Walgreen Boots Alliance achieves double-digit growth in Q1 2016

Walgreens Boots Alliance has announced its financial results for the first quarter of 2016, during which it generated a net sales total of $29 billion (20.15 billion pounds).

This represented a year-on-year increase of 48.5 percent, while its Q1 net earnings increased 30.6 percent to $1.1 billion. These double-digit improvements show the speed of the company's growth since the merger of Walgreens and Alliance Boots.

These results were in line with the firm's expectations for the period and also reflect the success of the company's cost reduction and efficiency improvement efforts.

Meanwhile, the proposed acquisition of Rite Aid Corporation is progressing as planned and is expected to close in the second half of the year, with this deal set to expand the organisation's commercial capabilities further.

Walgreen Boots Alliance has raised the low end of its earnings guidance for the full 2016 fiscal year following the announcement of these results.

Stefano Pessina, executive vice-chairman and chief executive officer at Walgreen Boots Alliance, said: "Our ongoing work to control costs across Walgreens Boots Alliance and improve adjusted operating income margins is growing earnings overall. Although it is early in the year, we are on track to deliver against our expectations."