Rite Aid Corp. Q1 Adj. Loss Narrows; Updates FY24 Outlook

Rite Aid Corp. (RAD) reported that its first quarter net loss widened to $306.72 million from a loss of $110.19 million, prior year. Loss per share was $5.56 compared to a loss of $2.03. Adjusted EBITDA declined to $91.72 million from $100.13 million. Adjusted net loss per share was $0.73 compared to a loss of $0.86. Analysts polled by Thomson Reuters expected the company to report a loss per share of $1.46, for the quarter. Analysts’ estimates typically exclude special items.

First quarter revenues declined to $5.65 billion from $6.01 billion, last year. Analysts on average had estimated $5.32 billion in revenue.

“Our first quarter results were driven by strong script growth, solid pharmacy margins and early progress with our turnaround program, which offset underperformance on front-end sales in the Retail Pharmacy Segment and a higher-than-expected medical loss ratio at Elixir Insurance,” said Elizabeth “Busy” Burr, interim CEO.

For fiscal 2024, the company expects adjusted net loss per share to be between $4.29 and $4.78. Net loss is anticipated to be between approximately $650 million and $680
million. Total revenues are guided to be between $22.6 billion and $23.0 billion in
fiscal 2024.

The company now expects fiscal 2024 capital expenditures to be approximately $175 million, with a focus on investments in technology, prescription file purchases and
distribution center automation.

The company continues to believe that it is on track to achieve adjusted EBITDA growth in fiscal years 2025 and 2026.

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