Walgreens Boots Alliance (WBA)

Risks

• Global health developments and economic uncertainty resulting from the COVID-19 pandemic have adversely impacted, and may continue to adversely impact, our business, results of operations, cash flows and financial position.
• Reductions in third-party reimbursement levels, from private or governmental agency plans, and potential changes in industry pricing benchmarks for prescription drugs could materially and adversely affect our results of operations.
• A shift in pharmacy mix toward lower margin plans, products and programs could adversely affect our results of operations.
• We derive a significant portion of our sales in the U.S. from prescription drug sales reimbursed by a limited number of pharmacy benefit management companies.
• We could be adversely affected by a decrease in the introduction of new brand name and generic prescription drugs as well as increases in the cost to procure prescription drugs.
• Consolidation and strategic alliances in the healthcare industry could adversely affect our business operations, competitive positioning, financial condition and results of operations.
• Our business results depend on our ability to successfully manage ongoing organizational change and business transformation and achieve cost savings and operating efficiency initiatives.
• Changes in economic conditions could adversely affect consumer buying practices.
• The industries in which we operate are highly competitive and constantly evolving and changes in market dynamics could adversely impact us.
• If we do not successfully develop and maintain a relevant omni-channel experience for our customers, our businesses and results of operations could be adversely impacted.
• If the merchandise and services that we offer fail to meet customer needs, our sales may be adversely affected.
• Our substantial international business operations subject us to a number of operating, economic, political, regulatory and other international business risks.
• Disruption in our global supply chain could negatively impact our businesses.
• We outsource certain business processes to third-party vendors that subject us to risks, including disruptions in business and increased costs.
• We use a single wholesaler of branded and generic pharmaceutical drugs as our primary source of such products.
• Failure to retain and recruit, or failure to manage succession of, key personnel could have an adverse impact on our future performance.
• We may be unable to keep existing store locations or open new locations in desirable places on favorable terms, which could materially and adversely affect our results of operations.
• Our business and operations are subject to risks related to climate change.
• We may not be successful in executing elements of our business strategy, which may have a material adverse impact on our business and financial results.
• Our growth strategy is partially dependent upon our ability to identify and successfully complete acquisitions, joint ventures and other strategic partnerships and alliances.
• The anticipated strategic and financial benefits of our relationship with AmerisourceBergen may not be realized.
• From time to time, we make investments in companies over which we do not have sole control and some of these companies may operate in sectors that differ from our current operations and have different risks.
• A significant disruption in our information technology and computer systems or those of businesses we rely on could harm us.
• We are subject to payment-related and other financial services risks that could increase our operating costs, expose us to fraud or theft, subject us to potential liability and potentially disrupt our business operations.
• We have significant outstanding debt; our debt and associated payment obligations could significantly increase in the future if we incur additional debt and do not retire existing debt.
• As a holding company, we are dependent on funding from our operating subsidiaries to pay dividends and other obligations.
• Our quarterly results may fluctuate significantly based on seasonality and other factors.
• We have a substantial amount of goodwill and other intangible assets which could, in the future, become impaired and result in material non-cash charges to our results of operations.
• We are exposed to risks associated with foreign currency exchange rate fluctuations.
• We could be adversely impacted by changes in assumptions used in calculating pension assets and liabilities.
• Changes in the healthcare industry and regulatory environments may adversely affect our businesses.
• We are exposed to risks related to litigation and other legal proceedings.
• A significant change in, or noncompliance with, governmental regulations and other legal requirements could have a material adverse effect on our reputation and profitability.
• We could be adversely affected by violations of anti-bribery, anti-corruption and/or international trade laws.
• We could be adversely affected by product liability, product recall, personal injury or other health and safety issues.
• We could be subject to adverse changes in tax laws, regulations and interpretations or challenges to our tax positions.
• Certain stockholders may have significant voting influence over matters requiring stockholder approval.
• Conflicts of interest, or the appearance of conflicts of interest, may arise because certain of our directors and officers are also owners or directors of companies we may have dealings with.
• Our certificate of incorporation and bylaws, Delaware law or our agreements with certain stockholders may impede the ability of our stockholders to make changes to our Board or impede a takeover.
• We cannot guarantee that our stock repurchase program will be fully implemented or that it will enhance long-term stockholder value.