarter million, profitability growth up over compared adjusted by growing $XXX Shields. were on an patients million to cost led as an and was believe and to Village mainly in saw rightsizing panel. of structure number patient partnerships the prior accelerate existing improvement its to the contracts MD year. We Shield EBITDA XX% of versus and EBITDA progress continues robust $XX compared VillageMD increase by XX% health Shield expansion sales the in to new
$XXX flows Turning 'XX. entity by [indiscernible] the first next versus in seasonality. expenditures to Boots to half in fiscal $XXX million related Operating to declined of by $XXX legal matters, fiscal was underlying payments Capital premium impacted roughly cash flow. 'XX plan cash contributions half of million negatively million first and the related
As billion was result, by a $X approximately versus flow down free cash prior year. the
We expect first cash second several the half factors. free half flow compared improvement driven to by
First, 'XX. fiscal we second expect to related the of lower legal half matters in payments
$XXX capital by Second, year-over-year. we reduce remain approximately to expenditure on track million
Third, expect fiscal to working $XXX million we 'XX. improvement deliver capital of during
of during impact benefit majority While we will half. see first benefits of half we some the the the these these initiatives did expect of second
years, prior the in Pharmacy seasonality favorable capital the segments International to U.S. to similar year of the the on the impact second compared Lastly, a working half. underlying and first have believe half we Retail will
now turn guidance. to I will
to in We range updated U.S. Cencora incorporates 'XX and are our adjusted environment, lower fiscal pharmacy offset services and execution the reduced narrowing guidance income, equity The by leaseback rate. $X.XX a adjusted lower a gains retail sale tax EPS challenging to effective $X.XX.
tailwinds, the strong date. pharmacy of in business, services to has delivered execution see results which our we On to initial plan continue our ahead
now we addition, effective our X%. be tax to adjusted under In rate expect
expect challenging in sales continue impact the U.S. we short On backdrop negatively our term. the retail retail to will headwinds, the
expect now sales 'XX fiscal comp We to retail down X%. be approximately
down wind sale-leaseback future. the of no material gains early are the with Second, in the program, expected
shares reduce in Third, the will equity sale block forward. going earnings Cencora February of
our U.S. results, lower pharmacy we in forecast Lastly, compared as market business slightly discussed to initial quarter with the growth first guidance.
guidance the range. an Healthcare the 'XX. the EBITDA half, through to midpoint $XXX progress at be Importantly, segment of adjusted made first over we fiscal million This $XXX U.S. expect to to million continue of increase the segment, based on the in breakeven represents
earnings will we factors half, half. prior in of in additional In second second Next, EPS I the be period. $X.XX provide details on the will lapping adjusted impacting year the
We year-over-year impact expect several factors to comparison. the key
the to the significant is headwind second in wind the First, a half. be program down sale-leaseback of expected
Second, we will and fourth the quarter third lap incentive of fiscal accruals reduction 'XX. in
our of a on segment remains remainder in range. EBITDA on improvement million the guidance the year. midpoint based rate second track of half adjusted year-over-year guidance Healthcare Third, over implies tax achieve higher the The U.S. the updated $XXX to the of
back his year-on-year pass And half within cost pharmacy by we With me U.S. Tim in to retail for finally, driven second let it expect the business, savings initiatives. our that, improvement closing remarks. now