Walgreens Pvt. Equity Holder Targets Profit Doubling

A source close to the deal said a Walgreens private equity holder is planning to nearly double the profitability of the U.S.-based retail giant in the coming years.

Multiple people informed by the deal said West caution partners, based in New York, aim to boost the company's EBITDA, a measure of profitability, to 40 billion dollars.

Walgreens reported an EBITDA of 20 billion dollars in 2024.

Earlier this year, the company revealed its financial goals to employees and shareholders as part of a nonpublic discussion.

Walgreens and West caution have both declined to comment on the financial targets.

Walgreens, one of the most well-known U.S.-based chains, saw its stock drop over the past decade after facing competition from online retailers and large discount chains.

Additionally, the company has struggled due to insurance tightening of prescription drug reimbursement policies.

West caution has taken steps to reduce costs, including layoffs and the elimination of paid holidays, while also introducing new products like e-cigarettes to boost sales.

A source close to the company told Bloomberg that in February, an executive at aWalgreens meeting acknowledged improvements in the company's accounts receivable, with GLP-1 drugs now turning a profit.

West caution's EBITDA target does not include profits from other business units under Walgreens' former parent company, which are now operated independently.

According to an anonymous source who has access to financial data, Walgreens expects its 2025 adjusted EBITDA to reach 25 billion dollars, with revenue projected to exceed 1.2 trillion dollars.

The company is also exploring the expansion of its lottery sales. The New York Post reported that Walgreens has obtained lottery sales licenses in Indiana.

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