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Rite Aid’s Retail Pharmacy Business Drives Revenue Growth

Rite Aid’s Retail Pharmacy Business Drives Revenue Growth

June 24, 2021 at 03:11PM
by PYMNTS

Rite Aid, which has more than 2,500 retail pharmacy locations throughout 17 states, reported that revenues from continuing operations climbed by 2.2 percent to $6.16 billion.

For the three months ending May 29, 2021, the retailer said that the rise in revenues was fueled by growth in its retail pharmacy segment that was offset, in part, by a decline in its pharmacy services segment.

Rite Aid said retail pharmacy segment revenues from ongoing operations climbed by 5.5 percent from the prior year quarter, fueled by a rise in same-store sales and the inclusion of Bartell’s results.

The retailer posted $1.9 billion in pharmacy services segment revenues, marking a decline of 5.3 percent from the prior-year quarter. Management said that the drop “was primarily the result of a decrease in lives stemming from the loss of a large customer account and a decrease in Medicare Part D membership.”

All in, Rite Aid posted $138.9 million in first-quarter adjusted earnings before interest, taxes, depreciation and Amortization (EBITDA) from continuing operations.

“We are pleased with our first quarter results, as we delivered adjusted EBITDA at the top end of our guidance range and continued our extraordinary efforts to vaccinate Americans against COVID-19,” Rite Aid President and CEO Heyward Donigan said in an earnings announcement. “We have now provided over 6 million COVID-19 vaccines since we began administering shots late last fiscal year.”

In terms of its outlook, Rite Aid said that total revenues are anticipated to range from $25.1 billion to $25.5 billion in fiscal 2022.

The news comes as DoorDash is collaborating with Rite Aid for delivery of everyday needs in as quickly as two hours.

“Providing same delivery through DoorDash provides customers with the option to shop our full assortment of products from the convenience of their smartphones or computers, ensuring they can access Rite Aid anytime and anywhere they need to,” Katie Finnegan, chief customer experience and eCommerce officer at Rite Aid, said in a May announcement.