Q4 2023 Cencora Inc Earnings Call

November 2, 2023

Hello, everyone and thank you for standing by the same core Q4 full year 2023 earnings call will be beginning in just one minutes time, we thank you for your patience and we will begin shortly.

[music].

Operator Emily: Hello, everyone and welcome to the Cencora, Q4 full year 2023 earnings call, my name is Emily and I'll be coordinating your call today, after the presentation there will be the opportunity for any questions, which you can ask by pressing star followed by the number one on your telephone keypad, I'll now turn the call over to our Host Bennett Murphy with Cencora. Please go ahead.

I'll turn the call over to our highest Bennett Murphy with Syncora. Please go ahead.

Bennett Murphy: Good morning, good afternoon, and thank you all for joining us for this conference call to discuss Cencora's fiscal twenty twenty-three fourth quarter and full year results. I am Bennett Murphy, Senior Vice President, Head of Investor Relations and Treasury. Joining me today are Steve Collis, Chairman, President, CEO, and Jim Cleary, Executive Vice President and CFO. On today's call, we'll be discussing non-GAAP financial measures. Reconciliations of these measures to GAAP are provided in today's press release, which is available on our website, investor.cencora.com. We have also posted a slide presentation to accompany today's press release on our investor website. During this conference call, we'll make forward-looking statements about our business and financial expectations on an adjusted non-GAAP basis, including but not limited to EPS, operating income, and income taxes. Forward-looking statements are based on management's current expectations and are subject to uncertainty and change.

Bennett Murphy: Good morning, Good afternoon, and thank you all for joining US for this conference call to discuss second quarter fiscal 2023 fourth quarter and full year results I Am Bennett Murphy Senior Vice President head of Investor Relations and Treasury. Joining me today are Steve Collis, Chairman, President and CEO, and Jim Cleary Executive Vice President and CFO on today's call, we'll be discussing non-GAAP financial measures.

Bennett Murphy: Good morning, Good afternoon, and thank you all for joining US for this conference call to discuss Cencora's fiscal 2023 fourth quarter and full year results, I Am Bennett Murphy Senior Vice President, head of Investor Relations and Treasury, joining me today are Steve Collis, Chairman, President and CEO, and Jim Cleary Executive Vice President and CFO.

Bennett Murphy: On today's call, we'll be discussing non-GAAP financial measures, reconciliations to these measures to GAAP are provided in today's press release, which is available on our website investor.cencora.com, we have also posted a slide presentation to accompany today's press release on our Investor website. During this conference call, we will make forward looking statements about our business and financial expectations on an adjusted non-GAAP basis, including but not limited to EPS operating income and income taxes. These statements are based on management's current expectations and are subject to uncertainty and change for a discussion of key risks and assumptions. We refer you to today's press release, and our SEC filings, including our most recent 10-K. <unk> assumes no obligation to update any forward looking statements and this call cannot be rebroadcast without the permission of the company. Have an opportunity to ask questions. After today's remarks by management, we ask that you limit your questions to one per participant. Going through as many participants as possible in the hour with that I'll turn the call over to Steve.

These measures to GAAP are provided in today's press release, which is available on our website investor dots in Cora dotcom we.

We have also posted a slide presentation to accompany today's press release on our Investor website.

Bennett Murphy: During this conference call, we'll make forward looking statements about our business and financial expectations on an adjusted non-GAAP basis, including but not limited to EPS, operating income and income taxes, Forward looking statements are based on management's current expectations and are subject to uncertainty and change, for a discussion of key risks and assumptions. We refer you to today's press release, and our SEC filings, including our most recent 10-K. <unk> assumes no obligation to update any forward looking statements and this call cannot be rebroadcast without the permission of the company. Have an opportunity to ask questions. After today's remarks by management, we ask that you limit your questions to one per participant. Going through as many participants as possible in the hour with that I'll turn the call over to Steve.

During this conference call, we will make forward looking statements about our business and financial expectations on an adjusted non-GAAP basis, including but not limited to EPS operating income and income taxes.

These statements are based on management's current expectations and are subject to uncertainty and change for a discussion of key risks and assumptions. We refer you to today's press release, and our SEC filings, including our most recent 10-K.

Bennett Murphy: For a discussion of key risks and assumptions, we refer you to today's press release and our SEC filings, including our most recent 10-K. Cencora assumes no obligation to update any forward-looking statements, and this call cannot be rebroadcast without the permission of the company. You have an opportunity to ask questions after today's remarks by management. We ask that you limit your questions to one per participant, in order for us to get through as many participants as possible in the hour. With that, I'll turn the call over to Steve.

Bennett Murphy: For a discussion of key risks and assumptions we refer you to today's press release, and our SEC filings, including our most recent 10-K, Cencora assumes no obligation to update any forward looking statements and this call cannot be rebroadcast without the permission of the company. Have an opportunity to ask questions. After today's remarks by management, we ask that you limit your questions to one per participant. Going through as many participants as possible in the hour with that I'll turn the call over to Steve.

<unk> assumes no obligation to update any forward looking statements and this call cannot be rebroadcast without the permission of the company.

Bennett Murphy: You have an opportunity to ask questions after today's remarks by management, we ask that you limit your questions to one per participant in order for us to get through as many participants as possible in the hour, with that I'll turn the call over to Steve.

Have an opportunity to ask questions. After today's remarks by management, we ask that you limit your questions to one per participant.

Going through as many participants as possible in the hour with that I'll turn the call over to Steve.

Steve Collis: Thank you, Bennett. Good morning, and good afternoon to everyone on the call. Welcome to our fourth and final earnings call for fiscal 2023, and our first earnings call as Cencora. Today, my remarks will focus on the continued execution and success of our business in fiscal 2023, and how our strategy and capabilities as a global healthcare services company position us to further drive value for stakeholders in 2024 and beyond. Fiscal 2023 was a seminal year for Cencora, as we united together under our new, globally inclusive identity, and took key steps to advance our position at the center of healthcare.

Steve Collis: Thank you Bennet, good morning, and good afternoon to everyone on the call, welcome to our fourth and final earnings call for fiscal 2023, and our first earnings call as Cencora. Today my remarks will focus on the continued execution and success of our business in fiscal 2023, and how our strategy and capabilities as a global healthcare services company position us to further drive value for stakeholders in 2024 and beyond. Fiscal 2023 was a seminal year for same Cora as your United together under a new globally inclusive identity and took key steps to advance our position at the center of health care. I am proud of how we continue to deliver strong results through execution by our team members as we capitalized on the strength of our business, while strategically deploying our capital by both returning capital to our shareholders and making meaningful internal and external invest. Formerly <unk> and white oncology, where important investments made this year that extended the services and opportunities we have to continue. To differentiate the solutions, we provide our core customers. Our evolution to St. Cora unites our team members under a name that better reflects our impact on health care as we continue to both on our commercial strengths. We entered 2023 from a position of strength and have continued to bolt on them are maintained throughout the year delivering full year adjusted EPS growth of 9%. Guided by our purpose powered by our foundation in pharmaceutical distribution and differentiated by the breadth of solutions. We provide our partners. We continue to execute on our strategic imperatives to advance our coal business and enhance our capabilities to drive value in the years. To come. This year, we expanded our leadership in specialty by enhancing our suite of services for pharmaceutical partners and adding to the solutions we offer providers. In January we closed on our acquisition of <unk>, which broadened our suite of end to end commercialization service offerings.

Welcome to our fourth and final earnings call for fiscal 'twenty 23, and our first earnings call as second Colorado.

Today, My remarks will focus on the continued execution and success of our business in fiscal 2023, and how our strategy and capabilities as a global healthcare services company position us to further drive value for stakeholders in 'twenty 'twenty four and beyond.

Steve Collis: Fiscal 2023 was a seminal year for Cencora, as we're United together under a new globally inclusive identity and took key steps to advance our position at the center of health care, I am proud of how we continue to deliver strong results through execution by our team members as we capitalized on the strength of our business, while strategically deploying our capital by both returning capital to our shareholders and making meaningful internal and external invest. Formerly <unk> and white oncology, where important investments made this year that extended the services and opportunities we have to continue. To differentiate the solutions, we provide our core customers. Our evolution to St. Cora unites our team members under a name that better reflects our impact on health care as we continue to both on our commercial strengths. We entered 2023 from a position of strength and have continued to bolt on them are maintained throughout the year delivering full year adjusted EPS growth of 9%. Guided by our purpose powered by our foundation in pharmaceutical distribution and differentiated by the breadth of solutions. We provide our partners. We continue to execute on our strategic imperatives to advance our coal business and enhance our capabilities to drive value in the years. To come. This year, we expanded our leadership in specialty by enhancing our suite of services for pharmaceutical partners and adding to the solutions we offer providers. In January we closed on our acquisition of <unk>, which broadened our suite of end to end commercialization service offerings.

Fiscal 2023 was a seminal year for same Cora as your United together under a new globally inclusive identity and took key steps to advance our position at the center of health care.

Steve Collis: I am proud of how we continue to deliver strong results through execution by our team members, as we capitalize on the strength of our business, while strategically deploying our capital by both returning capital to our shareholders and making meaningful internal and external investments. PharmaLex and OneOncology were important investments made this year, that extended the services and opportunities we have to continue to differentiate the solutions we provide our core customers. Our evolution to Cencora unites our team members under a name that better reflects our impact on healthcare as we continue to build on our commercial strengths. We entered 2023 from a position of strength and have continued to build on the momentum throughout the year, delivering full year adjusted EPS growth of 9%.

I am proud of how we continue to deliver strong results through execution by our team members as we capitalized on the strength of our business, while strategically deploying our capital by both returning capital to our shareholders and making meaningful internal and external invest.

Steve Collis: PharmaLex and OneOncology, were important investments made this year, that extended the services and opportunities we have to continue to differentiate the solutions we provide our core customers, our evolution to Cencora unites our team members under a name that better reflects our impact on healthcare as we continue to both on our commercial strengths. We entered 2023 from a position of strength and have continued to bolt on them are maintained throughout the year delivering full year adjusted EPS growth of 9%. Guided by our purpose powered by our foundation in pharmaceutical distribution and differentiated by the breadth of solutions. We provide our partners. We continue to execute on our strategic imperatives to advance our coal business and enhance our capabilities to drive value in the years. To come. This year, we expanded our leadership in specialty by enhancing our suite of services for pharmaceutical partners and adding to the solutions we offer providers. In January we closed on our acquisition of <unk>, which broadened our suite of end to end commercialization service offerings.

Formerly <unk> and white oncology, where important investments made this year that extended the services and opportunities we have to continue.

To differentiate the solutions, we provide our core customers.

Our evolution to St. Cora unites our team members under a name that better reflects our impact on health care as we continue to both on our commercial strengths.

Steve Collis: We entered 2023 from a position of strength and have continued to bolt on the momentum throughout the year, delivering full year adjusted EPS growth of 9%, guided by our purpose, powered by our foundation in pharmaceutical distribution and differentiated by the breadth of solutions we provide our partners, we continue to execute on our strategic imperatives to advance our whole business and enhance our capabilities to drive value in the years to come. This year, we expanded our leadership in specialty by enhancing our suite of services for pharmaceutical partners and adding to the solutions we offer providers. In January we closed on our acquisition of <unk>, which broadened our suite of end to end commercialization service offerings.

We entered 2023 from a position of strength and have continued to bolt on them are maintained throughout the year delivering full year adjusted EPS growth of 9%.

Steve Collis: Guided by our purpose, powered by our foundation in pharmaceutical distribution, and differentiated by the breadth of solutions we provide our partners, we continue to execute on our strategic imperatives to advance our core business and enhance our capabilities to drive value in the years to come. This year, we expanded our leadership in specialty by enhancing our suite of services for pharmaceutical partners and adding to the solutions we offer providers. In January, we closed on our acquisition of PharmaLex, which broadened our suite of end-to-end commercialization service offerings. PharmaLex complements our capabilities in market access strategy, patient access, and adherence, and specialty logistics. The business provides us a global platform of solutions to drive our long-term growth in supporting pharma partners across the development and commercialization journey.

Guided by our purpose powered by our foundation in pharmaceutical distribution and differentiated by the breadth of solutions. We provide our partners. We continue to execute on our strategic imperatives to advance our coal business and enhance our capabilities to drive value in the years.

To come.

Steve Collis: This year, we expanded our leadership in specialty by enhancing our suite of services for pharmaceutical partners and adding to the solutions we offer providers, in January we closed on our acquisition of PharmaLex, which broadened our suite of end to end commercialization service offerings. PharmaLex complements our capabilities and market access strategy. <unk> access and adherence and especially did just sticks. The business provides us a global platform of solutions to drive our long term growth and supporting pharma partners across the development and commercialization journey. On the provider side, we made a minority investment in one oncology, allowing us to deepen our relationships with community oncologists and which represents the next evolution of our long standing leadership in specialty. For the past 20 years, we have been proud to both this leadership in specialty through strategic partnerships and investments to continuously expand the breadth and depth of solutions, we provide to both downstream providers and upstream innovators. The acquisition and investments we completed during fiscal 2023 complement our core business and are a testament to our commitment to advancing our leadership in specialty. We also consistently invest in innovation to strengthen our ability to efficiently and effectively serve our customers. Teams across St. Cora from our sales teams to distribution center operations to consultants in the field actively embrace innovative technology to drive our business forward and support our pharma partners. One example is a premier global specialty logistics business, which continues to drive innovation by adding services to support clinical trial logistics and commercial time and temperature sensitive products through to enhance cryogenic shipping capabilities and expanded use of real time tracking.

This year, we expanded our leadership in specialty by enhancing our suite of services for pharmaceutical partners and adding to the solutions we offer providers.

In January we closed on our acquisition of <unk>, which broadened our suite of end to end commercialization service offerings.

Steve Collis: PharmaLex complements our capabilities in market access strategy, patients access and adherence and especially logistics, the business provides us a global platform of solutions to drive our long term growth and supporting pharma partners across the development and commercialization journey. On the provider side, we made a minority investment in one oncology, allowing us to deepen our relationships with community oncologists and which represents the next evolution of our long standing leadership in specialty. For the past 20 years, we have been proud to both this leadership in specialty through strategic partnerships and investments to continuously expand the breadth and depth of solutions, we provide to both downstream providers and upstream innovators. The acquisition and investments we completed during fiscal 2023 complement our core business and are a testament to our commitment to advancing our leadership in specialty. We also consistently invest in innovation to strengthen our ability to efficiently and effectively serve our customers. Teams across St. Cora from our sales teams to distribution center operations to consultants in the field actively embrace innovative technology to drive our business forward and support our pharma partners. One example is a premier global specialty logistics business, which continues to drive innovation by adding services to support clinical trial logistics and commercial time and temperature sensitive products through to enhance cryogenic shipping capabilities and expanded use of real time tracking.

<unk> complements our capabilities and market access strategy.

<unk> access and adherence and especially did just sticks.

The business provides us a global platform of solutions to drive our long term growth and supporting pharma partners across the development and commercialization journey.

Steve Collis: On the provider side, we made a minority investment in OneOncology, allowing us to deepen our relationships with community oncologists, and which represents the next evolution of our long-standing leadership in specialty. Over the past 20 years, we have been proud to build this leadership in specialty through strategic partnerships and investments to continuously expand the breadth and depth of solutions we provide to both downstream providers and upstream innovators. The acquisition and investments we completed during fiscal 2023 complement our core business and are a testament to our commitment to advancing our leadership in specialty. We also consistently invest in innovation to strengthen our ability to efficiently and effectively serve our customers. Teams across Cencora, from our sales teams to distribution center operations, to consultants in the field, actively embrace innovative technology to drive our business forward and support our pharma partners.

Steve Collis: On the provider side, we made a minority investment in OneOncology, allowing us to deepen our relationships with community oncologists and which represents the next evolution of our long standing leadership in specialty, over the past 20 years, we have been proud to bolt this leadership in specialty through strategic partnerships and investments to continuously expand the breadth and depth of solutions we provide to both downstream providers and upstream innovators. The acquisition and investments we completed during fiscal 2023 complement our core business and are a testament to our commitment to advancing our leadership in specialty. We also consistently invest in innovation to strengthen our ability to efficiently and effectively serve our customers. Teams across St. Cora from our sales teams to distribution center operations to consultants in the field actively embrace innovative technology to drive our business forward and support our pharma partners. One example is a premier global specialty logistics business, which continues to drive innovation by adding services to support clinical trial logistics and commercial time and temperature sensitive products through to enhance cryogenic shipping capabilities and expanded use of real time tracking.

On the provider side, we made a minority investment in one oncology, allowing us to deepen our relationships with community oncologists and which represents the next evolution of our long standing leadership in specialty.

For the past 20 years, we have been proud to both this leadership in specialty through strategic partnerships and investments to continuously expand the breadth and depth of solutions, we provide to both downstream providers and upstream innovators.

The acquisition and investments we completed during fiscal 2023 complement our core business and are a testament to our commitment to advancing our leadership in specialty.

Steve Collis: The acquisition and investments we completed during fiscal 2023 complement our core business and are a testament to our commitment to advancing our leadership in specialty, we also consistently invest in innovation to strengthen our ability to efficiently and effectively serve our customers. Teams across St. Cora from our sales teams to distribution center operations to consultants in the field actively embrace innovative technology to drive our business forward and support our pharma partners. One example is a premier global specialty logistics business, which continues to drive innovation by adding services to support clinical trial logistics and commercial time and temperature sensitive products through to enhance cryogenic shipping capabilities and expanded use of real time tracking.

We also consistently invest in innovation to strengthen our ability to efficiently and effectively serve our customers.

Steve Collis: Teams across Cencora from our sales teams to distribution center operations, to consultants in the field, actively embrace innovative technology to drive our business forward and support our pharma partners, one example is our premier global specialty logistics business, which continues to drive innovation by adding services to support clinical trial logistics and commercial time and temperature sensitive products through to enhance cryogenic shipping capabilities and expanded use of real time tracking for shipments. Technologies like these all vital, allowing us to transport highly specialized products, while giving our customers 24, seven visibility to their critical shipments enabling them to better serve patients.

Teams across St. Cora from our sales teams to distribution center operations to consultants in the field actively embrace innovative technology to drive our business forward and support our pharma partners.

Steve Collis: One example is our premier global specialty logistics business, which continues to drive innovation by adding services to support clinical trial logistics and commercial time and temperature-sensitive products through enhanced cryogenic shipping capabilities and expanded use of real-time tracking for shipments. Technologies like these are vital, allowing us to transport highly specialized products while giving our customers 24/7 visibility to their critical shipments, enabling them to better serve patients. Innovation and the rapidly evolving healthcare landscape necessitate that we remain agile and adaptive to support our customers' needs. As pharmaceutical innovation continues to advance, so too must our capabilities in supporting it. Earlier this year, we opened a new state-of-the-art specialty distribution facility in California.

One example is a premier global specialty logistics business, which continues to drive innovation by adding services to support clinical trial logistics and commercial time and temperature sensitive products through to enhance cryogenic shipping capabilities and expanded use of real time tracking.

Shipments.

Steve Collis: Technologies like these are vital, allowing us to transport highly specialized products, while giving our customers 24/7 visibility to their critical shipments, enabling them to better serve patients, innovation and the rapidly evolving health care landscape necessitate that we remain agile and adaptive to support our customers' needs. As pharmaceutical innovation continues to advance so too must our capabilities in supporting it. Earlier this year, we opened a new state of the art specialty distribution facility in California. As a specialty space continues its rapid growth the new distribution center increases our scale and allows us to better support our customers and partners. Providing efficient and reliable distribution for these complex products. St Chorus customer centric approach prioritizes understanding the challenges our partners face and exploring how we can provide them the solutions and services they need to reach and better serve patients. As pharmacists continues to be recognized for their role as accessible care providers, who can bridge K gaps, particularly in underserved populations. We aim to provide tools and technology to enable them to spend more time with patients. In August we hosted our annual fourth spot conference in partnership with our good neighbor Pharmacy network. Conference brought together thousands of independent community pharmacists and gave them the opportunity to obtain education sessions on the evolving health care environment and latest technology solutions connect and learn from industry peers and celebrate the impact community pharmacies have in health care our. Recently, launching Cora marketplace, which was showcased at the conference.

Technologies like these all vital, allowing us to transport highly specialized products, while giving our customers 24, seven visibility to their critical shipments enabling them to better serve patients.

Innovation and the rapidly evolving health care landscape.

So tight that we remain agile and adaptive to support our customers' needs.

Steve Collis: As pharmaceutical innovation continues to advance, so too must our capabilities in supporting it, earlier this year we opened a new state of the art specialty distribution facility in California, as a specialty space continues its rapid growth the new distribution center increases our scale and allows us to better support our customers and partners by providing efficient and reliable distribution for these complex products. St Chorus customer centric approach prioritizes understanding the challenges our partners face and exploring how we can provide them the solutions and services they need to reach and better serve patients. As pharmacists continues to be recognized for their role as accessible care providers, who can bridge K gaps, particularly in underserved populations. We aim to provide tools and technology to enable them to spend more time with patients. In August we hosted our annual fourth spot conference in partnership with our good neighbor Pharmacy network. Conference brought together thousands of independent community pharmacists and gave them the opportunity to obtain education sessions on the evolving health care environment and latest technology solutions connect and learn from industry peers and celebrate the impact community pharmacies have in health care our. Recently, launching Cora marketplace, which was showcased at the conference.

As pharmaceutical innovation continues to advance so too must our capabilities in supporting it.

Earlier this year, we opened a new state of the art specialty distribution facility in California.

Steve Collis: As the specialty space continues its rapid growth, the new distribution center increases our scale and allows us to better support our customers and partners by providing efficient and reliable distribution for these complex products. Cencora's customer-centric approach prioritizes understanding the challenges our partners face, and exploring how we can provide them the solutions and services they need to reach and better serve patients. As pharmacists continue to be recognized for their role as accessible care providers who can bridge care gaps, particularly in underserved populations, we aim to provide tools and technology to enable them to spend more time with patients. In August, we hosted our annual ThoughtSpot conference in partnership with our Good Neighbor Pharmacy network.

As a specialty space continues its rapid growth the new distribution center increases our scale and allows us to better support our customers and partners.

Providing efficient and reliable distribution for these complex products.

Steve Collis: Cencora's customer centric approach prioritizes, understanding the challenges our partners face and exploring how we can provide them the solutions and services they need to reach and better serve patients, as pharmacists continue to be recognized for their role as accessible care providers, who can bridge care gaps, particularly in underserved populations, we aim to provide tools and technology to enable them to spend more time with patients. In August we hosted our annual fourth spot conference in partnership with our good neighbor Pharmacy network. Conference brought together thousands of independent community pharmacists and gave them the opportunity to obtain education sessions on the evolving health care environment and latest technology solutions connect and learn from industry peers and celebrate the impact community pharmacies have in health care our. Recently, launching Cora marketplace, which was showcased at the conference.

St Chorus customer centric approach prioritizes understanding the challenges our partners face and exploring how we can provide them the solutions and services they need to reach and better serve patients.

As pharmacists continues to be recognized for their role as accessible care providers, who can bridge K gaps, particularly in underserved populations. We aim to provide tools and technology to enable them to spend more time with patients.

Steve Collis: In August we hosted our annual ThoughtSpot conference in partnership with our Good Neighbor Pharmacy network, the conference brought together thousands of independent community pharmacists and gave them the opportunity to obtain education sessions on the evolving health care environment and latest technology solutions, connect and learn from industry peers and celebrate the impact community pharmacies have in health care our. Recently, launching Cora marketplace, which was showcased at the conference.

In August we hosted our annual fourth spot conference in partnership with our good neighbor Pharmacy network.

Steve Collis: The conference brought together thousands of independent community pharmacists and gave them the opportunity to attend education sessions on the evolving healthcare environment and latest technology solutions, connect and learn from industry peers, and celebrate the impact community pharmacies have in healthcare. Our recently launched Cencora Marketplace, which was showcased at the conference, allows independent pharmacies to streamline their ordering process for consumer products in one centralized location. The solutions we provide our pharmacy customers allow them to spend more time caring for their patients and understanding their needs, an important role that has been recognized for the seventh year in a row by J.D. Power, with Good Neighbor Pharmacy ranking number one in customer satisfaction among chain drugstore pharmacies in its 2022 US pharmacy study.

Conference brought together thousands of independent community pharmacists and gave them the opportunity to obtain education sessions on the evolving health care environment and latest technology solutions connect and learn from industry peers and celebrate the impact community pharmacies have in health care our.

Steve Collis: Our recently launching Cora marketplace, which was showcased at the conference, allows independent pharmacies to streamline the ordering process for consumer products in one centralized location, the solutions, we provide our pharmacy customers allow them to spend more time caring for their patients and understanding their needs. An important role that has been recognized for the seventh year in a row by J D power with good neighbor pharmacy ranking number one in customer satisfaction among chain drugstore pharmacies, and it's 2022 U S pharmacy study. Pharmacists or supply of critical raw and hospitals are working in alignment with physicians and nurses to treat patients and one way in which they do this is in keeping medications stopped and up to date for immediate use. Recognizing the time hospital spend on inventory management, our teams look for ways to leverage technology to provide a solution to make this process more seamless. Through RFID tagging hospital pharmacists can quickly identify out of stock or soon to be expired medications, ensuring that patients have access to the medication they need when they need it this. This tagging is conveniently done at our distribution thoughts before medications are delivered to our health system customers. By understanding our customers' needs our team is able to leverage innovation and create solutions to promote efficiency and address their challenges advancing our shared goal of improving patients' quality of Kay. Each day, we are enhancing reach and efficiency in the pharmaceutical supply chain and leveraging the breadth of our global health care services to help our customers navigate increasingly complex environment they face. Driven by customer and patient needs and I'll focus on contributing to prescription outcomes. We have forged innovative partnerships aimed at ensuring a stable supply of essential medications. Earlier this year, we announced a relationship with a nonprofit entity that partners with health care systems to reduce and prevent drug shortages.

Recently, launching Cora marketplace, which was showcased at the conference.

How's independent pharmacies to streamline the ordering process for consumer products in one centralized location.

The solutions, we provide our pharmacy customers allow them to spend more time caring for their patience and understanding their needs.

Steve Collis: An important role that has been recognized for the seventh year in a row by JD Powell with Good Neighbor Pharmacy ranking number one in customer satisfaction among chain drugstore pharmacies in it's 2022 US pharmacy study. Pharmacists or supply of critical raw and hospitals are working in alignment with physicians and nurses to treat patients and one way in which they do this is in keeping medications stopped and up to date for immediate use. Recognizing the time hospital spend on inventory management, our teams look for ways to leverage technology to provide a solution to make this process more seamless. Through RFID tagging hospital pharmacists can quickly identify out of stock or soon to be expired medications, ensuring that patients have access to the medication they need when they need it this. This tagging is conveniently done at our distribution thoughts before medications are delivered to our health system customers. By understanding our customers' needs our team is able to leverage innovation and create solutions to promote efficiency and address their challenges advancing our shared goal of improving patients' quality of Kay. Each day, we are enhancing reach and efficiency in the pharmaceutical supply chain and leveraging the breadth of our global health care services to help our customers navigate increasingly complex environment they face. Driven by customer and patient needs and I'll focus on contributing to prescription outcomes. We have forged innovative partnerships aimed at ensuring a stable supply of essential medications. Earlier this year, we announced a relationship with a nonprofit entity that partners with health care systems to reduce and prevent drug shortages.

An important role that has been recognized for the seventh year in a row by J D power with good neighbor pharmacy ranking number one in customer satisfaction among chain drugstore pharmacies, and it's 2022 U S pharmacy study.

Steve Collis: Pharmacists also play a critical role in hospitals by working in alignment with physicians and nurses to treat patients, and one way in which they do this is in keeping medications stocked and up to date for immediate use. Recognizing the time hospitals spend on inventory management, our teams look for ways to leverage technology to provide a solution to make this process more seamless. Through RFID tagging, hospital pharmacists can quickly identify out-of-stock or soon-to-be-expired medications, ensuring that patients have access to the medication they need, when they need it. This tagging is conveniently done at our distribution sites before medications are delivered to our health system customers. By understanding our customers' needs, our team is able to leverage innovation and create solutions to promote efficiency and address their challenges, advancing our shared goal of improving patients' quality of care.

Pharmacists or supply of critical raw and hospitals are working in alignment with physicians and nurses to treat patients and one way in which they do this is in keeping medications stopped and up to date for immediate use.

Recognizing the time hospital spend on inventory management, our teams look for ways to leverage technology to provide a solution to make this process more seamless.

Steve Collis: Recognizing the time hospitals spend on inventory management, our teams look for ways to leverage technology to provide a solution to make this process more seamless, through RFID tagging hospital pharmacists can quickly identify out of stock or soon to be expired medications, ensuring that patients have access to the medication they need when they need it this. This tagging is conveniently done at our distribution thoughts before medications are delivered to our health system customers. By understanding our customers' needs our team is able to leverage innovation and create solutions to promote efficiency and address their challenges advancing our shared goal of improving patients' quality of Kay. Each day, we are enhancing reach and efficiency in the pharmaceutical supply chain and leveraging the breadth of our global health care services to help our customers navigate increasingly complex environment they face. Driven by customer and patient needs and I'll focus on contributing to prescription outcomes. We have forged innovative partnerships aimed at ensuring a stable supply of essential medications. Earlier this year, we announced a relationship with a nonprofit entity that partners with health care systems to reduce and prevent drug shortages.

Through RFID tagging hospital pharmacists can quickly identify out of stock or soon to be expired medications, ensuring that patients have access to the medication they need when they need it this.

This tagging is conveniently done at our distribution thoughts before medications are delivered to our health system customers.

By understanding our customers' needs our team is able to leverage innovation and create solutions to promote efficiency and address their challenges advancing our shared goal of improving patients' quality of Kay.

Steve Collis: By understanding our customer's needs our team is able to leverage innovation and create solutions to promote efficiency and address their challenges, advancing our shared goal of improving patient's quality of care, each day we are enhancing reach and efficiency in the pharmaceutical supply chain and leveraging the breadth of our global health care services to help our customers navigate increasingly complex environments they face. Driven by customer and patient needs and I'll focus on contributing to prescription outcomes. We have forged innovative partnerships aimed at ensuring a stable supply of essential medications. Earlier this year, we announced a relationship with a nonprofit entity that partners with health care systems to reduce and prevent drug shortages.

Steve Collis: Each day, we are enhancing reach and efficiency in the pharmaceutical supply chain and leveraging the breadth of our global healthcare services to help our customers navigate the increasingly complex environment they face. Driven by customer and patient needs, and our focus on contributing to prescription outcomes, we have forged innovative partnerships aimed at ensuring a stable supply of essential medications. Early this year, we announced a relationship with a nonprofit entity that partners with healthcare systems to reduce and prevent drug shortages. As the exclusive distributor of their contracted products, we provide supply chain support and ensure that their crucial products reach their members in a timely and safe manner. We have also cemented our role at the center of healthcare by building long-term relationships with market-leading customers.

Each day, we are enhancing reach and efficiency in the pharmaceutical supply chain and leveraging the breadth of our global health care services to help our customers navigate increasingly complex environment they face.

Driven by customer and patient needs and I'll focus on contributing to prescription outcomes. We have forged innovative partnerships aimed at ensuring a stable supply of essential medications.

Steve Collis: Driven by customer and patient needs and our focus on contributing to prescription outcomes, we have forged innovative partnerships aimed at ensuring a stable supply of essential medications, earlier this year, we announced a relationship with a nonprofit entity that partners with health care systems to reduce and prevent drug shortages. As the exclusive distributor of their contracted products, we provide supply chain support and ensure that their crucial products reached their members in a timely and safe manner. We have also submitted our role at the center of health care by building long term relationships with market leading customers. We provide our customers with valuable services, ranging from distribution and logistics to consulting to grow their businesses, which in turn supports our own growth. We are creatively resourceful and makes minded as we assess our talents and strengths and plan for future opportunities to create value for all of our stakeholders. Since the beginning of fiscal 2023, we have welcomed four new independent directors with valuable experience and backgrounds that adds to the strength of our board. These new directors at complementary expertise and diverse perspectives to support advancement, both internally and externally as a global health care services leader. Our commitment to elevating talent and advancing Saint <unk> capabilities is pivotal in delivering on our strategic growth initiatives.

Earlier this year, we announced a relationship with a nonprofit entity that partners with health care systems to reduce and prevent drug shortages.

As the exclusive distributor of their contracted products, we provide supply chain support and ensure that they are crucial products reached their members in a timely and safe manner.

We have also submitted our role at the center of health care by building long term relationships with market leading customers.

Steve Collis: We have also cemented our role at the center of healthcare by building long term relationships with market leading customers, we provide our customers with valuable services, ranging from distribution and logistics to consulting to grow their businesses, which in turn supports our own growth. We are creatively resourceful and makes minded as we assess our talents and strengths and plan for future opportunities to create value for all of our stakeholders. Since the beginning of fiscal 2023, we have welcomed four new independent directors with valuable experience and backgrounds that adds to the strength of our board. These new directors at complementary expertise and diverse perspectives to support advancement, both internally and externally as a global health care services leader. Our commitment to elevating talent and advancing Saint <unk> capabilities is pivotal in delivering on our strategic growth initiatives.

Steve Collis: We provide our customers with valuable services, ranging from distribution and logistics to consulting to grow their businesses, which in turn supports our own growth. We are creatively resourceful and next-minded as we assess our talents and strengths and plan for future opportunities to create value for all of our stakeholders. Since the beginning of fiscal 2023, we have welcomed four new independent directors with valuable experience and backgrounds that adds to the strength of our board. These new directors add complementary expertise and diverse perspectives to support our advancement, both internally and externally, as a global healthcare services leader. Our commitment to elevating talent and advancing Cencora's capabilities is pivotal in delivering on our strategic growth initiatives.

We provide our customers with valuable services, ranging from distribution and logistics to consulting to grow their businesses, which in turn supports our own growth.

We are creatively resourceful and makes minded as we assess our talents and strengths and plan for future opportunities to create value for all of our stakeholders.

Steve Collis: We are creatively resourceful and makes minded as we assess our talents and strengths and plan for future opportunities to create value for all of our stakeholders. Since the beginning of fiscal 2023, we have welcomed four new independent directors with valuable experience and backgrounds that adds to the strength of our board. These new directors at complementary expertise and diverse perspectives to support advancement, both internally and externally as a global health care services leader. Our commitment to elevating talent and advancing Saint <unk> capabilities is pivotal in delivering on our strategic growth initiatives.

Steve Collis: We are creatively resourceful and makes minded as we assess our talents and strengths and plan for future opportunities to create value for all of our stakeholders.

Since the beginning of fiscal 2023, we have welcomed four new independent directors with valuable experience and backgrounds that adds to the strength of our board.

Steve Collis: Since the beginning of fiscal 2023, we have welcomed four new independent directors with valuable experience and backgrounds that adds to the strength of our board, these new directors add complementary expertise and diverse perspectives to support advancement, both internally and externally as a global health care services leader.

These new directors at complementary expertise and diverse perspectives to support advancement, both internally and externally as a global health care services leader.

Steve Collis: Our commitment to elevating talent and advancing Cencora's capabilities is pivotal in delivering on our strategic growth initiatives, this year I am proud to announce we have reached 100% dollar for dolla,r pay equity in the United States and set three ESG calls that we believe are relevant to and aligned with our business. Our first goal involved business impact assessments across our footprint to inform our business resiliency planning I'll. Our second goal was focused on female representation and global leadership roles in our third Gulf targeted our team member experience and elevating our culture of inclusion. Coupled with the importance of achieving pay equity in our workplace. We know we must be conscious about culture and footprint to ensure we have the highest caliber talent engage team members and resilient businesses. Sustainability of our operations and collective power of our team members drives our ability to live our purpose strengthens our business and culture and enables our leadership in health care. Saint <unk> long term growth and commitment to creating differentiated value drives our investments internally not people. Our team members are the core of everything we do power, our purpose and drawbaugh execution with a diverse backgrounds and experiences. We are motivating all lead us to foster an environment of inclusion that embraces diversity across the organization. Leveraging unique global views across our enterprise and enhancing ways of working cross efficiency and differentiated customer experience for our partners. We are very proud of our team members, whose dedication and execution powered the successful year, we had in fiscal 2023. As we move into fiscal 2024. Inspired by our ability to unlock new opportunities United as St. Cora and support the continued evolution of health care. As a global organization, United under a new name, we are even better positioned to execute our growth strategy as a leader in pharmaceutical distribution. Implemented by higher margin high growth commercialization solutions. While our purpose and who we are as an organization remain the same. I as well as a 46000 team members are tremendously proud to now be a part of St. Cora.

Our commitment to elevating talent and advancing Saint <unk> capabilities is pivotal in delivering on our strategic growth initiatives.

Steve Collis: This year, I am proud to announce we have reached 100% dollar-for-dollar pay equity in the United States and set three ESG goals that we believe are relevant to and aligned with our business. Our first goal involved business impact assessments across our footprint to inform our business resiliency planning. Our second goal was focused on female representation in global leadership roles, and our third goal targeted our team member experience in elevating our culture of inclusion. Coupled with the importance of achieving pay equity in our workplace, we know we must be conscious of our culture and footprint to ensure we have the highest caliber talent, engaged team members, and resilient businesses. The sustainability of our operations and collective power of our team members drives our ability to live our purpose, strengthens our business and culture, and enables our leadership in healthcare.

This year I am proud to announce we have reached 100% dollar for dollar pay equity in the United States and set three ESG calls that we believe are relevant to and aligned with our business.

Our first goal involved business impact assessments across our footprint to inform our business resiliency planning I'll.

Steve Collis: Our first goal involved business impact assessments across our footprint, to inform our business resiliency planning, our second goal was focused on female representation in global leadership roles ad our third goal targeted our team member experience in elevating our culture of inclusion. Coupled with the importance of achieving pay equity in our workplace. We know we must be conscious about culture and footprint to ensure we have the highest caliber talent engage team members and resilient businesses. Sustainability of our operations and collective power of our team members drives our ability to live our purpose strengthens our business and culture and enables our leadership in health care. Saint <unk> long term growth and commitment to creating differentiated value drives our investments internally not people. Our team members are the core of everything we do power, our purpose and drawbaugh execution with a diverse backgrounds and experiences. We are motivating all lead us to foster an environment of inclusion that embraces diversity across the organization. Leveraging unique global views across our enterprise and enhancing ways of working cross efficiency and differentiated customer experience for our partners. We are very proud of our team members, whose dedication and execution powered the successful year, we had in fiscal 2023. As we move into fiscal 2024. Inspired by our ability to unlock new opportunities United as St. Cora and support the continued evolution of health care. As a global organization, United under a new name, we are even better positioned to execute our growth strategy as a leader in pharmaceutical distribution. Implemented by higher margin high growth commercialization solutions. While our purpose and who we are as an organization remain the same. I as well as a 46000 team members are tremendously proud to now be a part of St. Cora.

Our second goal was focused on female representation and global leadership roles in our third Gulf targeted our team member experience and elevating our culture of inclusion.

Coupled with the importance of achieving pay equity in our workplace. We know we must be conscious about culture and footprint to ensure we have the highest caliber talent engage team members and resilient businesses.

Steve Collis: Coupled with the importance of achieving pay equity in our workplace, we know we must be conscious about culture and footprint to ensure we have the highest caliber talent, engage team members and resilient businesses, the sustainability of our operations and collective power of our team members, drives our ability to live our purpose, strengthens our business and culture and enables our leadership in health care. Saint <unk> long term growth and commitment to creating differentiated value drives our investments internally not people. Our team members are the core of everything we do power, our purpose and drawbaugh execution with a diverse backgrounds and experiences. We are motivating all lead us to foster an environment of inclusion that embraces diversity across the organization. Leveraging unique global views across our enterprise and enhancing ways of working cross efficiency and differentiated customer experience for our partners. We are very proud of our team members, whose dedication and execution powered the successful year, we had in fiscal 2023. As we move into fiscal 2024. Inspired by our ability to unlock new opportunities United as St. Cora and support the continued evolution of health care. As a global organization, United under a new name, we are even better positioned to execute our growth strategy as a leader in pharmaceutical distribution. Implemented by higher margin high growth commercialization solutions. While our purpose and who we are as an organization remain the same. I as well as a 46000 team members are tremendously proud to now be a part of St. Cora.

Sustainability of our operations and collective power of our team members drives our ability to live our purpose strengthens our business and culture and enables our leadership in health care.

Steve Collis: Cencora's long-term growth and commitment to creating differentiated value drives our investments internally in our people. Our team members are the core of everything we do, power our purpose, and drive our execution with their diverse backgrounds and experiences. We are motivating our leaders to foster an environment of inclusion that embraces diversity across the organization. Leveraging unique global views across our enterprise and enhancing ways of working drives efficiency and differentiated customer experience for our partners. We are very proud of our team members, whose dedication and execution powered the successful year we had in fiscal 2023. As we move into fiscal 2024, we are inspired by our ability to unlock new opportunities united as Cencora and support the continued evolution of healthcare.

Saint <unk> long term growth and commitment to creating differentiated value drives our investments internally not people.

Steve Collis: Cencora's long term growth and commitment to creating differentiated value, drives our investments internally and our people, our team members are the core of everything we do, power our purpose and drive our execution with a diverse backgrounds and experiences. We are motivating all leaders to foster an environment of inclusion that embraces diversity across the organization. Leveraging unique global views across our enterprise and enhancing ways of working cross efficiency and differentiated customer experience for our partners. We are very proud of our team members, whose dedication and execution powered the successful year, we had in fiscal 2023. As we move into fiscal 2024. Inspired by our ability to unlock new opportunities United as St. Cora and support the continued evolution of health care. As a global organization, United under a new name, we are even better positioned to execute our growth strategy as a leader in pharmaceutical distribution. Implemented by higher margin high growth commercialization solutions. While our purpose and who we are as an organization remain the same. I as well as a 46000 team members are tremendously proud to now be a part of St. Cora.

Our team members are the core of everything we do power, our purpose and drawbaugh execution with a diverse backgrounds and experiences.

We are motivating all lead us to foster an environment of inclusion that embraces diversity across the organization.

Steve Collis: We are motivating all leaders to foster an environment of inclusion that embraces diversity across the organization, leveraging unique global views across our enterprise and enhancing ways of working cross efficiency and differentiated customer experience for our partners.

Leveraging unique global views across our enterprise and enhancing ways of working cross efficiency and differentiated customer experience for our partners.

We are very proud of our team members, whose dedication and execution powered the successful year, we had in fiscal 2023.

Steve Collis: We are very proud of our team members, whose dedication and execution, powered the successful year we had in fiscal 2023, as we move into fiscal 2024, we are inspired by our ability to unlock new opportunities united as Cencora and support the continued evolution of healthcare. As a global organization, United under a new name, we are even better positioned to execute our growth strategy as a leader in pharmaceutical distribution, complemented by higher margin high growth commercialization solutions. While our purpose and who we are as an organization remain the same. I as well as our 46000 team members are tremendously proud to now be a part of St. Cora.

As we move into fiscal 2024.

Inspired by our ability to unlock new opportunities United as St. Cora and support the continued evolution of health care.

Steve Collis: As a global organization, united under our new name, we are even better positioned to execute our growth strategy as a leader in pharmaceutical distribution, complemented by higher margin, high growth commercialization solutions. While our purpose and who we are as an organization remain the same, I, as well as our 46,000 team members, are tremendously proud to now be a part of Cencora. We are confident in our strategy, and by building on our foundation and established services, we are expanding, diversifying, and enhancing our position as a partner of choice for our customers and partners, both now and into the future. Now, I will turn the call over to Jim for a more in-depth review of our fourth quarter and fiscal year 2023 results, and to discuss our expectations for fiscal 2024. Jim?

As a global organization, United under a new name, we are even better positioned to execute our growth strategy as a leader in pharmaceutical distribution.

Implemented by higher margin high growth commercialization solutions.

While our purpose and who we are as an organization remain the same.

I as well as a 46000 team members are tremendously proud to now be a part of St. Cora.

Steve Collis: We are confident in our strategy and by building on our foundation and establish services, we are expanding, diversifying and enhancing our position as a partner of choice for our customers and partners, both now and into the future, now I will turn the call over to Jim for a more in depth review of our fourth quarter and fiscal year 2023 results and to discuss our expectations for fiscal 2024, Jim.

We are confident in our strategy and by building on our foundation and establish services.

Our expanding diversifying and enhancing our position as a partner of choice for our customers and partners, both now and into the future.

Now I will turn the call over to Jim for a more in depth review of our fourth quarter and fiscal year 2023 results and to discuss our expectations for fiscal 2020 full Jim.

James Cleary: Thanks, Steve. Good morning and good afternoon, everyone. Fiscal 2023 was a milestone year as we became Cencora, uniting under a name and stock ticker that are more meaningful and reflective of the important role that we play at the center of healthcare. Solid underlying business fundamentals, broad-based utilization trends, and execution by our team members allowed us to deliver strong results in the quarter and the year. In fiscal 2023, we continued to do what we do best, now as Cencora, driving strong execution, deepening relationships with our partners, and continuing to invest in our strengths to advance our pharmaceutical-centric strategy and help drive long-term growth. Now turning to our results, and as a reminder, my remarks today will focus on our adjusted non-GAAP financial results, unless otherwise stated. Growth rates and comparisons are made against the prior year, September quarter, and fiscal year.

Jim Cleary: Thanks Steve, good morning and good afternoon everyone, fiscal 2023 was a milestone year as we became Cencora uniting under a name and stock ticker that are more meaningful and reflective of the important role that we play at the center of healthcare. Solid underlying business fundamentals broad based utilization trends and execution by our team members allowed us to. To deliver strong results in the quarter and the year and fiscal 2023, we continue to do what we do best notwithstanding Cora driving strong execution deepening relationships with our partners and continuing to invest in our strengths to advance our pharmaceutical centric strategy and help drive long term growth. Now turning to our results and as a reminder, my remarks today will focus on our adjusted non-GAAP financial results unless otherwise stated growth rates and comparisons are made against the prior year September quarter and fiscal year for a detailed discussion of our GAAP results. Please refer to our earnings press release. Beginning with our fourth quarter results, we finished the quarter with adjusted diluted EPS of $2 86 and <unk>. Kris of 10%, which was driven by operating income growth in both segments and a lower share count as a result of opportunistic share repurchases are. <unk> revenue was $68 $9 billion up nearly 13% with strong revenue growth in the U S Health care solutions segment and also in the International Health care solutions segment in the quarter. Our U S Health care solutions segment continued to see significant growth in sales of low margin G. L. P. One products. And excluding <unk> ones are consolidated revenue growth would have been 10% consolidated gross profit was $2 $3 billion up 9% due to gross profit growth in both segments, particularly in the international Health care Solutions segment, which also benefited from the addition of <unk> consolidated gross profit. <unk> margin was 334% a decrease of 10 basis points similar to last quarter and as expected. The gross profit margin comparison is negatively impacted by two U S health care solutions segment items. First continued volume growth in low gross profit margin <unk> products and second decreased volumes of government owned COVID-19 treatments, which have higher margins.

Jim Cleary: Thanks Steve, good morning and good afternoon everyone, fiscal 2023 was a milestone year as we became Cencora, uniting under a name and stock ticker that are more meaningful and reflective of the important role that we play at the center of healthcare.

2023, with a milestone year as we became syncora uniting under a name and stock ticker that are more meaningful and reflective of the important role that we play at the center of healthcare solid underlying business fundamentals broad based utilization trends and execution by our team members allowed us to.

Jim Cleary: Solid underlying business fundamentals, broad based utilization trends and execution by our team members, allowed us to deliver strong results in the quarter and the year, in fiscal 2023 we continue to do what we do best, now with Cencora, driving strong execution, deepening relationships with our partners and continuing to invest in our strengths to advance our pharmaceutica-centric strategy and help drive long term growth. Now turning to our results and as a reminder, my remarks today will focus on our adjusted non-GAAP financial results unless otherwise stated growth rates and comparisons are made against the prior year September quarter and fiscal year for a detailed discussion of our GAAP results. Please refer to our earnings press release. Beginning with our fourth quarter results, we finished the quarter with adjusted diluted EPS of $2 86 and <unk>. Kris of 10%, which was driven by operating income growth in both segments and a lower share count as a result of opportunistic share repurchases are. <unk> revenue was $68 $9 billion up nearly 13% with strong revenue growth in the U S Health care solutions segment and also in the International Health care solutions segment in the quarter. Our U S Health care solutions segment continued to see significant growth in sales of low margin G. L. P. One products. And excluding <unk> ones are consolidated revenue growth would have been 10% consolidated gross profit was $2 $3 billion up 9% due to gross profit growth in both segments, particularly in the international Health care Solutions segment, which also benefited from the addition of <unk> consolidated gross profit. <unk> margin was 334% a decrease of 10 basis points similar to last quarter and as expected. The gross profit margin comparison is negatively impacted by two U S health care solutions segment items. First continued volume growth in low gross profit margin <unk> products and second decreased volumes of government owned COVID-19 treatments, which have higher margins.

To deliver strong results in the quarter and the year and fiscal 2023, we continue to do what we do best notwithstanding Cora driving strong execution deepening relationships with our partners and continuing to invest in our strengths to advance our pharmaceutical centric strategy and help drive long term growth.

Jim Cleary: Now turning to our results and as a reminder, my remarks today will focus on our adjusted non-GAAP financial results unless otherwise stated, growth rates and comparisons are made against the prior year September quarter and fiscal year, for a detailed discussion of our GAAP results please refer to our earnings press release. Beginning with our fourth quarter results, we finished the quarter with adjusted diluted EPS of $2 86 and <unk>. Kris of 10%, which was driven by operating income growth in both segments and a lower share count as a result of opportunistic share repurchases are. <unk> revenue was $68 $9 billion up nearly 13% with strong revenue growth in the U S Health care solutions segment and also in the International Health care solutions segment in the quarter. Our U S Health care solutions segment continued to see significant growth in sales of low margin G. L. P. One products. And excluding <unk> ones are consolidated revenue growth would have been 10% consolidated gross profit was $2 $3 billion up 9% due to gross profit growth in both segments, particularly in the international Health care Solutions segment, which also benefited from the addition of <unk> consolidated gross profit. <unk> margin was 334% a decrease of 10 basis points similar to last quarter and as expected. The gross profit margin comparison is negatively impacted by two U S health care solutions segment items. First continued volume growth in low gross profit margin <unk> products and second decreased volumes of government owned COVID-19 treatments, which have higher margins.

Now turning to our results and as a reminder, my remarks today will focus on our adjusted non-GAAP financial results unless otherwise stated growth rates and comparisons are made against the prior year September quarter and fiscal year for a detailed discussion of our GAAP results. Please refer to our earnings press release.

James Cleary: For a detailed discussion of our GAAP results, please refer to our earnings press release. Beginning with our Q4 results, we finished the quarter with adjusted diluted EPS of $2.86, an increase of 10%, which was driven by operating income growth in both segments and a lower share count as a result of opportunistic share repurchases. Our consolidated revenue was $68.9 billion, up nearly 13%, with strong revenue growth in the US Healthcare Solutions segment and also in the International Healthcare Solutions segment. In the quarter, our US Healthcare Solutions segment continued to see significant growth in sales of low-margin GLP-1 products, and excluding GLP-1s, our consolidated revenue growth would have been 10%.

Beginning with our fourth quarter results, we finished the quarter with adjusted diluted EPS of $2 86 and <unk>.

Jim Cleary: Beginning with our fourth quarter results, we finished the quarter with adjusted diluted EPS of $2.86 and increase of 10%, which was driven by operating income growth in both segments and a lower share count, as a result of opportunistic share repurchases. Our revenue was $68 $9 billion up nearly 13% with strong revenue growth in the U S Health care solutions segment and also in the International Health care solutions segment in the quarter. Our U S Health care solutions segment continued to see significant growth in sales of low margin G. L. P. One products. And excluding <unk> ones are consolidated revenue growth would have been 10% consolidated gross profit was $2 $3 billion up 9% due to gross profit growth in both segments, particularly in the international Health care Solutions segment, which also benefited from the addition of <unk> consolidated gross profit. <unk> margin was 334% a decrease of 10 basis points similar to last quarter and as expected. The gross profit margin comparison is negatively impacted by two U S health care solutions segment items. First continued volume growth in low gross profit margin <unk> products and second decreased volumes of government owned COVID-19 treatments, which have higher margins.

Kris of 10%, which was driven by operating income growth in both segments and a lower share count as a result of opportunistic share repurchases are.

<unk> revenue was $68 $9 billion up nearly 13% with strong revenue growth in the U S Health care solutions segment and also in the International Health care solutions segment in the quarter. Our U S Health care solutions segment continued to see significant growth in sales of low margin G. L. P. One products.

Jim Cleary: Our consolidated revenue was $68.9 billion dollars, up nearly 13% with strong revenue growth in the US Healthcare solutions segment and also in the International Healthcare solutions segment, in the quarter, our US Healthcare solutions segment continued to see significant growth in sales of low margin GLP-1 products. And excluding <unk> ones are consolidated revenue growth would have been 10%. consolidated gross profit was $2 $3 billion up 9% due to gross profit growth in both segments, particularly in the international Health care Solutions segment, which also benefited from the addition of <unk> consolidated gross profit. <unk> margin was 334% a decrease of 10 basis points similar to last quarter and as expected. The gross profit margin comparison is negatively impacted by two U S health care solutions segment items. First continued volume growth in low gross profit margin <unk> products and second decreased volumes of government owned COVID-19 treatments, which have higher margins.

And excluding <unk> ones are consolidated revenue growth would have been 10% consolidated gross profit was $2 $3 billion up 9% due to gross profit growth in both segments, particularly in the international Health care Solutions segment, which also benefited from the addition of <unk> consolidated gross profit.

James Cleary: Consolidated gross profit was $2.3 billion, up 9%, due to gross profit growth in both segments, particularly in the International Healthcare Solutions segment, which also benefited from the addition of PharmaLex. Consolidated gross profit margin was 3.34%, a decrease of 10 basis points. Similar to last quarter, and as expected, the gross profit margin comparison is negatively impacted by two US Healthcare Solutions segment items. First, continued volume growth in low gross profit margin GLP-1 products, and second, decreased volumes of government-owned COVID treatments, which have higher margins. Consolidated operating expenses were $1.5 billion, up 10%. This growth was largely driven by higher operating expenses in the International Healthcare Solutions segment, including the addition of PharmaLex. Consolidated operating income was $801 million, up 8% compared to the prior year quarter.

Jim Cleary: Consolidated gross profit was $2.3 billion dollars up 9%, due to gross profit growth in both segments, particularly in the international Healthcare Solutions segment, which also benefited from the addition of PharmaLex, consolidated gross profit margin was 3.34%, a decrease of 10 basis points, similar to last quarter and as expected, the gross profit margin comparison is negatively impacted by 2 US healthcare solutions segment items. First, continued volume growth in low gross profit margin GLP-1 products and second decreased volumes of government owned COVID-19 treatments, which have higher margins.

Jim Cleary: Consolidated gross profit was $2.3 billion dollars up 9%, due to gross profit growth in both segments, particularly in the international Healthcare Solutions segment, which also benefited from the addition of PharmaLex, consolidated gross profit margin was 3.34%, a decrease of 10 basis points, similar to last quarter and as expected, the gross profit margin comparison is negatively impacted by 2 US healthcare solutions segment items, first, continued volume growth in low gross profit margin GLP-1 products and second decreased volumes of government owned COVID treatments, which have higher margins.

<unk> margin was 334% a decrease of 10 basis points similar to last quarter and as expected. The gross profit margin comparison is negatively impacted by two U S health care solutions segment items.

Jim Cleary: The gross profit margin comparison is negatively impacted by 2 US healthcare solutions segment items. First, continued volume growth in low gross profit margin GLP-1 products and second decreased volumes of government owned COVID-19 treatments, which have higher margins. <unk> operating expenses were $1.5 billion up 10%. This growth was largely driven by higher operating expenses and the international Health care solutions segment, including the addition of pharma Lex <unk>.

Jim Cleary: The gross profit margin comparison is negatively impacted by 2 US healthcare solutions segment items.

First continued volume growth in low gross profit margin <unk> products and second decreased volumes of government owned COVID-19 treatments, which have higher margins.

Jim Cleary: First, continued volume growth in low gross profit margin GLP-1 products and second decreased volumes of government owned COVID treatments, which have higher margins, consolidated operating expenses were $1.5 billion up 10%, this growth was largely driven by higher operating expenses in the international Health care solutions segment, including the addition of PharmaLex. Consolidated operating income was $801 million up 8% compared to the prior year quarter. The increase in operating income was driven by growth in both segments, which I will discuss in more detail when reviewing segment level results.

Jim Cleary: First, continued volume growth in low gross profit margin GLP-1 products and second decreased volumes of government owned COVID treatments, which have higher margins.

<unk> operating expenses were $1 5 billion up 10%. This growth was largely driven by higher operating expenses and the international Health care solutions segment, including the addition of pharma Lex <unk>.

Jim Cleary: Consolidated operating expenses were $1.5 billion dollars up 10%, this growth was largely driven by higher operating expenses in the international Health care solutions segment, including the addition of PharmaLex, consolidated operating income was $801 million dollars up 8%, compared to the prior year quarter, the increase in operating income was driven by growth in both segments, which I will discuss in more detail when reviewing segment level results.

Jim Cleary: Consolidated operating income was $801 million dollars up 8%, compared to the prior year quarter, the increase in operating income was driven by growth in both segments, which I will discuss in more detail when reviewing segment level results. Moving now to our net interest expense and effective tax rate for the fourth quarter net interest expense was $61 million, an increase of 18% due to an increase in intra period borrowings and related interest rates. Our effective income tax rate was 21, 6% compared to. To 19, 8% in the prior year quarter. Our diluted share count was 203 4 million shares at a 3% decrease compared to the prior year fourth quarter, driven by $1 $2 billion of opportunistic share repurchases completed over the course of fiscal 2023, including $250 million. In August concurrent with the underwritten transaction completed by Walgreens Boots Alliance. This completes the review of our consolidated results now I'll turn to our segment results for the fourth quarter. U S Health care solutions segment revenue was $61 9 billion up 13% versus the fiscal 2022 fourth quarter. This was driven by sales growth across our distribution businesses and the continued volume growth we have seen in low margin <unk> products. Health care solutions segment operating income increased by 9% to $633 million in the quarter. We continued to benefit from our leadership in specialty distribution to both physician practices and health systems. Broad based strong prescription utilization trends and human health distribution and a great fourth quarter for our animal health business. As we said last quarter, we expected one to two cents of contribution related to exclusive COVID-19 product distribution. We ended the quarter with eight cents of contribution in the quarter due to the late summer uptick in COVID-19 cases. Additionally. Additionally, in the month of September we began distributing commercial COVID-19, vaccines, which was an incremental benefit in the quarter. This contribution is comparing to a period, where vaccines, where government managed and being distributed by other parties given the complexities temperature requirements and customer channels associated with COVID-19 vaccines, we captured a larger market share in COVID-19 vaccine distribution than we would have previously. Did having used flu vaccine distribution market share as an initial proxy. That completes my review of the U S Health care solutions segment. I will now turn to our international Health care solutions segment in.

Consolidated operating income was $801 million up 8% compared to the prior year quarter. The increase in operating income was driven by growth in both segments, which I will discuss in more detail when reviewing segment level results.

James Cleary: The increase in operating income was driven by growth in both segments, which I will discuss in more detail when reviewing segment-level results. Moving now to our net interest expense and effective tax rate for Q4. Net interest expense was $61 million, an increase of 18%, due to an increase in intra-period borrowings and related interest rates. Our effective income tax rate was 21.6%, compared to 19.8% in the prior year quarter. Our diluted share count was 203.4 million shares, a 3% decrease compared to the prior year Q4, driven by $1.2 billion of opportunistic share repurchases completed over the course of fiscal 2023, including $250 million in August, concurrent with the underwritten transaction completed by Walgreens Boots Alliance.

Jim Cleary: Moving now to our net interest expense and effective tax rate for the fourth quarter, net interest expense was $61 million dollars, an increase of 18%, due to an increase in intra period borrowings and related interest rates, our effective income tax rate was 21.6% compared to 19.8% in the prior year quarter. Our diluted share count was 203 4 million shares at a 3% decrease compared to the prior year fourth quarter, driven by $1 $2 billion of opportunistic share repurchases completed over the course of fiscal 2023, including $250 million. In August concurrent with the underwritten transaction completed by Walgreens Boots Alliance. This completes the review of our consolidated results now I'll turn to our segment results for the fourth quarter. U S Health care solutions segment revenue was $61 9 billion up 13% versus the fiscal 2022 fourth quarter. This was driven by sales growth across our distribution businesses and the continued volume growth we have seen in low margin <unk> products. Health care solutions segment operating income increased by 9% to $633 million in the quarter. We continued to benefit from our leadership in specialty distribution to both physician practices and health systems. Broad based strong prescription utilization trends and human health distribution and a great fourth quarter for our animal health business. As we said last quarter, we expected one to two cents of contribution related to exclusive COVID-19 product distribution. We ended the quarter with eight cents of contribution in the quarter due to the late summer uptick in COVID-19 cases. Additionally. Additionally, in the month of September we began distributing commercial COVID-19, vaccines, which was an incremental benefit in the quarter. This contribution is comparing to a period, where vaccines, where government managed and being distributed by other parties given the complexities temperature requirements and customer channels associated with COVID-19 vaccines, we captured a larger market share in COVID-19 vaccine distribution than we would have previously. Did having used flu vaccine distribution market share as an initial proxy. That completes my review of the U S Health care solutions segment. I will now turn to our international Health care solutions segment in.

Moving now to our net interest expense and effective tax rate for the fourth quarter net interest expense was $61 million, an increase of 18% due to an increase in intra period borrowings and related interest rates. Our effective income tax rate was 21, 6% compared to.

To 19, 8% in the prior year quarter.

Our diluted share count was 203 4 million shares at a 3% decrease compared to the prior year fourth quarter, driven by $1 $2 billion of opportunistic share repurchases completed over the course of fiscal 2023, including $250 million.

Jim Cleary: Our diluted share count was 203.4 million shares at a 3% decrease compared to the prior year fourth quarter, driven by $1.2 billion dollars of opportunistic share repurchases, completed over the course of fiscal 2023, including $250 million dollars in August concurrent with the underwritten transaction completed by Walgreens Boots Alliance. This completes the review of our consolidated results now I'll turn to our segment results for the fourth quarter. U S Health care solutions segment revenue was $61 9 billion up 13% versus the fiscal 2022 fourth quarter. This was driven by sales growth across our distribution businesses and the continued volume growth we have seen in low margin <unk> products. Health care solutions segment operating income increased by 9% to $633 million in the quarter. We continued to benefit from our leadership in specialty distribution to both physician practices and health systems. Broad based strong prescription utilization trends and human health distribution and a great fourth quarter for our animal health business. As we said last quarter, we expected one to two cents of contribution related to exclusive COVID-19 product distribution. We ended the quarter with eight cents of contribution in the quarter due to the late summer uptick in COVID-19 cases. Additionally. Additionally, in the month of September we began distributing commercial COVID-19, vaccines, which was an incremental benefit in the quarter. This contribution is comparing to a period, where vaccines, where government managed and being distributed by other parties given the complexities temperature requirements and customer channels associated with COVID-19 vaccines, we captured a larger market share in COVID-19 vaccine distribution than we would have previously. Did having used flu vaccine distribution market share as an initial proxy. That completes my review of the U S Health care solutions segment. I will now turn to our international Health care solutions segment in.

In August concurrent with the underwritten transaction completed by Walgreens Boots Alliance.

James Cleary: This completes the review of our consolidated results. Now I'll turn to our segment results for the fourth quarter. US Healthcare Solutions segment revenue was $61.9 billion, up 13% versus the fiscal 2022 fourth quarter. This was driven by sales growth across our distribution businesses and the continued volume growth we have seen in low-margin GLP-1 products. US Healthcare Solutions segment operating income increased by 9% to $633 million. In the quarter, we continued to benefit from our leadership in specialty distribution to both physician practices and health systems, broad-based, strong prescription utilization trends in human health distribution, and a great fourth quarter for our animal health business. As we said last quarter, we expected $0.01 to $0.02 of contribution related to exclusive COVID-19 product distribution.

Jim Cleary: This completes the review of our consolidated results, now I'll turn to our segment results for the fourth quarter. U S Health care solutions segment revenue was $61 9 billion up 13% versus the fiscal 2022 fourth quarter. This was driven by sales growth across our distribution businesses and the continued volume growth we have seen in low margin <unk> products. Health care solutions segment operating income increased by 9% to $633 million in the quarter. We continued to benefit from our leadership in specialty distribution to both physician practices and health systems. Broad based strong prescription utilization trends and human health distribution and a great fourth quarter for our animal health business. As we said last quarter, we expected one to two cents of contribution related to exclusive COVID-19 product distribution. We ended the quarter with eight cents of contribution in the quarter due to the late summer uptick in COVID-19 cases. Additionally. Additionally, in the month of September we began distributing commercial COVID-19, vaccines, which was an incremental benefit in the quarter. This contribution is comparing to a period, where vaccines, where government managed and being distributed by other parties given the complexities temperature requirements and customer channels associated with COVID-19 vaccines, we captured a larger market share in COVID-19 vaccine distribution than we would have previously. Did having used flu vaccine distribution market share as an initial proxy. That completes my review of the U S Health care solutions segment. I will now turn to our international Health care solutions segment in.

Jim Cleary: This completes the review of our consolidated results, now I'll turn to our segment results for the fourth quarter.

This completes the review of our consolidated results now I'll turn to our segment results for the fourth quarter.

Jim Cleary: US Health care solutions segment revenue was $61.9 billion dollars up 13% versus the fiscal 2022 fourth quarter, this was driven by sales growth across our distribution businesses and the continued volume growth we have seen in low margin GLP-1 products. Health care solutions segment operating income increased by 9% to $633 million in the quarter. We continued to benefit from our leadership in specialty distribution to both physician practices and health systems. Broad based strong prescription utilization trends and human health distribution and a great fourth quarter for our animal health business. As we said last quarter, we expected one to two cents of contribution related to exclusive COVID-19 product distribution. We ended the quarter with eight cents of contribution in the quarter due to the late summer uptick in COVID-19 cases. Additionally. Additionally, in the month of September we began distributing commercial COVID-19, vaccines, which was an incremental benefit in the quarter. This contribution is comparing to a period, where vaccines, where government managed and being distributed by other parties given the complexities temperature requirements and customer channels associated with COVID-19 vaccines, we captured a larger market share in COVID-19 vaccine distribution than we would have previously. Did having used flu vaccine distribution market share as an initial proxy. That completes my review of the U S Health care solutions segment. I will now turn to our international Health care solutions segment in.

U S Health care solutions segment revenue was $61 9 billion up 13% versus the fiscal 2022 fourth quarter. This was driven by sales growth across our distribution businesses and the continued volume growth we have seen in low margin <unk> products.

Jim Cleary: U.S. Healthcare solutions segment operating income increased by 9% to $633 million dollars, in the quarter we continued to benefit from our leadership in specialty distribution to both physician practices and health systems, broad based strong prescription utilization trends and human health distribution and a great fourth quarter for our animal health business. As we said last quarter, we expected one to two cents of contribution related to exclusive COVID-19 product distribution. We ended the quarter with eight cents of contribution in the quarter due to the late summer uptick in COVID-19 cases. Additionally. Additionally, in the month of September we began distributing commercial COVID-19, vaccines, which was an incremental benefit in the quarter. This contribution is comparing to a period, where vaccines, where government managed and being distributed by other parties given the complexities temperature requirements and customer channels associated with COVID-19 vaccines, we captured a larger market share in COVID-19 vaccine distribution than we would have previously. Did having used flu vaccine distribution market share as an initial proxy. That completes my review of the U S Health care solutions segment. I will now turn to our international Health care solutions segment in.

Health care solutions segment operating income increased by 9% to $633 million in the quarter. We continued to benefit from our leadership in specialty distribution to both physician practices and health systems.

Broad based strong prescription utilization trends and human health distribution and a great fourth quarter for our animal health business.

Jim Cleary: As we said last quarter, we expected one to two cents of contribution related to exclusive COVID-19 product distribution, we ended the quarter with eight cents of contribution in the quarter due to the late summer uptick in COVID-19 cases, additionally, in the month of September we began distributing commercial COVID-19 vaccines, which was an incremental benefit in the quarter. This contribution is comparing to a period, where vaccines, where government managed and being distributed by other parties given the complexities temperature requirements and customer channels associated with COVID-19 vaccines, we captured a larger market share in COVID-19 vaccine distribution than we would have previously. Did having used flu vaccine distribution market share as an initial proxy. That completes my review of the U S Health care solutions segment. I will now turn to our international Health care solutions segment in.

As we said last quarter, we expected one to two cents of contribution related to exclusive COVID-19 product distribution.

James Cleary: We ended the quarter with $0.08 of contribution in the quarter due to the late summer uptick in COVID-19 cases. Additionally, in the month of September, we began distributing commercial COVID-19 vaccines, which was an incremental benefit in the quarter. This contribution is comparing to a period where vaccines were government managed and being distributed by other parties. Given the complexities, temperature requirements, and customer channels associated with COVID-19 vaccines, we captured a larger market share in COVID vaccine distribution than we would have previously expected, having used flu vaccine distribution market share as an initial proxy. That completes my review of the US Healthcare Solutions segment. I will now turn to our International Healthcare Solutions segment. In the quarter, International Healthcare Solutions revenue was $7.0 billion, an increase of 10% on both an as-reported and constant currency basis.

We ended the quarter with eight cents of contribution in the quarter due to the late summer uptick in COVID-19 cases. Additionally.

Additionally, in the month of September we began distributing commercial COVID-19, vaccines, which was an incremental benefit in the quarter.

Jim Cleary: This contribution is comparing to a period where vaccines were government managed and being distributed by other parties, given the complexities, temperature requirements and customer channels associated with COVID-19 vaccines, we captured a larger market share in COVID vaccine distribution, than we would have previously expected, having used flu vaccine distribution market share as an initial proxy. That completes my review of the U S Health care solutions segment. I will now turn to our international Health care solutions segment in.

This contribution is comparing to a period, where vaccines, where government managed and being distributed by other parties given the complexities temperature requirements and customer channels associated with COVID-19 vaccines, we captured a larger market share in COVID-19 vaccine distribution than we would have previously.

Did having used flu vaccine distribution market share as an initial proxy.

Jim Cleary: That completes my review of the US Health care solutions segment, I will now turn to our international Health care solutions segment. In the quarter International Health care solutions revenue was $7.0 billion, an increase of 10% on both an as reported and constant currency basis.

Jim Cleary: That completes my review of the US Health care solutions segment, I will now turn to our international Health care solutions segment.

That completes my review of the U S Health care solutions segment.

I will now turn to our international Health care solutions segment in.

Jim Cleary: In the quarter International Health care solutions revenue was $7.0 billion dollars, an increase of 10% on both in as reported and constant currency basis, International Health care solutions segment operating income was $168 million dollars up 3% on an as reported basis and up 4% on a constant currency basis. In the quarter, we saw good performance from our global specialty logistics business, which offset a continued degradation of results at alliance healthcare's less than wholly owned subsidiary in Egypt. We recently completed the divestiture of the stake in the objection subsidiary and the results of that business will no longer be consolidated beginning in fiscal 2020 for Egypt. Egypt was a headwind for the international segment throughout the year. Including generating an operating loss in the fourth quarter. And we are pleased to have divested our stake in this non core business. In the quarter, we also had higher bad debt expense and international driven primarily by a reserve established related to a specific pharmacy customer in Europe. That concludes our fiscal fourth quarter discussion now I will turn to a discussion of our full year fiscal 2023 results. Our consolidated revenue was $262 billion up 10% driven by growth in both segments on a constant currency basis consolidated revenue grew 11%. <unk> operating income was $3 $3 billion, an increase of 4% due to the strong performance in our U S Health care solutions segment offset in part by the International Health Care solutions segment, which was negatively impacted by the results of the Egyptian business that I, just mentioned and the effect. Foreign currency translation for much of the year on a constant currency basis consolidated operating income grew 6%. From a segment perspective U S health care solutions had operating income growth of 6% driven by strong prescription utilization trends, including continued growth in specialty and good execution in our businesses. International Health care solutions operating income fell 2% on an as reported basis due to the now divested Egypt <unk> business, Excluding Egypt International Health care solutions operating income would have been up over 3% on a constant currency basis. The segment delivered 7% operating income. Growth.

In the quarter International Health care solutions revenue was $7.0 billion, an increase of 10% on both an as reported and constant currency basis.

James Cleary: International Healthcare Solutions segment operating income was $168 million, up 3% on an as-reported basis and up 4% on a constant currency basis. In the quarter, we saw good performance from our global specialty logistics business, which offset a continued degradation of results at Alliance Healthcare's less than wholly owned subsidiary in Egypt. We recently completed the divestiture of the stake in the Egyptian subsidiary, and the results of that business will no longer be consolidated beginning in fiscal 2024. Egypt was a headwind for the international segment throughout the year, including generating an operating loss in the fourth quarter, and we are pleased to have divested our stake in this non-core business. In the quarter, we also had higher bad debt expense in international, driven primarily by a reserve established related to a specific pharmacy customer in Europe.

International Health care solutions segment operating income was $168 million up 3% on an as reported basis and up 4% on a constant currency basis.

In the quarter, we saw good performance from our global specialty logistics business, which offset a continued degradation of results at alliance healthcare's less than wholly owned subsidiary in Egypt.

Jim Cleary: In the quarter, we saw good performance from our global specialty logistics business, which offset a continued degradation of results at Alliance Healthcare's less than wholly owned subsidiary in Egypt, we recently completed the divestiture of the stake in the Egiptian subsidiary and the results of that business will no longer be consolidated beginning in fiscal 2024. Egypt. Egypt was a headwind for the international segment throughout the year. Including generating an operating loss in the fourth quarter. And we are pleased to have divested our stake in this non core business. In the quarter, we also had higher bad debt expense and international driven primarily by a reserve established related to a specific pharmacy customer in Europe. That concludes our fiscal fourth quarter discussion now I will turn to a discussion of our full year fiscal 2023 results. Our consolidated revenue was $262 billion up 10% driven by growth in both segments on a constant currency basis consolidated revenue grew 11%. <unk> operating income was $3 $3 billion, an increase of 4% due to the strong performance in our U S Health care solutions segment offset in part by the International Health Care solutions segment, which was negatively impacted by the results of the Egyptian business that I, just mentioned and the effect. Foreign currency translation for much of the year on a constant currency basis consolidated operating income grew 6%. From a segment perspective U S health care solutions had operating income growth of 6% driven by strong prescription utilization trends, including continued growth in specialty and good execution in our businesses. International Health care solutions operating income fell 2% on an as reported basis due to the now divested Egypt <unk> business, Excluding Egypt International Health care solutions operating income would have been up over 3% on a constant currency basis. The segment delivered 7% operating income. Growth.

We recently completed the divestiture of the stake in the objection subsidiary and the results of that business will no longer be consolidated beginning in fiscal 2020 for Egypt.

Egypt was a headwind for the international segment throughout the year.

Jim Cleary: Egypt was a headwind for the international segment throughout the year, including generating an operating loss in the fourth quarter and we are pleased to have divested our stake in this non-core business, in the quarter we also had higher bad debt expense in international, driven primarily by a reserve established related to a specific pharmacy customer in Europe, that concludes our fiscal, fourth quarter discussion, now I will turn to a discussion of our full year fiscal 2023 results. Our consolidated revenue was $262 billion up 10% driven by growth in both segments on a constant currency basis consolidated revenue grew 11%. <unk> operating income was $3 $3 billion, an increase of 4% due to the strong performance in our U S Health care solutions segment offset in part by the International Health Care solutions segment, which was negatively impacted by the results of the Egyptian business that I, just mentioned and the effect. Foreign currency translation for much of the year on a constant currency basis consolidated operating income grew 6%. From a segment perspective U S health care solutions had operating income growth of 6% driven by strong prescription utilization trends, including continued growth in specialty and good execution in our businesses. International Health care solutions operating income fell 2% on an as reported basis due to the now divested Egypt <unk> business, Excluding Egypt International Health care solutions operating income would have been up over 3% on a constant currency basis. The segment delivered 7% operating income. Growth.

Including generating an operating loss in the fourth quarter.

And we are pleased to have divested our stake in this non core business.

In the quarter, we also had higher bad debt expense and international driven primarily by a reserve established related to a specific pharmacy customer in Europe.

James Cleary: That concludes our fiscal Q4 discussion. Now I will turn to a discussion of our full-year fiscal 2023 results. Our consolidated revenue was $262 billion, up 10%, driven by growth in both segments. On a constant currency basis, consolidated revenue grew 11%. Consolidated operating income was $3.3 billion, an increase of 4% due to the strong performance in our US Healthcare Solutions segment, offset in part by the International Healthcare Solutions segment, which was negatively impacted by the results of the Egyptian business that I just mentioned and the effects of foreign currency translation for much of the year. On a constant currency basis, consolidated operating income grew 6%.

That concludes our fiscal fourth quarter discussion now I will turn to a discussion of our full year fiscal 2023 results.

Our consolidated revenue was $262 billion up 10% driven by growth in both segments on a constant currency basis consolidated revenue grew 11%.

Jim Cleary: Our consolidated revenue was $262 billion dollars up 10%, driven by growth in both segments, on a constant currency basis consolidated revenue grew 11%, consolidated operating income was $3.3 billion dollars, an increase of 4% due to the strong performance in our US Healthcare solutions segment, offset in part by the International Health Care solutions segment, which was negatively impacted by the results of the Egyptian business that I, just mentioned and the effects of Foreign currency translation for much of the year. On a constant currency basis consolidated operating income grew 6%. From a segment perspective U S health care solutions had operating income growth of 6% driven by strong prescription utilization trends, including continued growth in specialty and good execution in our businesses. International Health care solutions operating income fell 2% on an as reported basis due to the now divested Egypt <unk> business, Excluding Egypt International Health care solutions operating income would have been up over 3% on a constant currency basis. The segment delivered 7% operating income. Growth.

<unk> operating income was $3 $3 billion, an increase of 4% due to the strong performance in our U S Health care solutions segment offset in part by the International Health Care solutions segment, which was negatively impacted by the results of the Egyptian business that I, just mentioned and the effect.

Foreign currency translation for much of the year on a constant currency basis consolidated operating income grew 6%.

James Cleary: From a segment perspective, US Healthcare Solutions had operating income growth of 6%, driven by strong prescription utilization trends, including continued growth in specialty, and good execution in our businesses. International Healthcare Solutions operating income fell 2% on an as-reported basis due to the now divested Egyptian business. Excluding Egypt, International Healthcare Solutions operating income would have been up over 3%. On a constant currency basis, this segment delivered 7% operating income growth. In fiscal 2023, we had $0.38 of contribution of adjusted EPS related to exclusive COVID-19 product distribution on a consolidated basis, compared to $0.72 in fiscal 2022. At the segment level, we had $0.31 of contribution to adjusted EPS in the US Healthcare Solutions segment and $0.07 in the International Healthcare Solutions segment in fiscal 2023. Turning now to interest expense.

From a segment perspective U S health care solutions had operating income growth of 6% driven by strong prescription utilization trends, including continued growth in specialty and good execution in our businesses.

Jim Cleary: On a constant currency basis, consolidated operating income grew 6%, from a segment perspective, US healthcare solutions had operating income growth of 6%, driven by strong prescription utilization trends, including continued growth in specialty and good execution in our businesses, International Health care solutions operating income fell 2% on an as reported basis due to the now divested Egyptian business, Excluding Egypt International Health care solutions operating income would have been up over 3% on a constant currency basis this segment delivered 7% operating income growth.

International Health care solutions operating income fell 2% on an as reported basis due to the now divested Egypt <unk> business, Excluding Egypt International Health care solutions operating income would have been up over 3% on a constant currency basis. The segment delivered 7% operating income.

Jim Cleary: International Health care solutions operating income fell 2%, on an as reported basis, due to the now divested Egyptian business, Excluding Egypt International Health care solutions operating income would have been up over 3% on a constant currency basis this segment delivered 7% operating income growth. At the segment level, we had 31 sensitive contribution to adjusted EPS in the U S Health care solutions segment and seven cents in the International Health care solutions segment in fiscal 2023.

Jim Cleary: International Health care solutions operating income fell 2%, on an as reported basis, due to the now divested Egyptian business, excluding Egypt International Health care solutions operating income would have been up over 3% on a constant currency basis this segment delivered 7% operating income growth.

Growth.

In fiscal 2023, we had 38 cents of contribution of adjusted EPS related to exclusive COVID-19 product distribution on a consolidated basis compared to 72 cents in fiscal 2022.

Jim Cleary: In fiscal 2023, we had 38 cents of contribution of adjusted EPS, related to exclusive COVID-19 product distribution on a consolidated basis, compared to 72 cents in fiscal 2022, at the segment level, we had 31 cents of contribution to adjusted EPS in the US Health care solutions segment and 7 cents in the International Health care solutions segment in fiscal 2023. Turning now to interest expense in fiscal 2023, net interest expense was $229 million, an increase of 9% as a result of higher intra period borrowings for parts of the year due to timing of capital deployment debt repayment and cash flows as well as higher average interest rates on intra period borrowings. Regarding taxes. The adjusted effective tax rate for fiscal 2023 was 23% compared to 26% in fiscal 2022. Turning now to EPS, our full year adjusted diluted EPS was $11.99, an increase of 9% driven by our strong operating income growth and strategic capital deployment. Finally in fiscal 2023, we generated $3 $1 billion of adjusted free cash flow and ended the year with a cash balance of $2 $6 billion. We continue to be a strong free cash flow generator and have a balanced approach to capital deployment. In addition to our internal capital expenditures are at. With this in a pharma Lex and our investment in one oncology in fiscal 2023. This year, we also repurchased $1 $2 billion of our shares Opportunistically and just this morning announced that our board of directors has approved a 5% increase in our quarterly dividend the dividend increase demonstrates our commitment. Maintaining a reasonable growing dividend and this was our 19th consecutive year of increasing our dividend. Turning now to discuss our fiscal 2024 guidance expectations. As a reminder, we do not provide forward looking guidance on a GAAP basis. So the following metrics are provided on an adjusted non-GAAP basis I will also provide certain guidance metrics on a constant currency basis. We have also provided a detailed overview of guidance metrics on slides 11, and 12 of our earnings presentation. First starting with EPS in fiscal 2024, we are guiding for adjusted diluted EPS to be in the range of $12 70 to $13 representing growth of 6% to 8% driven by growth in each segment and contributions from capital. Deployment. Before I detailed the building blocks of our solid EPS growth for fiscal 2024, I want to spend some time discussing our approach to COVID-19 contributions in the coming year. Over the past several years, we recognized benefits related to our role as the exclusive distributor of a number of COVID-19 products, which we have normalized for by providing ex COVID-19 numbers.

At the segment level, we had 31 sensitive contribution to adjusted EPS in the U S Health care solutions segment and seven cents in the International Health care solutions segment in fiscal 2023.

Turning now to interest expense in fiscal 2023, net interest expense was $229 million, an increase of 9% as a result of higher intra period borrowings for parts of the year due to timing of capital deployment debt repayment and cash flows as well as higher average interest rates on intra period borrowings.

James Cleary: In fiscal 2023, net interest expense was $229 million, an increase of 9% as a result of higher intra-period borrowings for parts of the year due to timing of capital deployment, debt repayment, and cash flows, as well as higher average interest rates on intra-period borrowings. Regarding taxes, our adjusted effective tax rate for fiscal 2023 was 20.3%, compared to 20.6% in fiscal 2022. Turning now to EPS. Our full year adjusted diluted EPS was $11.99, an increase of 9%, driven by our strong operating income growth and strategic capital deployment. Finally, in fiscal 2023, we generated $3.1 billion of adjusted free cash flow and ended the year with a cash balance of $2.6 billion.

Jim Cleary: Turning now to interest expense, in fiscal 2023, net interest expense was $229 million dollars, an increase of 9% as a result of higher intra period borrowings for parts of the year due to timing of capital deployment debt repayment and cash flows, as well as higher average interest rates on intra period borrowings. Regarding taxes. The adjusted effective tax rate for fiscal 2023 was 23% compared to 26% in fiscal 2022. Turning now to EPS, our full year adjusted diluted EPS was $11.99, an increase of 9% driven by our strong operating income growth and strategic capital deployment. Finally in fiscal 2023, we generated $3 $1 billion of adjusted free cash flow and ended the year with a cash balance of $2 $6 billion. We continue to be a strong free cash flow generator and have a balanced approach to capital deployment. In addition to our internal capital expenditures are at. With this in a pharma Lex and our investment in one oncology in fiscal 2023. This year, we also repurchased $1 $2 billion of our shares Opportunistically and just this morning announced that our board of directors has approved a 5% increase in our quarterly dividend the dividend increase demonstrates our commitment. Maintaining a reasonable growing dividend and this was our 19th consecutive year of increasing our dividend. Turning now to discuss our fiscal 2024 guidance expectations. As a reminder, we do not provide forward looking guidance on a GAAP basis. So the following metrics are provided on an adjusted non-GAAP basis I will also provide certain guidance metrics on a constant currency basis. We have also provided a detailed overview of guidance metrics on slides 11, and 12 of our earnings presentation. First starting with EPS in fiscal 2024, we are guiding for adjusted diluted EPS to be in the range of $12 70 to $13 representing growth of 6% to 8% driven by growth in each segment and contributions from capital. Deployment. Before I detailed the building blocks of our solid EPS growth for fiscal 2024, I want to spend some time discussing our approach to COVID-19 contributions in the coming year. Over the past several years, we recognized benefits related to our role as the exclusive distributor of a number of COVID-19 products, which we have normalized for by providing ex COVID-19 numbers.

Regarding taxes.

The adjusted effective tax rate for fiscal 2023 was 23% compared to 26% in fiscal 2022.

Jim Cleary: Regarding taxes, our adjusted effective tax rate for fiscal 2023 was 20.3% compared to 20.6% in fiscal 2022. Turning now to EPS, our full year adjusted diluted EPS was $11.99, an increase of 9% driven by our strong operating income growth and strategic capital deployment. Finally in fiscal 2023, we generated $3 $1 billion of adjusted free cash flow and ended the year with a cash balance of $2 $6 billion. We continue to be a strong free cash flow generator and have a balanced approach to capital deployment. In addition to our internal capital expenditures are at. With this in a pharma Lex and our investment in one oncology in fiscal 2023. This year, we also repurchased $1 $2 billion of our shares Opportunistically and just this morning announced that our board of directors has approved a 5% increase in our quarterly dividend the dividend increase demonstrates our commitment. Maintaining a reasonable growing dividend and this was our 19th consecutive year of increasing our dividend. Turning now to discuss our fiscal 2024 guidance expectations. As a reminder, we do not provide forward looking guidance on a GAAP basis. So the following metrics are provided on an adjusted non-GAAP basis I will also provide certain guidance metrics on a constant currency basis. We have also provided a detailed overview of guidance metrics on slides 11, and 12 of our earnings presentation. First starting with EPS in fiscal 2024, we are guiding for adjusted diluted EPS to be in the range of $12 70 to $13 representing growth of 6% to 8% driven by growth in each segment and contributions from capital. Deployment. Before I detailed the building blocks of our solid EPS growth for fiscal 2024, I want to spend some time discussing our approach to COVID-19 contributions in the coming year. Over the past several years, we recognized benefits related to our role as the exclusive distributor of a number of COVID-19 products, which we have normalized for by providing ex COVID-19 numbers.

Jim Cleary: Regarding taxes, our adjusted effective tax rate for fiscal 2023 was 20.3% compared to 20.6% in fiscal 2022.

Turning now to EPS, our full year adjusted diluted EPS was $11.99, an increase of 9% driven by our strong operating income growth and strategic capital deployment.

Jim Cleary: Turning now to EPS, our full year adjusted diluted EPS was $11.99, an increase of 9%, driven by our strong operating income growth and strategic capital deployment, finally in fiscal 2023, we generated $3.1 billion dollars of adjusted free cash flow and ended the year with a cash balance of $2.6 billion dollars, we continue to be a strong free cash flow generator and have a balanced approach to capital deployment. In addition to our internal capital expenditures are at. With this in a pharma Lex and our investment in one oncology in fiscal 2023. This year, we also repurchased $1 $2 billion of our shares Opportunistically and just this morning announced that our board of directors has approved a 5% increase in our quarterly dividend the dividend increase demonstrates our commitment. Maintaining a reasonable growing dividend and this was our 19th consecutive year of increasing our dividend. Turning now to discuss our fiscal 2024 guidance expectations. As a reminder, we do not provide forward looking guidance on a GAAP basis. So the following metrics are provided on an adjusted non-GAAP basis I will also provide certain guidance metrics on a constant currency basis. We have also provided a detailed overview of guidance metrics on slides 11, and 12 of our earnings presentation. First starting with EPS in fiscal 2024, we are guiding for adjusted diluted EPS to be in the range of $12 70 to $13 representing growth of 6% to 8% driven by growth in each segment and contributions from capital. Deployment. Before I detailed the building blocks of our solid EPS growth for fiscal 2024, I want to spend some time discussing our approach to COVID-19 contributions in the coming year. Over the past several years, we recognized benefits related to our role as the exclusive distributor of a number of COVID-19 products, which we have normalized for by providing ex COVID-19 numbers.

Finally in fiscal 2023, we generated $3 $1 billion of adjusted free cash flow and ended the year with a cash balance of $2 $6 billion. We continue to be a strong free cash flow generator and have a balanced approach to capital deployment. In addition to our internal capital expenditures are at.

James Cleary: We continue to be a strong free cash flow generator and have a balanced approach to capital deployment. In addition to our internal capital expenditures, our acquisition of PharmaLex, and our investment in OneOncology in fiscal 2023, this year, we also repurchased $1.2 billion of our shares opportunistically, and just this morning announced that our board of directors has approved a 5% increase in our quarterly dividend. The dividend increase demonstrates our commitment to maintaining a reasonable growing dividend, and this is our nineteenth consecutive year of increasing our dividend. Turning now to discuss our fiscal 2024 guidance expectations. As a reminder, we do not provide forward-looking guidance on a GAAP basis, so the following metrics are provided on an adjusted non-GAAP basis. I will also provide certain guidance metrics on a constant currency basis....

Jim Cleary: In addition to our internal capital expenditures, our acquisition of PharmaLex and our investment in OneOncology in fiscal 2023, this year, we also repurchased $1.2 billion dollars of our shares, opportunistically and just this morning announced that our board of directors has approved a 5% increase in our quarterly dividend, the dividend increase demonstrates our commitment to maintaining a reasonable growing dividend and this is our 19th consecutive year of increasing our dividend. Turning now to discuss our fiscal 2024 guidance expectations. As a reminder, we do not provide forward looking guidance on a GAAP basis. So the following metrics are provided on an adjusted non-GAAP basis I will also provide certain guidance metrics on a constant currency basis. We have also provided a detailed overview of guidance metrics on slides 11, and 12 of our earnings presentation. First starting with EPS in fiscal 2024, we are guiding for adjusted diluted EPS to be in the range of $12 70 to $13 representing growth of 6% to 8% driven by growth in each segment and contributions from capital. Deployment. Before I detailed the building blocks of our solid EPS growth for fiscal 2024, I want to spend some time discussing our approach to COVID-19 contributions in the coming year. Over the past several years, we recognized benefits related to our role as the exclusive distributor of a number of COVID-19 products, which we have normalized for by providing ex COVID-19 numbers.

With this in a pharma Lex and our investment in one oncology in fiscal 2023. This year, we also repurchased $1 $2 billion of our shares Opportunistically and just this morning announced that our board of directors has approved a 5% increase in our quarterly dividend the dividend increase demonstrates our commitment.

Maintaining a reasonable growing dividend and this was our 19th consecutive year of increasing our dividend.

Turning now to discuss our fiscal 2024 guidance expectations. As a reminder, we do not provide forward looking guidance on a GAAP basis. So the following metrics are provided on an adjusted non-GAAP basis I will also provide certain guidance metrics on a constant currency basis.

Jim Cleary: Turning now to discuss our fiscal 2024 guidance expectations, as a reminder, we do not provide forward looking guidance on a GAAP basis so the following metrics are provided on an adjusted non-GAAP basis, I will also provide certain guidance metrics on a constant currency basis, we have also provided a detailed overview of guidance metrics on slides 11, and 12 of our earnings presentation. First starting with EPS in fiscal 2024, we are guiding for adjusted diluted EPS to be in the range of $12 70 to $13 representing growth of 6% to 8% driven by growth in each segment and contributions from capital. Deployment. Before I detailed the building blocks of our solid EPS growth for fiscal 2024, I want to spend some time discussing our approach to COVID-19 contributions in the coming year. Over the past several years, we recognized benefits related to our role as the exclusive distributor of a number of COVID-19 products, which we have normalized for by providing ex COVID-19 numbers.

James Cleary: We have also provided a detailed overview of guidance metrics on slides 11 and 12 of our earnings presentation. First, starting with EPS, in fiscal 2024, we are guiding for adjusted diluted EPS to be in the range of $12.70 to $13, representing growth of 6% to 8%, driven by growth in each segment and contributions from capital deployment. Before I detail the building blocks of our solid EPS growth for fiscal 2024, I want to spend some time discussing our approach to COVID-19 contributions in the coming year. Over the past several years, we've recognized benefits related to our role as the exclusive distributor of a number of COVID-19 products, which we have normalized for by providing ex-COVID numbers.

We have also provided a detailed overview of guidance metrics on slides 11, and 12 of our earnings presentation.

First starting with EPS in fiscal 2024, we are guiding for adjusted diluted EPS to be in the range of $12 70 to $13 representing growth of 6% to 8% driven by growth in each segment and contributions from capital.

Jim Cleary: First, starting with EPS, in fiscal 2024, we are guiding for adjusted diluted EPS to be in the range of $12.70 to $13 dollars, representing growth of 6% to 8%, driven by growth in each segment and contributions from capital deployment, before I detailed the building blocks of our solid EPS growth for fiscal 2024, I want to spend some time discussing our approach to COVID-19 contributions in the coming year. Over the past several years, we recognized benefits related to our role as the exclusive distributor of a number of COVID-19 products, which we have normalized for by providing ex COVID-19 numbers.

Deployment.

Before I detailed the building blocks of our solid EPS growth for fiscal 2024, I want to spend some time discussing our approach to COVID-19 contributions in the coming year.

Jim Cleary: Over the past several years, we've recognized benefits related to our role as the exclusive distributor of a number of COVID-19 products, which we have normalized for, by providing ex-COVID numbers, as we've indicated from the onset, we fully expected the exclusive distribution products to move to a normal commercial distribution model in the US and, as we all now know ,that will now occur during the first quarter of our fiscal 2024 the key products driving our exclusive COVID-19 contribution are. Moving to our commercial model. This month in fiscal 2024, we are anticipating the remaining benefit from exclusivity to be as low as 2 cents or as high as 10 cents, we do not anticipate that there'll be a meaningful contribution from any remaining exclusive COVID-19 products beyond our first quarter. As we've been doing for some time, we will plan to provide an update on the contribution we recognized from the exclusive distribution of these COVID-19 products excluding. Excluding the benefit from exclusive COVID-19 contributions in fiscal 2023, our fiscal 2024 EPS guidance represents growth in the range of 9% to 12% with a small <unk> to Tencent contribution from exclusive COVID-19 products in fiscal 2024 on page. <unk> in our earnings presentation, we have provided a bridge showing the components of our adjusted diluted EPS growth from the adjusted baseline in fiscal 2023. As I mentioned when discussing our fourth quarter results. We began distributing COVID-19 vaccines in the U S. In September and recognize the benefit from gaining access to these products now that they are commercially available. As I also mentioned, we have seen better than expected share in the products given the complex handling requirements of these temperature sensitive vaccines and the customer channels. Since these products are normal commercial arrangements. We will include contributions related to these products in our as reported results and will not provide a category level contribution on them. <unk> with our approach to the other pharmaceuticals that we distribute commercially with. We continue to monitor trends for these vaccines, which have generally experienced higher than expected, presumably seasonal demand alongside flu vaccines. Now I will discuss the key income statement items that drive our adjusted EPS guidance. Starting with revenue, we expect consolidated revenue growth to be in the range of 7% to 10% on both an as reported and constant currency basis.

Over the past several years, we recognized benefits related to our role as the exclusive distributor of a number of COVID-19 products, which we have normalized for by providing ex COVID-19 numbers.

James Cleary: As we've indicated from the onset, we fully expected the exclusive distribution products to move to a normal commercial distribution model in the US, and as we all now know, that will now occur during Q1 of our fiscal 2024. The key products driving our exclusive COVID contribution are moving to a commercial model this month. In fiscal 2024, we are anticipating the remaining benefit from exclusivity to be as low as $0.02 or as high as $0.10. We do not anticipate that there will be a meaningful contribution from any remaining exclusive COVID products beyond our Q1. As we've been doing for some time, we will plan to provide an update on the contribution we recognize from the exclusive distribution of these COVID products.

As we've indicated from the onset we fully expected the exclusive distribution products to move to a normal commercial distribution model in the U S and as we all now know that will now occur during the first quarter of our fiscal 2020 for the key products driving our exclusive COVID-19 contribution are.

Jim Cleary: The key products driving our exclusive COVID-19 contribution are moving to our commercial model this month, in fiscal 2024, we are anticipating the remaining benefit from exclusivity to be as low as 2 cents, or as high as 10 cents, we do not anticipate that there'll be a meaningful contribution from any remaining exclusive COVID products beyond our first quarter. As we've been doing for some time, we will plan to provide an update on the contribution we recognized from the exclusive distribution of these COVID-19 products excluding. Excluding the benefit from exclusive COVID-19 contributions in fiscal 2023, our fiscal 2024 EPS guidance represents growth in the range of 9% to 12% with a small <unk> to Tencent contribution from exclusive COVID-19 products in fiscal 2024 on page. <unk> in our earnings presentation, we have provided a bridge showing the components of our adjusted diluted EPS growth from the adjusted baseline in fiscal 2023. As I mentioned when discussing our fourth quarter results. We began distributing COVID-19 vaccines in the U S. In September and recognize the benefit from gaining access to these products now that they are commercially available. As I also mentioned, we have seen better than expected share in the products given the complex handling requirements of these temperature sensitive vaccines and the customer channels. Since these products are normal commercial arrangements. We will include contributions related to these products in our as reported results and will not provide a category level contribution on them. <unk> with our approach to the other pharmaceuticals that we distribute commercially with. We continue to monitor trends for these vaccines, which have generally experienced higher than expected, presumably seasonal demand alongside flu vaccines. Now I will discuss the key income statement items that drive our adjusted EPS guidance. Starting with revenue, we expect consolidated revenue growth to be in the range of 7% to 10% on both an as reported and constant currency basis.

Moving to our commercial model. This month in fiscal 2024, we are anticipating the remaining benefit from exclusivity to be as low as <unk> or as high as 10 cents, we do not anticipate that there'll be a meaningful contribution from any remaining exclusive COVID-19 products beyond our first quarter.

As we've been doing for some time, we will plan to provide an update on the contribution we recognized from the exclusive distribution of these COVID-19 products excluding.

Jim Cleary: As we've been doing for some time, we will plan to provide an update on the contribution we recognized from the exclusive distribution of these COVID products, excluding the benefit from exclusive COVID-19 contributions in fiscal 2023, our fiscal 2024 EPS guidance, represents growth in the range of 9% to 12%, with a small 2 cents to 10 cents contribution from exclusive COVID products in fiscal 2024. on page. <unk> in our earnings presentation, we have provided a bridge showing the components of our adjusted diluted EPS growth from the adjusted baseline in fiscal 2023. As I mentioned when discussing our fourth quarter results. We began distributing COVID-19 vaccines in the U S. In September and recognize the benefit from gaining access to these products now that they are commercially available. As I also mentioned, we have seen better than expected share in the products given the complex handling requirements of these temperature sensitive vaccines and the customer channels. Since these products are normal commercial arrangements. We will include contributions related to these products in our as reported results and will not provide a category level contribution on them. <unk> with our approach to the other pharmaceuticals that we distribute commercially with. We continue to monitor trends for these vaccines, which have generally experienced higher than expected, presumably seasonal demand alongside flu vaccines. Now I will discuss the key income statement items that drive our adjusted EPS guidance. Starting with revenue, we expect consolidated revenue growth to be in the range of 7% to 10% on both an as reported and constant currency basis.

James Cleary: Excluding the benefit from exclusive COVID-19 contributions in fiscal 2023, our fiscal 2024 EPS guidance represents growth in the range of 9% to 12%, with a small $0.02 to $0.10 contribution from exclusive COVID products in fiscal 2024. On page 13 in our earnings presentation, we have provided a bridge showing the components of our adjusted diluted EPS growth from the adjusted baseline in fiscal 2023. As I mentioned when discussing our fourth quarter results, we began distributing COVID-19 vaccines in the US in September and recognized the benefit from gaining access to these products now that they are commercially available. As I also mentioned, we have seen better than expected share in the products, given the complex handling requirements of these temperature-sensitive vaccines and the customer channels.

Excluding the benefit from exclusive COVID-19 contributions in fiscal 2023, our fiscal 2024 EPS guidance represents growth in the range of 9% to 12% with a small <unk> to Tencent contribution from exclusive COVID-19 products in fiscal 2024 on page.

Jim Cleary: On page 13 in our earnings presentation, we have provided a bridge, showing the components of our adjusted diluted EPS growth from the adjusted baseline in fiscal 2023, as I mentioned when discussing our fourth quarter results, we began distributing COVID-19 vaccines in the US in September and recognize the benefit from gaining access to these products now that they are commercially available. As I also mentioned, we have seen better than expected share in the products given the complex handling requirements of these temperature sensitive vaccines and the customer channels. Since these products are normal commercial arrangements. We will include contributions related to these products in our as reported results and will not provide a category level contribution on them. <unk> with our approach to the other pharmaceuticals that we distribute commercially with. We continue to monitor trends for these vaccines, which have generally experienced higher than expected, presumably seasonal demand alongside flu vaccines. Now I will discuss the key income statement items that drive our adjusted EPS guidance. Starting with revenue, we expect consolidated revenue growth to be in the range of 7% to 10% on both an as reported and constant currency basis.

<unk> in our earnings presentation, we have provided a bridge showing the components of our adjusted diluted EPS growth from the adjusted baseline in fiscal 2023.

As I mentioned when discussing our fourth quarter results. We began distributing COVID-19 vaccines in the U S. In September and recognize the benefit from gaining access to these products now that they are commercially available.

As I also mentioned, we have seen better than expected share in the products given the complex handling requirements of these temperature sensitive vaccines and the customer channels.

Jim Cleary: As I also mentioned, we have seen better than expected share in the products, given the complex handling requirements of these temperature-sensitive vaccines and the customer channels, since these products are normal commercial arrangements, We will include contributions related to these products in our as reported results and will not provide a category level contribution on them, consistent with our approach to the other pharmaceuticals that we distribute commercially with. We continue to monitor trends for these vaccines, which have generally experienced higher than expected, presumably seasonal demand alongside flu vaccines. Now I will discuss the key income statement items that drive our adjusted EPS guidance. Starting with revenue, we expect consolidated revenue growth to be in the range of 7% to 10% on both an as reported and constant currency basis.

James Cleary: Since these products are normal commercial arrangements, we will include contributions related to these products in our as-reported results and will not provide a category-level contribution on them, consistent with our approach to the other pharmaceuticals that we distribute commercially. We continue to monitor trends for these vaccines, which have generally experienced higher than expected, presumably seasonal demand alongside Flu vaccines. Now I will discuss the key income statement items that drive our adjusted EPS guidance. Starting with revenue, we expect consolidated revenue growth to be in the range of 7% to 10% on both an as-reported and constant currency basis. At the segment level, we also expect US Healthcare Solutions revenue growth to be in the range of 7% to 10% as we continue to see strong prescription utilization trends, including continued growth in products in the GLP-1 class.

Since these products are normal commercial arrangements. We will include contributions related to these products in our as reported results and will not provide a category level contribution on them.

<unk> with our approach to the other pharmaceuticals that we distribute commercially with.

We continue to monitor trends for these vaccines, which have generally experienced higher than expected, presumably seasonal demand alongside flu vaccines.

Jim Cleary: We continue to monitor trends for these vaccines, which have generally experienced, higher than expected, presumably seasonal demand alongside flu vaccines. Now I will discuss the key income statement items that drive our adjusted EPS guidance. Starting with revenue, we expect consolidated revenue growth to be in the range of 7% to 10% on both an as reported and constant currency basis.

Now I will discuss the key income statement items that drive our adjusted EPS guidance.

Jim Cleary: Starting with revenue, we expect consolidated revenue growth to be in the range of 7% to 10% on both, in as reported and constant currency basis, at the segment level we also expect US healthcare solutions revenue growth to be in the range of 7% to 10% as we continue to see strong prescription utilization trends, including continued growth in products IN the GLP-1 class. For the international Health care solutions segment on an as reported basis using October. Foreign exchange rates, we expect revenue growth to be in the range of 4% to 8%. On a constant currency basis, we expect revenue growth for the international segment to be in the range of 7% to 11%. Moving to operating income, we expect consolidated operating income growth to be in the range of 4% to 6% or 5% to 7% on a constant currency basis. Excluding the COVID-19 contributions I detailed we expect consolidated operating income growth to be in the range of 7% to 9% or 8% to 10% on a constant currency basis. In the U S Health care solutions segment, we expect operating income growth to be in the range of 4% to 7% in fiscal 2024 on an ex Covid basis, We expect U S segment operating income growth to be in the range of 7% to 10% as we benefited from continued strong fundamentals in our core pharmaceutical distribution. <unk>, our leadership in specialty and good contributions from our animal health and upstream pharma services businesses in the U S. For our international Health Care Solutions segment, we expect operating income growth to be in the range of 1% to 4% on an as reported basis or 5% to 8% on a constant currency basis on an ex COVID-19 basis, We expect segment operating income growth to be in the range of 3% to 6% on an as reported basis or 7% to 10. Percent on a constant currency basis, the international Health care solutions segment has seen strong performance from our global specialty logistics business and good execution in our European distribution business, which we expect to continue in fiscal 2024. Now turning to interest expense, we expect our interest expense to be between 210 and $230 million moving.

Starting with revenue, we expect consolidated revenue growth to be in the range of 7% to 10% on both an as reported and constant currency basis.

At the segment level, we also expect U S health care solutions revenue growth to be in the range of 7% to 10% as we continue to see strong prescription utilization trends, including continued growth in products and the <unk> one class for the international Health care solutions segment on an as reported basis using October.

James Cleary: For the International Healthcare Solutions segment, on an as-reported basis, using October foreign exchange rates, we expect revenue growth to be in the range of 4% to 8%. On a constant currency basis, we expect revenue growth for the international segment to be in the range of 7% to 11%. Moving to operating income, we expect consolidated operating income growth to be in the range of 4% to 6% or 5% to 7% on a constant currency basis. Excluding the COVID-19 contributions I detailed, we expect consolidated operating income growth to be in the range of 7% to 9% or 8% to 10% on a constant currency basis. In the US Healthcare Solutions segment, we expect operating income growth to be in the range of 4% to 7% in fiscal 2024.

Jim Cleary: For the international Health care solutions segment, on an as reported basis, using October foreign exchange rates, we expect revenue growth to be in the range of 4% to 8%, on a constant currency basis, we expect revenue growth for the international segment to be in the range of 7% to 11%. Moving to operating income, we expect consolidated operating income growth to be in the range of 4% to 6% or 5% to 7% on a constant currency basis. Excluding the COVID-19 contributions I detailed we expect consolidated operating income growth to be in the range of 7% to 9% or 8% to 10% on a constant currency basis. In the U S Health care solutions segment, we expect operating income growth to be in the range of 4% to 7% in fiscal 2024 on an ex Covid basis, We expect U S segment operating income growth to be in the range of 7% to 10% as we benefited from continued strong fundamentals in our core pharmaceutical distribution. <unk>, our leadership in specialty and good contributions from our animal health and upstream pharma services businesses in the U S. For our international Health Care Solutions segment, we expect operating income growth to be in the range of 1% to 4% on an as reported basis or 5% to 8% on a constant currency basis on an ex COVID-19 basis, We expect segment operating income growth to be in the range of 3% to 6% on an as reported basis or 7% to 10. Percent on a constant currency basis, the international Health care solutions segment has seen strong performance from our global specialty logistics business and good execution in our European distribution business, which we expect to continue in fiscal 2024. Now turning to interest expense, we expect our interest expense to be between 210 and $230 million moving.

Foreign exchange rates, we expect revenue growth to be in the range of 4% to 8%.

On a constant currency basis, we expect revenue growth for the international segment to be in the range of 7% to 11%.

Jim Cleary: Moving to operating income, we expect consolidated operating income growth to be in the range of 4% to 6% or 5% to 7% on a constant currency basis, excluding the COVID-19 contributions I detailed, we expect consolidated operating income growth to be in the range of 7% to 9% or 8% to 10% on a constant currency basis. In the U S Health care solutions segment, we expect operating income growth to be in the range of 4% to 7% in fiscal 2024 on an ex Covid basis, We expect U S segment operating income growth to be in the range of 7% to 10% as we benefited from continued strong fundamentals in our core pharmaceutical distribution. <unk>, our leadership in specialty and good contributions from our animal health and upstream pharma services businesses in the U S. For our international Health Care Solutions segment, we expect operating income growth to be in the range of 1% to 4% on an as reported basis or 5% to 8% on a constant currency basis on an ex COVID-19 basis, We expect segment operating income growth to be in the range of 3% to 6% on an as reported basis or 7% to 10. Percent on a constant currency basis, the international Health care solutions segment has seen strong performance from our global specialty logistics business and good execution in our European distribution business, which we expect to continue in fiscal 2024. Now turning to interest expense, we expect our interest expense to be between 210 and $230 million moving.

Moving to operating income, we expect consolidated operating income growth to be in the range of 4% to 6% or 5% to 7% on a constant currency basis.

Excluding the COVID-19 contributions I detailed we expect consolidated operating income growth to be in the range of 7% to 9% or 8% to 10% on a constant currency basis.

Jim Cleary: In the US Health care solutions segment, we expect operating income growth to be in the range of 4% to 7% in fiscal 2024, on an ex-COVID basis, We expect US segment operating income growth to be in the range of 7% to 10% as we benefited from continued strong fundamentals in our core pharmaceutical distribution business, our leadership in specialty and good contributions from our animal health and upstream pharma services businesses in the U S. For our international Health Care Solutions segment, we expect operating income growth to be in the range of 1% to 4% on an as reported basis or 5% to 8% on a constant currency basis on an ex COVID-19 basis, We expect segment operating income growth to be in the range of 3% to 6% on an as reported basis or 7% to 10. Percent on a constant currency basis, the international Health care solutions segment has seen strong performance from our global specialty logistics business and good execution in our European distribution business, which we expect to continue in fiscal 2024. Now turning to interest expense, we expect our interest expense to be between 210 and $230 million moving.

Jim Cleary: In the US Health care solutions segment, we expect operating income growth to be in the range of 4% to 7% in fiscal 2024, on an ex-COVID basis, we expect US segment operating income growth to be in the range of 7% to 10% as we benefited from continued strong fundamentals in our core pharmaceutical distribution business, our leadership in specialty and good contributions from our animal health and upstream pharma services businesses in the US.

In the U S Health care solutions segment, we expect operating income growth to be in the range of 4% to 7% in fiscal 2024 on an ex Covid basis, We expect U S segment operating income growth to be in the range of 7% to 10% as we benefited from continued strong fundamentals in our core pharmaceutical distribution.

James Cleary: On an ex-COVID basis, we expect US segment operating income growth to be in the range of 7% to 10% as we benefit from continued strong fundamentals in our core pharmaceutical distribution business, our leadership and specialty, and good contributions from our animal health and upstream pharma services businesses in the US. For our International Healthcare Solutions segment, we expect operating income growth to be in the range of 1% to 4% on an as-reported basis or 5% to 8% on a constant currency basis. On an ex-COVID basis, we expect segment operating income growth to be in the range of 3% to 6% on an as-reported basis or 7% to 10% on a constant currency basis.

<unk>, our leadership in specialty and good contributions from our animal health and upstream pharma services businesses in the U S.

Jim Cleary: For our international Health Care Solutions segment, we expect operating income growth to be in the range of 1% to 4% on an as reported basis or 5% to 8% on a constant currency basis, on an ex COVID basis, we expect segment operating income growth to be in the range of 3% to 6% on an as reported basis or 7% to 10. Percent on a constant currency basis. the international Health care solutions segment has seen strong performance from our global specialty logistics business and good execution in our European distribution business, which we expect to continue in fiscal 2024. Now turning to interest expense, we expect our interest expense to be between 210 and $230 million moving.

For our international Health Care Solutions segment, we expect operating income growth to be in the range of 1% to 4% on an as reported basis or 5% to 8% on a constant currency basis on an ex COVID-19 basis, We expect segment operating income growth to be in the range of 3% to 6% on an as reported basis or 7% to 10.

Percent on a constant currency basis, the international Health care solutions segment has seen strong performance from our global specialty logistics business and good execution in our European distribution business, which we expect to continue in fiscal 2024.

James Cleary: The International Healthcare Solutions segment has seen strong performance from our global specialty logistics business and good execution in our European distribution business, which we expect to continue in fiscal 2024. Now turning to interest expense. We expect our interest expense to be between $210 and $230 million. Moving on to tax rate. We expect our tax rate to be approximately 20% to 21% for fiscal 2024, similar to the prior two years. Turning now to share count. We expect that our full year average share count will be between 200 and 202 million shares in fiscal 2024. Moving now to our adjusted free cash flow and capital expenditure expectations.

Jim Cleary: the international Health care solutions segment has seen strong performance from our global specialty logistics business and good execution in our European distribution business, which we expect to continue in fiscal 2024. Now turning to interest expense, we expect our interest expense to be between 210 and $230 million moving. Moving on to tax rate, we expect our tax rate to be approximately 20% to 21% for fiscal 2024 similar to the prior two years, turning now to share count we expect that our full year average share count will be between 200 and 202 million shares in fiscal 2024 moves.

Jim Cleary: The international Healthcare solutions segment has seen strong performance from our global specialty logistics business and good execution in our European distribution business, which we expect to continue in fiscal 2024, now turning to interest expense, we expect our interest expense to be between $210 and $230 million dollars.

Now turning to interest expense, we expect our interest expense to be between 210 and $230 million moving.

Jim Cleary: Moving on to tax rate, we expect our tax rate to be approximately 20% to 21% for fiscal 2024, similar to the prior two years, turning now to share count, we expect that our full year average share count will be between 200 and 202 million shares in fiscal 2024 moves. Moving now to our adjusted free cash flow and capital expenditure expectations. Fiscal 2024, we expect adjusted free cash flow to be approximately $2 5 billion. Our continued generation of strong free cash flow supports our ability to grow our dividend and Opportunistically return capital to shareholders through share repurchases, while also making important investments to advance our business, both externally and internally. With regards to internal investments, we again expect capital expenditures to be approximately $500 million for the year. We remain focused on ensuring our business is well positioned by investing in our systems and infrastructure to support our current and future growth. In closing fiscal 2023 was a successful year for Syncora as we delivered strong financial performance and took key steps to advance our strategy, we've made investments to support our people and culture and United together is syncora. As we have demonstrated our business is well positioned to capture opportunities driven by the strength of our infrastructure breadth of our capabilities across the supply chain and thought leadership of our team members to proactively navigate complexities, we move into fiscal 2024 with strong momentum as we continue to capitalize on the opportunities. Presented by our pharmaceutical centric strategy and capabilities and remain focused on delivering on our purpose as we create value for our upstream and downstream customers. Our team members shareholders and the communities, where we live and work with that I'll turn the call over to the operator to open the line for questions operator.

Moving on to tax rate, we expect our tax rate to be approximately 20% to 21% for fiscal 2024 similar to the prior two years, turning now to share count we expect that our full year average share count will be between 200 and 202 million shares in fiscal 2024 moves.

Moving now to our adjusted free cash flow and capital expenditure expectations.

Jim Cleary: Moving now to our adjusted free cash flow and capital expenditure expectations, in fiscal 2024, we expect adjusted free cash flow to be approximately $2.5 billion dollars, our continued generation of strong free cash flow supports our ability to grow our dividend and opportunistically return capital to shareholders through share repurchases, while also making important investments to advance our business, both externally and internally. With regards to internal investments, we again expect capital expenditures to be approximately $500 million for the year. We remain focused on ensuring our business is well positioned by investing in our systems and infrastructure to support our current and future growth. In closing fiscal 2023 was a successful year for Syncora as we delivered strong financial performance and took key steps to advance our strategy, we've made investments to support our people and culture and United together is syncora. As we have demonstrated our business is well positioned to capture opportunities driven by the strength of our infrastructure breadth of our capabilities across the supply chain and thought leadership of our team members to proactively navigate complexities, we move into fiscal 2024 with strong momentum as we continue to capitalize on the opportunities. Presented by our pharmaceutical centric strategy and capabilities and remain focused on delivering on our purpose as we create value for our upstream and downstream customers. Our team members shareholders and the communities, where we live and work with that I'll turn the call over to the operator to open the line for questions operator.

James Cleary: In fiscal 2024, we expect adjusted free cash flow to be approximately $2.5 billion. Our continued generation of strong free cash flow supports our ability to grow our dividend and opportunistically return capital to shareholders through share repurchases, while also making important investments to advance our business, both externally and internally. With regards to internal investments, we again expect capital expenditures to be approximately $500 million for the year. We remain focused on ensuring our business is well-positioned by investing in our systems and infrastructure to support our current and future growth. In closing, fiscal 2023 was a successful year for Cencora as we delivered strong financial performance and took key steps to advance our strategy. We made investments to support our people and culture, and united together as Cencora.

Fiscal 2024, we expect adjusted free cash flow to be approximately $2 5 billion.

Our continued generation of strong free cash flow supports our ability to grow our dividend and Opportunistically return capital to shareholders through share repurchases, while also making important investments to advance our business, both externally and internally.

Jim Cleary: With regards to internal investments, we again expect capital expenditures to be approximately $500 million dollars for the year, we remain focused on ensuring our business is well positioned by investing in our systems and infrastructure to support our current and future growth. In closing fiscal 2023 was a successful year for Syncora as we delivered strong financial performance and took key steps to advance our strategy, we've made investments to support our people and culture and United together is syncora. As we have demonstrated our business is well positioned to capture opportunities driven by the strength of our infrastructure breadth of our capabilities across the supply chain and thought leadership of our team members to proactively navigate complexities, we move into fiscal 2024 with strong momentum as we continue to capitalize on the opportunities. Presented by our pharmaceutical centric strategy and capabilities and remain focused on delivering on our purpose as we create value for our upstream and downstream customers. Our team members shareholders and the communities, where we live and work with that I'll turn the call over to the operator to open the line for questions operator.

With regards to internal investments, we again expect capital expenditures to be approximately $500 million for the year. We remain focused on ensuring our business is well positioned by investing in our systems and infrastructure to support our current and future growth.

Jim Cleary: In closing fiscal 2023 was a successful year for Cencora, as we delivered strong financial performance and took key steps to advance our strategy, we made investments to support our people and culture and united together as Cencora, as we have demonstrated, our business is well positioned to capture opportunities, driven by the strength of our infrastructure breadth of our capabilities across the supply chain and thought leadership of our team members to proactively navigate complexities, we move into fiscal 2024 with strong momentum as we continue to capitalize on the opportunities. Presented by our pharmaceutical centric strategy and capabilities and remain focused on delivering on our purpose as we create value for our upstream and downstream customers. Our team members shareholders and the communities, where we live and work with that I'll turn the call over to the operator to open the line for questions operator.

In closing fiscal 2023 was a successful year for Syncora as we delivered strong financial performance and took key steps to advance our strategy, we've made investments to support our people and culture and United together is syncora.

James Cleary: As we have demonstrated, our business is well-positioned to capture opportunities, driven by the strength of our infrastructure, breadth of our capabilities across the supply chain, and thought leadership of our team members to proactively navigate complexities. We move into fiscal 2024 with strong momentum as we continue to capitalize on the opportunities presented by our pharmaceutical-centric strategy and capabilities, and remain focused on delivering on our purpose as we create value for our upstream and downstream customers, our team members, shareholders, and the communities where we live and work. With that, I will turn the call over to the operator to open the line for questions. Operator?

As we have demonstrated our business is well positioned to capture opportunities driven by the strength of our infrastructure breadth of our capabilities across the supply chain and thought leadership of our team members to proactively navigate complexities, we move into fiscal 2024 with strong momentum as we continue to capitalize on the opportunities.

Jim Cleary: We move into fiscal 2024 with strong momentum as we continue to capitalize on the opportunities. Presented by our pharmaceutical centric strategy and capabilities and remain focused on delivering on our purpose as we create value for our upstream and downstream customers, our team members, shareholders and the communities where we live and work with that I'll turn the call over to the operator to open the line for questions operator.

Presented by our pharmaceutical centric strategy and capabilities and remain focused on delivering on our purpose as we create value for our upstream and downstream customers. Our team members shareholders and the communities, where we live and work with that I'll turn the call over to the operator to open the line for questions operator.

Operator: Thank you. As a reminder, if you would like to ask a question today, please do so now by pressing star followed by the number one on your telephone keypad. If you change your mind and would like to be removed from the queue, that's star followed by two. When preparing to ask your question, please ensure that your device and your microphone are unmuted locally. Our first question today comes from the line of Lisa Gill with JPMorgan. Lisa, please go ahead. Your line is now open.

Operator Emily: As a reminder, if you would like to ask a question today, please do so now by pressing star, followed by the number one on your telephone keypad, if you change your mind and would like to be removed from queue, press star followed by 2, on preparing to ask a question, please be sure that your device and your microphone are unmuted.

To ask a question, please and surely it would defy Andrew microphone on mute like me.

Operator Emily: Our first question today comes from the line of Lisa Gill with J P. Morgan Lisa. Please go ahead. Your line is now open.

Lisa Gill: Thanks. Thanks very much, and thanks for all the details, Jim and Steve. Steve, I wanted to ask a bigger picture question. I think, you know, there's been a little bit of an overhang on the stock as you think about your relationship with Walgreens Boots Alliance and the lack of leadership. And even with the former leaders, I would say they had less of a healthcare focus. We now have Tim Wentworth, who's been named CEO. I know you've had a long-standing relationship with Tim. I really just would be curious around two things. One, when you think about the relationship, do you think that there's an opportunity to either deepen the relationship, or are there new verticals you can work together on? And what are your thoughts on the leadership, number one?

Lisa Gill: Thanks very much and thanks for all the details, Jim and Steve, Steve I wanted to ask a bigger picture question, I think you know there's been a little bit of an overhang on the stock as you think about your relationship with Walgreens Boots Alliance and a lack of leadership that, even with the former leaders I would say they had less of a health care focused, we now have Tim Wentworth, who has been named CEO, I know you've had a long standing relationship with Tim, I really just would be curious around two things, one, when you think about the relationship do you think that there is an opportunity to even deepen that relationship or are there new verticals. You can work together on and what are your thoughts on the leadership number one and then number two when we think about the sale of your stock and they they clearly are in a. Physician. Where are they probably need to do something and whether it's cut their dividend or sell more stock I know that they have. Some future contracts and the percentage ownership of Adcs is way down but. How do we think about that and your ability. Maybe this is a question for Jan to continue to buy back shares that as that continues to happen. Thank you.

Thanks, Thanks, very much and thanks for all the details, Jim and Steve and Dave.

I wanted to ask a bigger picture question I think you know theres been a little bit of an overhang on the stock as you think about your relationship with Walgreens Boots Alliance and a lack of leadership that even with the former leaders I would say they had less of a health care focused we now have Tim Wentworth, who has been named CEO I know you've had a long standing.

Tim I really just would be curious around two things one when you think about the relationship do you think that there is an opportunity to even deepen that relationship or are there new verticals. You can work together on and what are your thoughts on the leadership number one and then number two when we think about the sale of your stock and they they clearly are in a.

Lisa Gill: One, when you think about the relationship, do you think that there is an opportunity to even deepen the relationship or, are there new verticals you can work together on and what are your thoughts on the leadership, number one, and then number two when we think about the sale of your stock and they clearly are in a position where they probably need to do something, whether it's cut their dividend or sell more stock, I know that they have some future contracts and the percentage of ownership of ADC is way down but, how do I think about that and your ability, maybe this is a question for Jim, to continue to buy back shares that, as that continues to happen. Thank you.

Lisa Gill: And then number two, when we think about the sale of your stock, and they clearly are in a position where they probably need to do something, whether it's cut their dividend or sell more stock. I know that they have some future contracts and the percentage of ownership of ABC is way down. But how do I think about that and your ability, maybe this is a question for Jim, to continue to buy back shares as that continues to happen? Thank you.

Physician.

Where are they probably need to do something and whether it's cut their dividend or sell more stock I know that they have.

Some future contracts and the percentage ownership of Adcs is way down but.

How do we think about that and your ability. Maybe this is a question for Jan to continue to buy back shares that as that continues to happen. Thank you.

Steve Collis: Yeah. Hi, Lisa. Good morning, and thank you. So, of course, our relationship with Walgreens is, and Boots in the UK is very significant. We also have the WBAD purchasing alliance. So it's, you know, it's by far the most scaled and material relationship we have. So having said that, we're very pleased that someone we've known literally for decades, like Tim, has assumed the mantle. And, you know, he's proven track record. I first met Tim when I was running the specialty business at the former Bergen Brunswig, and he was running the Credo division at Medco. So go back a long, long time. But, you know, our partnership is very strategic.

Steven Collis: Yeah, Hi Lisa good morning and thank you, so of course our relationship with Walgreens and Boots in the UK is very significant, we also have the WBAD purchasing alliance, so it's by far the most scaled and material relationship we have, so having said that, we're very pleased that someone who we've known literally for decades like Tim has assumed the mantle, and he has a proven track record I first made to them when I was running the specialty business at the former Bergen Brunswick and he was running the accrete our division that medco. So go back a long long time. Our partnership is very. Very strategic. We believe that there is always room to do more because of the scale that we have and also the challenges that we are going to have so you in the past we've worked together on purchasing and sourcing initiatives I think we worked effectively very well together through this COVID-19 season, where we both had our respective roles. And of course, much more patient direct in front of the patient, but we. We think that. This relationship will continue to prosper. We look forward to them being a very successfully in the new role Jim you want to take the second part.

In boots in the UK is very significant.

We also have the we bad purchasing our lines so its spot for the most the.

Most of the scaled and and material relationship we have.

So having said that we're very pleased about that.

Someone who we've known for decades locked him has assumed the mantle.

Steven Collis: I first met Tim when I was running the specialty business at the former Bergen Brunswig and he was running the Accredo division at Medco, so we go back a long long time but our partnership is very strategic, we believe that there is always room to do more because of the scale that we have and also the challenges that we are going to have so you in the past we've worked together on purchasing and sourcing initiatives, I think we worked effectively very well together through this COVID season, where we both had our respective roles and there's been of course, much more patient direct in front of the patient, but we think that this relationship will continue to prosper and we look forward to Tim being very successfully in the new role, Jim you want to take the second part.

She has a proven track record I first made to them when I was running the specialty business at the former Bergen Brunswick and he was running the accrete our division that medco. So go back a long long time.

Our partnership is very.

Steve Collis: We believe that there's always room to do more because of the scale that we have, and also the challenges that we're gonna have. So, you know, in the past, we've worked together on purchasing and sourcing initiatives. I think we worked effectively very well together through this COVID season, where we both had our respective roles. There's been, of course, much more patient direct in front of the patient. But we think that, you know, that this relationship will continue to prosper, and we, you know, we look forward to Tim being very successful in the new role. Jim, you wanna take the second part?

Very strategic.

We believe that there is always room to do more because of the scale that we have and also the challenges that we are going to have so you in the past we've worked together on purchasing and sourcing initiatives I think we worked effectively very well together through this COVID-19 season, where we both had our respective roles.

And of course, much more patient direct in front of the patient, but we.

We think that.

This relationship will continue to prosper.

We look forward to them being a very successfully in the new role Jim you want to take the second part.

James Cleary: Sure. Thanks for the question, Lisa, and I'll talk about the capital deployment portion. You know, we've successfully collaborated with Walgreens on their latest transactions, repurchasing about $250 million in shares from Walgreens in the most recent quarter, and over $1 billion in shares from Walgreens over the past year. If they were to continue to sell our shares, which wouldn't surprise us, we'd view it as an opportunity to continue to collaborate with them and repurchase some of the shares. The amount that we'd repurchase would be dependent on, you know, managing our capital needs and opportunities. You know, I'm pleased to say that this fiscal year that recently ended, we generated $3.1 billion of free cash flow.

Jim Cleary: Sure, thanks for that question Lisa and I'll talk about the capital deployment portion, we've successfully collaborated with Walgreens on their latest transactions, repurchasing about $250 million dollars in shares from Walgreens in the most recent quarter and over a $1 billion dollars in shares from Walgreens over the past year. and if they were to continue to sell our shares which wouldn't surprise us and we'd view it as an opportunity to continue to collaborate with them and repurchase some of the shares and the amount that we repurchase would be dependent on managing our capital needs and opportunities and I am pleased to say that this. Fiscal year that recently ended we generated $3 $1 billion of free cash flow. So we feel very good about our cash flow generation and our balance sheet and our ability to deploy capital. Thanks, a lot for the question.

Jim Cleary: And if they were to continue to sell our shares, which wouldn't surprise us, and we'd view it as an opportunity to continue to collaborate with them and repurchase some of the shares and the amount that we repurchase would be dependent on managing our capital needs and opportunities and, I am pleased to say that this fiscal year that recently ended, we generated $3.1 billion dollars of free cash flow, so we feel very good about our cash flow generation and our balance sheet and our ability to deploy capital. Thanks, a lot for the question.

<unk> over the past year and if they were to continue to sell our shares which wouldn't surprise us and we'd view it as an opportunity to continue to collaborate with them and repurchase some of the shares and the amount that we repurchase would be dependent on managing our capital needs and opportunities and I am pleased to say that this.

Fiscal year that recently ended we generated $3 $1 billion of free cash flow. So we feel very good about our cash flow generation and our balance sheet and our ability to deploy capital. Thanks, a lot for the question.

James Cleary: So we feel, you know, very good about our cash flow generation and our balance sheet and our ability to deploy capital. Thanks a lot for the question.

Operator: Our next question comes from the line of Elizabeth Anderson with Evercore ISI. Please go ahead, Elizabeth. Your line is now open.

Operator Emily: Our next question comes from Elizabeth Anderson with Evercore ISI. Please go ahead Elizabeth, your line is now open.

Jeff Anderson with Evercore ISI.

Please go ahead Elizabeth your line is now open.

Elizabeth Anderson: Hi, guys. Thanks so much for the question, and appreciate the details on 2024. I was wondering if you could talk through in a little bit more detail some of the underlying op profit drivers for 2024. You know, as I'm thinking about them, sort of core customer growth, the sort of GLP-1 benefits, obviously, you know, some of the new, the benefit for the new acquisitions you've been doing, just to help us sort of get a better sense on where you're seeing perhaps, you know, outsized growth, et cetera, for the upcoming fiscal year. Thank you.

Elizabeth Anderson: Hi guys thanks so much for the question and I appreciate the details on '24, I was wondering if you could talk through some of, in a little bit more detail, some of the underlying Op profit drivers for 2024, as I'm thinking about them sort of core customer growth (inaudible) GLP-1 benefit obviously some of the new, the benefit from the new acquisitions you've been doing, just to help us sort of get a better sense on where you're seeing, perhaps you know outsize growth etc for the upcoming fiscal year. Thank you.

Thinking about them sort of core customer growth Mr. G. L. P. One benefit obviously is.

Some of the new the benefit from the new acquisitions had been doing just to help us sort of get a better sense on where you're seeing perhaps you know outsize growth etc.

The upcoming fiscal year. Thank you.

James Cleary: ... Great. Well, I'll start out by saying that we feel, you know, very good about our guidance for fiscal year 2024. You know, on a consolidated level, our adjusted operating income, we're expecting it to, you know, grow in the eight to 10% range. That's, you know, constant currency ex-COVID. And so some of the things that move us within that range, you know, from a big picture standpoint, it's of course, you know, the growth rate of our higher margin, higher growth businesses in particular specialty distribution, but also our commercialization services businesses, including World Courier. The continued, you know, strength and utilization trends, which we've certainly seen in fiscal year 2023.

Jim Cleary: Great well I'll start out by saying that we feel very good about our guidance for fiscal year '24, on our consolidated level, our adjusted operating income, we're expecting it to grow in the 8% to 10% range, so that's constant currency ex-COVID and so some of the things that move us within that range, from a big picture standpoint, it's of course, you know the growth rate of our higher margin higher growth businesses. In particular specialty distribution, but also our commercialization services businesses, including World Courier. The continued strength in utilization trends, which we've certainly seen in fiscal year 'twenty three. Extent. Strength of those utilization trends in fiscal year 'twenty four certainly are. One of the things that will drive our business of course. Pricing always plays a role. <unk> branded inflation and generic deflation rates. Sales of Covid products, and and talked a quite a quite a bit about that. During the prepared remarks, and then of course also FX, but typically we look at this on a. On a constant currency basis, and I can get into a little bit more detailed commentary on some of these things on some of the kind of the moving pieces as I said during the prepared remarks, we're expecting two to 10 cents of EPS contribution related to exclusive COVID-19 product distribution with them. Vast majority of that in the first quarter. We. Divested of course, the Egyptian business during the fourth quarter of the year, which we were pretty very pleased with and that business didn't have a meaningful operating income contribution in fiscal 'twenty. Three so the divestiture will not create a meaningful headwind to fiscal 'twenty. Four you asked about G. L. P. One products there. A key driver of our revenue growth. They're minimally profitable for us so not a major driver of bar. Operating income growth, but and so those are. Some of the things that are from a big picture standpoint, and a detailed standpoint that are driving our business in fiscal year 'twenty four and I will just finish up by saying we have very good confidence in our guidance. Given our strong momentum and the strength, we've seen broadly across our businesses as we finished fiscal year 'twenty three. Yeah.

Consolidated level, our adjusted operating income, we're expecting it to grow in the 8% to 10% range. So that's constant currency ex COVID-19 and so some of the.

Things that move us within that range from a big picture standpoint, It's of course, you know the growth rate of our higher margin higher growth businesses.

In particular specialty distribution, but also our commercialization services businesses, including World Courier.

Jim Cleary: The continued strength in utilization trends, which we've certainly seen in fiscal year '23, the extent of the strength of those utilization trends in fiscal year '24 certainly are one of the things that will drive our business, of course drug pricing always plays a role, including branded inflation and generic deflation rates. Sales of Covid products, and and talked a quite a quite a bit about that. During the prepared remarks, and then of course also FX, but typically we look at this on a. On a constant currency basis, and I can get into a little bit more detailed commentary on some of these things on some of the kind of the moving pieces as I said during the prepared remarks, we're expecting two to 10 cents of EPS contribution related to exclusive COVID-19 product distribution with them. Vast majority of that in the first quarter. We. Divested of course, the Egyptian business during the fourth quarter of the year, which we were pretty very pleased with and that business didn't have a meaningful operating income contribution in fiscal 'twenty. Three so the divestiture will not create a meaningful headwind to fiscal 'twenty. Four you asked about G. L. P. One products there. A key driver of our revenue growth. They're minimally profitable for us so not a major driver of bar. Operating income growth, but and so those are. Some of the things that are from a big picture standpoint, and a detailed standpoint that are driving our business in fiscal year 'twenty four and I will just finish up by saying we have very good confidence in our guidance. Given our strong momentum and the strength, we've seen broadly across our businesses as we finished fiscal year 'twenty three. Yeah.

The continued strength in utilization trends, which we've certainly seen in fiscal year 'twenty three.

James Cleary: The extent of the strength of those utilization trends in fiscal year 2024, certainly, you know, are one of the things that will drive our business. Of course, drug pricing always plays a role, including branded inflation and generic deflation rates. Sales of COVID products, and I talked quite, quite a bit about that during the prepared remarks. And then, of course, also, FX, but typically we look at this on a on a constant currency basis. And I could, you know, get into a little bit more detailed commentary on some of these things, on some of the, kind of the, moving pieces.

Extent.

Strength of those utilization trends in fiscal year 'twenty four certainly are.

One of the things that will drive our business of course.

Pricing always plays a role.

Jim Cleary: Sales of Covid products, and I talked quite a quite a bit about that during the prepared remarks, and then of course also FX, but typically we look at this on a constant currency basis, and I can get into a little bit more detailed commentary on some of these things, on some of the kind of the moving pieces as I said during the prepared remarks, we're expecting 2 to 10 cents of EPS contribution related to exclusive COVID-19 product distribution with the vast majority of that in the first quarter. We. Divested of course, the Egyptian business during the fourth quarter of the year, which we were pretty very pleased with and that business didn't have a meaningful operating income contribution in fiscal 'twenty. Three so the divestiture will not create a meaningful headwind to fiscal 'twenty. Four you asked about G. L. P. One products there. A key driver of our revenue growth. They're minimally profitable for us so not a major driver of bar. Operating income growth, but and so those are. Some of the things that are from a big picture standpoint, and a detailed standpoint that are driving our business in fiscal year 'twenty four and I will just finish up by saying we have very good confidence in our guidance. Given our strong momentum and the strength, we've seen broadly across our businesses as we finished fiscal year 'twenty three. Yeah.

<unk> branded inflation and generic deflation rates.

Sales of Covid products, and and talked a quite a quite a bit about that.

During the prepared remarks, and then of course also FX, but typically we look at this on a.

On a constant currency basis, and I can get into a little bit more detailed commentary on some of these things on some of the kind of the moving pieces as I said during the prepared remarks, we're expecting two to 10 cents of EPS contribution related to exclusive COVID-19 product distribution with them.

James Cleary: As I said, during the prepared remarks, we're expecting, you know, $0.02 to $0.10 of EPS contribution related to exclusive COVID-19 product distribution, with the vast majority of that in the first quarter. We divested, of course, the Egyptian business during the fourth quarter of the year, which we were very pleased with, and that business didn't have a meaningful operating income contribution in fiscal 2023, so the divestiture will not create a meaningful headwind to fiscal 2024. You asked about GLP-1 products. They're, you know, a key driver of our revenue growth, but they're minimally profitable for us, so not a major driver of our operating income growth.

Jim Cleary: We divested of course, the Egyptian business during the fourth quarter of the year, which we were pretty very pleased with and that business didn't have a meaningful operating income contribution in fiscal '23 so the divestiture will not create a meaningful headwind to fiscal '24. you asked about G. L. P. One products there. A key driver of our revenue growth. They're minimally profitable for us so not a major driver of bar. Operating income growth, but and so those are. Some of the things that are from a big picture standpoint, and a detailed standpoint that are driving our business in fiscal year 'twenty four and I will just finish up by saying we have very good confidence in our guidance. Given our strong momentum and the strength, we've seen broadly across our businesses as we finished fiscal year 'twenty three. Yeah.

Vast majority of that in the first quarter.

We.

Divested of course, the Egyptian business during the fourth quarter of the year, which we were pretty very pleased with and that business didn't have a meaningful operating income contribution in fiscal 'twenty. Three so the divestiture will not create a meaningful headwind to fiscal 'twenty. Four you asked about G. L. P. One products there.

Jim Cleary: You asked about the GLP-1 products there, you know a key driver of our revenue growth, but they're minimally profitable for us so not a major driver of bar, operating income growth, but and so those are some of the things that are, from a big picture standpoint and a detailed standpoint, that are driving our business in fiscal year '24 and I will just finish up by saying we have very good confidence in our guidance, given our strong momentum and the strength we've seen broadly across our businesses as we've finished fiscal year '23.

A key driver of our revenue growth.

They're minimally profitable for us so not a major driver of bar.

James Cleary: Those are, you know, some of the things that are, from a big picture standpoint and a detailed standpoint, that are driving our business in fiscal year 2024. I'll just finish up by saying, you know, we have very good confidence in our guidance, you know, given our strong momentum and the strength we've seen broadly across our businesses as we've finished fiscal year 2023.

Operating income growth, but and so those are.

Some of the things that are from a big picture standpoint, and a detailed standpoint that are driving our business in fiscal year 'twenty four and I will just finish up by saying we have very good confidence in our guidance.

Given our strong momentum and the strength, we've seen broadly across our businesses as we finished fiscal year 'twenty three.

Yeah.

Operator: Our next question comes from Eric Percher with Nephron Research. Eric, please go ahead. Your line is now open.

Operator Emily: Our next question comes from Eric Percher with Nephron research, Eric. Please go ahead. Your line is now open.

Eric. Please go ahead. Your line is now open.

Eric Percher: Thank you. Guidance-related questions here. Steve or Jim, I'd be interested for your view on the list prices related to AMP, AMP cap changes in January. And obviously, we have the insulins. I'm curious if that was an impact at all in guidance for next year, and if you expect to see others. Then, Jim, I'd be interested in your assumptions on brand increases. Are you assuming in the guidance that it's not as strong as what we saw in 2023, and that might leave upside? Then GLP-1s, do those begin to annualize at the revenue line in Q1 and Q2? When, when do we start to cycle that?

Eric Percher: Thank you, a guidance related questions here, Steve or Jim I'd be interested for your view on the list prices related to A&P cap changes in January and obviously, we have the insulins, I'm curious if that was an impact at all in guidance for next year and if you expect to see others and then Jim I'd be interested in your assumptions on brand increases, are you assuming in the guidance that it's not as strong as what we saw in '23 and that might leave upside and then GLP-1s do those begin to annualize at the revenue line in Q1 and Q2, when when do we start to cycle that.

Steve or Jim I'd be interested for your view on the list prices related to A&P A&P cap changes in January and obviously, we have the insulins.

I'm curious if that was an impact at all in guidance for next year and if you expect to see others and then Jim might be interested in your assumptions on brand increases are you assuming in the guidance that it's not as strong as what we saw in 'twenty three and that might leave.

Syed and then G. L. P ones do those begin to annualize that the revenue line in Q1 and Q2, when when do we start to cycle that.

James Cleary: Yeah. Okay, so let me address those things, Eric. First of all, with regard to insulin pricing, you know, there's nothing that I'll call out. The anticipated impact is reflected within our guidance range. And I'll say that, you know, as always, when there are, you know, changes that could impact our economics, we engage in discussions with manufacturers and other stakeholders to ensure that we continue to be adequately compensated for the value we provide. You'd asked about drug pricing and how that impacts guidance. And, you know, what I'll say is, you know, we don't put out specific guidance metrics on drug pricing, but our guidance contemplates brand and generic pricing changes being in line with what we've seen over the past couple years.

Jim Cleary: So let me address those things Eric, first of all, with regard to insulin pricing, there's nothing that I'll call out, the anticipated impact is reflected within our guidance range and I'll say that you know, as always, when there are changes that could impact our economics, we engaged in discussions with manufacturers and other stakeholders to ensure that we continue to be adequately compensated for the value we provide. You'd asked about. Drug pricing and how that impacts guidance and. What I will say as you know, we don't put out specific guidance metrics on drug pricing, but our guidance contemplates brand and generic pricing changes being in line with what we've seen over the past couple of years with regard to brand inflation, it's really less important for St Cora because well over 95% of our brand by. <unk> dollars are fee for service with regard to generic deflation. And Eric deflation has moderated in recent months in certain pockets of the market. So it was less of a headwind for St. Cora in fiscal year 'twenty three versus prior years and so that was of course positive for us if deflation were to continue to moderate more broadly across generics and it would be. Continue it would continue to be less of a headwind for our business. I'll say that from a supply and demand dynamic standpoint, it remains generally imbalanced and we work closely with manufacturers to understand their supply and availability of product given shortened shortages in certain areas, but as you know our business model is not. Reliant on generic pricing as it once was in the past. Several years ago, our leadership recognized the need to have more balanced profitability across the portfolio of pharmaceuticals, and so we've rebalanced some contracts to make sure that syncor receive fair compensation for the value, we provide across brand generics and specialty which has been key especially as the market continues to shift to include more specialty products. And Steve did you have a follow up there yeah, just a couple of things. Wanted to say in terms of anticipated any reforms as we note because the best of our knowledge most of the pricing concessions would take place below the WAC lines. So. That's that's what we anticipate at the moment just in Jim on G. O P ones I'd say are they they'll clearly most impactful on the top line. And an incredible example of innovation in our industry and the patient impacts. We expect continued growth in this category, but again there are much more meaningful revenue growth rather than operating income driving. But important part of our portfolio. The last thing I'd say is that we continue to add. Advocates and help our community pharmacies to obtain adequate reimbursement on these products. So thanks for the question.

Address those things Eric first of all with regard to.

Insulin pricing, but there's nothing that I'll call out the anticipated impact is reflected within our guidance range and I'll say that you know as always when there are changes that could impact our economics, we engaged in discussions with manufacturers and other stakeholders to ensure that we continue to be adequately comp.

Jim Cleary: You'd asked about drug pricing and how that impacts guidance and what I will say as you know, we don't put out specific guidance metrics on drug pricing, but our guidance contemplates brand and generic pricing changes being in line with what we've seen over the past couple of years, with regard to brand inflation, it's really less important for Cencora because well over 95% of our brand by side dollars are fee for service, with regard to generic deflation, generic deflation has moderated in recent months in certain pockets of the market, so it was less of a headwind for Cencora in fiscal year '23 versus prior years and so that was of course positive for us, if deflation were to continue to moderate more broadly across generics and it would be. Continue it would continue to be less of a headwind for our business. I'll say that from a supply and demand dynamic standpoint, it remains generally imbalanced and we work closely with manufacturers to understand their supply and availability of product given shortened shortages in certain areas, but as you know our business model is not. Reliant on generic pricing as it once was in the past. Several years ago, our leadership recognized the need to have more balanced profitability across the portfolio of pharmaceuticals, and so we've rebalanced some contracts to make sure that syncor receive fair compensation for the value, we provide across brand generics and specialty which has been key especially as the market continues to shift to include more specialty products. And Steve did you have a follow up there yeah, just a couple of things. Wanted to say in terms of anticipated any reforms as we note because the best of our knowledge most of the pricing concessions would take place below the WAC lines. So. That's that's what we anticipate at the moment just in Jim on G. O P ones I'd say are they they'll clearly most impactful on the top line. And an incredible example of innovation in our industry and the patient impacts. We expect continued growth in this category, but again there are much more meaningful revenue growth rather than operating income driving. But important part of our portfolio. The last thing I'd say is that we continue to add. Advocates and help our community pharmacies to obtain adequate reimbursement on these products. So thanks for the question.

<unk> stated for the value we provide.

You'd asked about.

Drug pricing and how that impacts guidance and.

What I will say as you know, we don't put out specific guidance metrics on drug pricing, but our guidance contemplates brand and generic pricing changes being in line with what we've seen over the past couple of years with regard to brand inflation, it's really less important for St Cora because well over 95% of our brand by.

James Cleary: With regard to brand inflation, it's really less important for Cencora because, you know, well over 95% of our brand buy-side dollars are fee for service. With regard to generic deflation, generic deflation has moderated in recent months in certain pockets of the market, so it was less of a headwind for Cencora in fiscal year 2023 versus prior years, and so that was, of course, positive for us. If deflation were to continue to moderate more broadly across generics, it would continue to be less of a headwind for our business. I'll say that, you know, from a supply and demand dynamic standpoint, it remains generally in balance, and we work closely with manufacturers to understand their supply and availability of product, given shortages in certain areas.

Jim Cleary: With regard to generic deflation, generic deflation has moderated in recent months in certain pockets of the market, so it was less of a headwind for Cencora in fiscal year '23 versus prior years and so that was of course positive for us, if deflation were to continue to moderate more broadly across generics it would be continue, it would continue to be less of a headwind for our business. I'll say that from a supply and demand dynamic standpoint, it remains generally imbalanced and we work closely with manufacturers to understand their supply and availability of product given shortened shortages in certain areas, but as you know our business model is not. Reliant on generic pricing as it once was in the past. Several years ago, our leadership recognized the need to have more balanced profitability across the portfolio of pharmaceuticals, and so we've rebalanced some contracts to make sure that syncor receive fair compensation for the value, we provide across brand generics and specialty which has been key especially as the market continues to shift to include more specialty products. And Steve did you have a follow up there yeah, just a couple of things. Wanted to say in terms of anticipated any reforms as we note because the best of our knowledge most of the pricing concessions would take place below the WAC lines. So. That's that's what we anticipate at the moment just in Jim on G. O P ones I'd say are they they'll clearly most impactful on the top line. And an incredible example of innovation in our industry and the patient impacts. We expect continued growth in this category, but again there are much more meaningful revenue growth rather than operating income driving. But important part of our portfolio. The last thing I'd say is that we continue to add. Advocates and help our community pharmacies to obtain adequate reimbursement on these products. So thanks for the question.

<unk> dollars are fee for service with regard to generic deflation.

And Eric deflation has moderated in recent months in certain pockets of the market. So it was less of a headwind for St. Cora in fiscal year 'twenty three versus prior years and so that was of course positive for us if deflation were to continue to moderate more broadly across generics and it would be.

Jim Cleary: I'll say that from a supply and demand dynamic standpoint, it remains generally imbalanced and we work closely with manufacturers to understand their supply and availability of product given shortened, shortages in certain areas, but as you know our business model is not reliant on generic pricing as it once was in the past. Several years ago, our leadership recognized the need to have more balanced profitability across the portfolio of pharmaceuticals, and so we've rebalanced some contracts to make sure that syncor receive fair compensation for the value, we provide across brand generics and specialty which has been key especially as the market continues to shift to include more specialty products. And Steve did you have a follow up there yeah, just a couple of things. Wanted to say in terms of anticipated any reforms as we note because the best of our knowledge most of the pricing concessions would take place below the WAC lines. So. That's that's what we anticipate at the moment just in Jim on G. O P ones I'd say are they they'll clearly most impactful on the top line. And an incredible example of innovation in our industry and the patient impacts. We expect continued growth in this category, but again there are much more meaningful revenue growth rather than operating income driving. But important part of our portfolio. The last thing I'd say is that we continue to add. Advocates and help our community pharmacies to obtain adequate reimbursement on these products. So thanks for the question.

Continue it would continue to be less of a headwind for our business.

I'll say that from a supply and demand dynamic standpoint, it remains generally imbalanced and we work closely with manufacturers to understand their supply and availability of product given shortened shortages in certain areas, but as you know our business model is not.

James Cleary: But as you know, our business model is not as reliant on generic pricing as it once was in the past. You know, several years ago, our leadership recognized the need to have more balanced profitability across the portfolio of pharmaceuticals, and so we rebalanced, contracts to make sure that Cencora receives fair compensation for the value we provide across brand, generics, and specialty, which has been key, especially as the market continues to shift to include more specialty products. And Steve, did you have a follow-up there?

Jim Cleary: Several years ago, our leadership recognized the need to have more balanced profitability across the portfolio of pharmaceuticals, and so we've rebalanced some contracts to make sure that Cencora receive fair compensation for the value we provide across brand generics and specialty, which has been key especially as the market continues to shift to include more specialty products. And Steve did you have a follow up there yeah, just a couple of things. Wanted to say in terms of anticipated any reforms as we note because the best of our knowledge most of the pricing concessions would take place below the WAC lines. So. That's that's what we anticipate at the moment just in Jim on G. O P ones I'd say are they they'll clearly most impactful on the top line. And an incredible example of innovation in our industry and the patient impacts. We expect continued growth in this category, but again there are much more meaningful revenue growth rather than operating income driving. But important part of our portfolio. The last thing I'd say is that we continue to add. Advocates and help our community pharmacies to obtain adequate reimbursement on these products. So thanks for the question.

Reliant on generic pricing as it once was in the past.

Several years ago, our leadership recognized the need to have more balanced profitability across the portfolio of pharmaceuticals, and so we've rebalanced some contracts to make sure that syncor receive fair compensation for the value, we provide across brand generics and specialty which has been key especially as the market continues to shift to include more specialty products.

Jim Cleary: And Steve did you have a follow up there yeah, just a couple of things. Wanted to say in terms of anticipated any reforms as we note because the best of our knowledge most of the pricing concessions would take place below the WAC lines. So. That's that's what we anticipate at the moment just in Jim on G. O P ones I'd say are they they'll clearly most impactful on the top line. And an incredible example of innovation in our industry and the patient impacts. We expect continued growth in this category, but again there are much more meaningful revenue growth rather than operating income driving. But important part of our portfolio. The last thing I'd say is that we continue to add. Advocates and help our community pharmacies to obtain adequate reimbursement on these products. So thanks for the question.

Jim Cleary: And Steve did you have a follow up there

Jim Cleary: Yeah, just a couple of things, I just wanted to say, in terms of anticipating any reforms as we know, the base of our knowledge most of the pricing concessions would take place below the WAC lines so that's what we anticipate at the moment, just in Jim on GLP-1s I'd say they are clearly most impactful on the top line and an incredible example of innovation in our industry and the patient impacts. We expect continued growth in this category, but again there are much more meaningful revenue growth rather than operating income driving. But important part of our portfolio. The last thing I'd say is that we continue to add. Advocates and help our community pharmacies to obtain adequate reimbursement on these products. So thanks for the question.

And Steve did you have a follow up there yeah, just a couple of things.

Steve Collis: Yeah, just a couple of things. I just want to say, in terms of any anticipated reforms, as we know, to the best of our knowledge, most of the pricing concessions would take place below the WAC line. So, that's, you know, what we anticipate at the moment. Just then, Jim, on GLP-1s. I'd say, they are clearly most impactful on the top line, and an incredible example of the innovation in our industry and the patient impacts. We expect continued growth in this category, but again, they're a much more meaningful revenue growth rather than operating income driver, and, you know, but important part of our portfolio. The last thing I'd say is that we continue to advocate and help our community pharmacies to obtain adequate reimbursement on this product.

Wanted to say in terms of anticipated any reforms as we note because the best of our knowledge most of the pricing concessions would take place below the WAC lines. So.

That's that's what we anticipate at the moment just in Jim on G. O P ones I'd say are they they'll clearly most impactful on the top line.

And an incredible example of innovation in our industry and the patient impacts. We expect continued growth in this category, but again there are much more meaningful revenue growth rather than operating income driving.

Jim Cleary: We expect continued growth in this category, but again there are much more meaningful revenue growth rather than operating income driving but an important part of our portfolio, and the last thing I'd say is that we continue to add advocates and help our community pharmacies to obtain adequate reimbursement on these products so, thanks for the question.

But important part of our portfolio. The last thing I'd say is that we continue to add.

Advocates and help our community pharmacies to obtain adequate reimbursement on these products. So thanks for the question.

Steve Collis: Thanks for the question.

Operator: Our next question comes from Daniel Grosslight with Citibank. Daniel, please go ahead. Your line is now open.

Operator Emily: Our next question comes from Daniel Grosslight with Citibank Daniel. Please go ahead. Your line is now open.

Daniel Grosslight: Hi, thanks for taking the question. I wanna stick with guidance here, and really relative to your longer term outlook, which I know hasn't been updated in a few quarters. But, you know, you're operating now on an adjusted constant currency basis at around 8% to 10% AOI growth versus your longer term guidance of 5% to 8%. And, you know, that's coming off after a pretty strong fiscal 2023 as well. So I'm curious, you know, is there anything, I guess, looking out longer term, that would cause that growth to step down perhaps in fiscal 2025 and beyond? Or are you in kind of a secularly stronger market than you were when you initially gave that longer term growth outlook? Thanks.

Daniel R. Grosslight: Hi, Thanks for taking the question I'm going to stick with the guidance here and really relative to your longer term outlook, which hasn't been updated in a few quarters, but you're operating now on an adjusted constant currency basis at around 8% to 10% AOI growth versus your longer term guidance of 5% to 8% and that's coming off after a pretty strong fiscal '23 as well so I'm curious, is there anything I guess looking out longer term, that would cause that growth to step down perhaps in fiscal '25 and beyond, or are you in kind of a secular lease stronger market than you were when you initially gave that longer term growth outlook.

Term guidance of 5% to 8% and that's coming off after a pretty strong fiscal 'twenty three as well so I'm curious.

Is there anything I guess looking out longer term that would cause that growth to step down perhaps in fiscal 'twenty five and beyond or are you in kind of a secular lease stronger market than you were when you initially gave that longer term growth outlook.

James Cleary: Yeah. So let me start off, and I'll talk about, you know, our long-term guidance. And as you know, our long-term guidance, it contemplates operating income growth of 5% to 8% and EPS growth of 8% to 12%, normalizing for exclusive government-owned COVID products and foreign exchange. You know, this, we are assuming we'll be able to grow 5% to 8% in each of our segments, and capital deployment contribution will be 3% to 4%. You know, at... Our guidance is higher than that. As you know, in fiscal year 2024, as we called out, you know, as you mentioned, on a consolidated, adjusted operating income growth basis, it's 8% to 10% constant currency, ex-COVID.

Jim Cleary: Yeah, So let me start off and I'll talk about our long term guidance and as you know our long term guidance it contemplates operating income growth of 5% to 8% and EPS growth of 8% to 12% normalizing for exclusive government owned COVID products and foreign exchange. This we are assuming we will be able to grow 5% to 8% in each of our segments and capital deployment contribution will be 3% to 4%. Our guidance is. Higher than that as you know in fiscal year 'twenty four as we called out.

Start off and I'll talk about our long term guidance and as you know.

Our long term guidance it contemplates operating income growth of 5% to 8%.

And EPS growth.

8% to 12% normalizing for exclusive government owned Covid products and foreign exchange.

Jim Cleary: This we are assuming will be able to grow 5% to 8% in each of our segments and capital deployment contribution will be 3% to 4% our guidance is higher than that, as you know in fiscal year '24 as we called out as you've mentioned on a consolidated adjusted operating income growth basis. It's 8% to 10% constant currency ex-COVID in there. There are a number of things that are driving R.

This we are assuming we will be able to grow 5% to 8% in each of our segments and capital deployment contribution will be 3% to 4%.

Our guidance is.

Higher than that as you know in fiscal year 'twenty four as we called out.

As you've mentioned on a consolidated adjusted operating income growth basis. It's.

<unk>, 8% to 10% constant currency ex.

James Cleary: And, you know, there are, you know, a number of things that are driving our, our, guidance in fiscal year 2024, and, and number of things that drive our long-term guidance. And, you know, one thing I think to keep in mind is that, you know, the kind of the second half of our fiscal year 2024, it compares to, you know, two quarters of particularly strong ex-COVID growth, including, you know, 15% growth that we had in the, in the Q3 of fiscal year 2023, and then the 14% growth we had in the most recent quarter. But, you know, we, we have, you know, really good confidence in our long-term growth capability, and it'll be, you know, driven by the things that's been driving our, our recent growth.

<unk> in there.

Jim Cleary: And there are a number of things that are driving our rug guidance in fiscal year '24 and a number of things that drive our long term guidance and one thing I think to keep in mind is that, kind of that the second half of our fiscal year '24 it compares to two quarters of particularly strong ex-COVID growth, including 15% growth that we had in the third quarter of fiscal year '23 and then the 14% growth we had in the most recent quarter, but we have really good confidence in our long term growth capability and it will be driven by the things that's been driving our recent growth with the growth of our higher margin higher growth businesses, including specialty distribution in our commercialization services business. That's continued strong utilization trends at some drug pricing and those those sorts of things and so we have good confidence in our fiscal year 'twenty for guidance and you know very good confidence in our long term guidance.

There are a number of things that are driving R.

Our rug guidance in fiscal year 'twenty four and.

And number of things that drive our long term guidance and one thing I think to keep in mind is that.

But the kind of that the second half of our fiscal year 'twenty four it compares to two quarters of.

<unk> strong ex COVID-19 growth, including.

15% growth that we had and the Hum in the third quarter of fiscal year 'twenty three and then the 14% growth we had in the most recent quarter, but we have really good confidence in our long term.

Jim Cleary: But we have really good confidence in our long term growth capability and it will be driven by the things that's been driving our recent growth, with the growth of our higher margin, higher growth businesses, including specialty distribution in our commercialization services business that's continued strong utilization trends at some drug pricing and those sorts of things and so, we have good confidence in our fiscal year '24 guidance and you know very good confidence in our long term guidance.

Growth capability and it will be driven by the things that's been driving our RF.

James Cleary: You know, it's the growth of our higher margin, higher growth businesses, including specialty distribution and our commercialization services business. It's continued strong utilization trends. It's drug pricing and those, those sorts of things. And so, you know, we have good confidence in our fiscal year 2024 guidance and, you know, very good confidence in our long-term guidance.

<unk> recent growth with the growth of our higher margin higher growth businesses, including specialty distribution in our commercialization services business. That's continued strong utilization trends at some drug pricing and those those sorts of things and so we have good confidence in our fiscal year 'twenty for guidance and you know very good confidence in our long term guidance.

Yeah.

Operator: Our next question comes from the line of Alan Lutz with Bank of America. Alan, please go ahead. Your line is now open.

Operator Emily: Our next question comes from the line of Allen Lutz with Bank of America, Allen please go ahead, Your line is now open.

Please go ahead. Your line is now open.

Allen Lutz: Good morning, Steve and Jim, and thank you for taking the questions. Steve, you spoke about the recent conference that you attended with the Good Neighbor Pharmacy customers, and our work suggests that you've been growing the number of pharmacies under that brand pretty nicely over the past few years. I'm curious, with some of the headwinds we're seeing for companies like Walgreens, can you talk about the current state of the independent pharmacy market and, and what you're seeing there? Thanks.

Allen Lutz: Good morning Steve and Jim and thank you for taking the questions, Steve you spoke about the recent conference that you attended with the Good Neighbor Pharmacy customers and our work suggests that you've been growing the number of pharmacies under that brand pretty nicely over the past few years, I am curious with some of the headwinds we're seeing for companies like Walgreens, can you talk about the current state of the independent pharmacy market and what you're seeing there. Thanks.

Talk about the current state of the independent pharmacy market and what you're seeing there. Thanks.

Steve Collis: Yeah, thanks for the question. You know, our community pharmacies always differentiate themselves with their resilience. And broadly speaking, they held up well around the, you know, 21% of market share, and they've been in that place for several years now. I think, you know, with product innovations like GLP-1s and more and more people doing their vaccine and COVID shots at the pharmacy, it does give an opportunity. You know, the labor and access to pharmacists is probably easier on a more micro level, on a smaller basis. And, you know, often, you know, some of those pharmacies are in smaller communities. They're very active in those communities.

Jim Cleary: Yeah. Thanks for the question. Our community pharmacies are always differentiate themselves with their resilience. And broadly speaking. They held up there. Hold up well. Round, 2021% of market share and they have been in that place for several years now. I think. With with product innovations like GOP ones and more and more people doing the. Vaccine in Covid shots at the pharmacy, it does given opportunity. The labor in excess to pharmacist is is probably be easier on a on a more macro level or a smaller basis. And you know often. Some of those pharmacies on smaller communities are very active in those communities. And also some of them play a key role in access to <unk>. Under served communities as a leading health care provider in those communities. So. We are proud of our partnership with them you mentioned growing and I would say that we do that through our relationships with our buying groups that we are I believe are leaders in this space and you know it. It's a fascinating space for us and one that we'll continue to invest in thanks for the question. Our next question comes from George Hill with Deutsche Bank. George. Please go ahead. Your line is now open.

Jim Cleary: Yeah, thanks for the question, our community pharmacies always differentiate themselves with their resilience and broadly speaking, they held up, they hold up well, around 20-21% of market share and they've been in that place for several years now, I think with product innovations like GLP-1s and more and more people doing the vaccine and COVID shots at the pharmacy, it does given opportunity. The labor in excess to pharmacist is is probably be easier on a on a more macro level or a smaller basis. And you know often. Some of those pharmacies on smaller communities are very active in those communities. And also some of them play a key role in access to <unk>. Under served communities as a leading health care provider in those communities. So. We are proud of our partnership with them you mentioned growing and I would say that we do that through our relationships with our buying groups that we are I believe are leaders in this space and you know it. It's a fascinating space for us and one that we'll continue to invest in thanks for the question.

Our community pharmacies are always differentiate themselves with their resilience.

And broadly speaking.

They held up there.

Hold up well.

Round, 2021% of market share and they have been in that place for several years now.

I think.

With with product innovations like GOP ones and more and more people doing the.

Jim Cleary: The labor in excess to pharmacist is probably be easier on a more macro level or a smaller basis and you know often some of those pharmacies on smaller communities are very active in those communities and also some of them play a key role in access to under served communities as a leading health care provider in those communities so we are proud of our partnership with them you mentioned growing and I would say that we do that through our relationships with our buying groups that we are I believe are leaders in this space and you know it. It's a fascinating space for us and one that we'll continue to invest in thanks for the question.

Vaccine in Covid shots at the pharmacy, it does given opportunity.

The labor in excess to pharmacist is is probably be easier on a on a more macro level or a smaller basis.

And you know often.

Some of those pharmacies on smaller communities are very active in those communities.

Steve Collis: And also some of them play a key role in access to underserved communities as a leading healthcare provider in those communities. So, you know, we're proud of our partnership with them. You mentioned growing, and I would say that we do that through our relationships with some buying groups that we are, you know, believe are leaders in this space. And, you know, it's a fascinating space for us and one that we'll continue to invest in. Thanks for the question.

And also some of them play a key role in access to <unk>.

Jim Cleary: So we are proud of our partnership with them, you mentioned growing and I would say that we do that through our relationships with some buying groups that we are, I believe are leaders in this space, and you know it's a fascinating space for us and one that we'll continue to invest in, thanks for the question.

Under served communities as a leading health care provider in those communities. So.

We are proud of our partnership with them you mentioned growing and I would say that we do that through our relationships with our buying groups that we are I believe are leaders in this space and you know it.

It's a fascinating space for us and one that we'll continue to invest in thanks for the question.

Operator Emily: Our next question comes from George Hill with Deutsche Bank. George. Please go ahead. Your line is now open.

Operator: Our next question comes from George Hill with Deutsche Bank. George, please go ahead. Your line is now open.

Our next question comes from George Hill with Deutsche Bank. George. Please go ahead. Your line is now open.

George Hill: Yep. Good morning, guys, and thanks for taking the question. And Jim, kind of a question at a high level as you look out to earnings, operating earnings growth in 2024. Would just love to hear you talk about growth in the specialty business versus what we think of as the regular way, retail store, drug wholesaling business. And maybe would love to hear you talk about margin growth in manufacturer-facing services versus retailer-facing services, and just kinda like, where are the pockets that, like, when we look at the kinda composite growth target, kinda where are the pockets of strength, and kinda where are the pockets of kinda performance that's closer to the core? Thank you.

George Hill: Yes, good morning, guys and thanks for taking the question and Jim kind of a question at a high level as you look out to earnings, operating earnings growth in 2024, would just love to hear you talk about growth in the specialty business versus what we think of as the regular way, retail store drug wholesaling business, and maybe we'd love to hear you talk about margin growth in manufacturer facing services versus retailer facing services, and just kind of like like, where are the pockets like when we look at the kind of composite growth target kind of where are the pockets of strength and kind of where are the pockets of kind of performance that is closer to the core. Thank you.

New factors facing services versus retailer facing services, and just kind of like like where are the pockets like when we when we look at the kind of composite growth target kind of where are the pockets of strength and kind of where are the pockets of kind of performance that is closer to the core. Thank you.

James Cleary: ... Yeah, and so, you know, as we look at growth opportunities, as you called out, specialty is, you know, a key driver of growth for us. And after I talk, I'll let - I'll ask Steve to talk about it also, because, of course, he was the founder of all those businesses. And, you know, we're seeing very good growth, and within the specialty market with regard to specialty physician services and physician practices. We're seeing good growth with health systems also, and there's so much innovation that's going on in the market. It's really a, you know, a long... It has been, and we think it will continue to be a long-term tailwind for our business.

Jim Cleary: We look at growth opportunities, as you called out, specialty is at a key driver of growth for us and after I talk I'll let, I'll ask Steve to talk about it also because of course he was the founder of all those businesses and we're seeing very good growth and and width and the specialty market with regard to specialty physician services and physician practices, we're seeing good growth with health systems also and there's so much innovation that's going on in the market it's really. A long it has been and we think it will continue to be a long term tailwind for our business the innovation in that market and the capabilities, we have including all of our wrap around services that we offer. And then just one example of our belief there is the investment that we've made in one oncology. And then with regard to our commercialization services business, our manufacturer services businesses that are higher margin. We are continuing to make investments there and continue to see very good opportunities and in addition to specialty and it will really continue to be a focus area for us driving our growth over fiscal year 'twenty four and the longer term Steve are there any things you'd like to add no not that thanks Jim. Well say that certainly I think if you look at where manufacturer based in dollars of course, there's been a very robust sector with the G. O P. One category in the diabetes and weight loss category, but you know oncology one way. So many manufacturers all focus we still feel that we have significant opportunities with bias. Some of those. Some of the other new categories of drugs in. In this area. Our cell and gene therapy are all going to be important. Business drivers for US are same quarter plays an important role in those products and maybe not on the practice management side the data value base case Sade so robust. Victor and Andre. Joanna this is so. So in so integral to those practices, but it's just still a very exciting place to be and and one way of St. <unk> will continue to be the leader so and. Hopefully, we also look to do more oncology in Europe over time as well.

We look at growth opportunities as you called out specialty is at.

A key driver of growth for us and.

After I talk I'll, let I'll ask Steve to talk about it also because of course he was the founder of all those businesses and we're seeing very good growth and and width and the specialty market with regard to specialty physician services and physician practices, we're seeing.

Good growth with health systems also and there's so much innovation that's going on in the market it's really.

A long it has been and we think it will continue to be a long term tailwind for our business the innovation in that market and the capabilities, we have including all of our wrap around services that we offer.

James Cleary: The innovation in that market and the capabilities we have, including all of our wraparound services that we offer. And then, you know, and one example of our belief there is the investment that we've made in OneOncology. And then with regard to our commercialization services business, our manufacturer services businesses that are higher margin, you know, we're continuing to make investments there and continue to see very good opportunities. And in addition to specialties, will really continue to be a focus area for us, driving our growth over fiscal year 2024 and the longer term. Steve, are there any things you'd like to add?

Jim Cleary: And then just in one example of our belief there is the investment that we've made in OneOncology, and then with regard to our commercialization services business, our manufacturer services businesses that are higher margin, we are continuing to make investments there and continue to see very good opportunities and in addition to specialty and it will really continue to be a focus area for us driving our growth over fiscal year '24 and the longer term Steve are there any things you'd like to add no not that thanks Jim. Well say that certainly I think if you look at where manufacturer based in dollars of course, there's been a very robust sector with the G. O P. One category in the diabetes and weight loss category, but you know oncology one way. So many manufacturers all focus we still feel that we have significant opportunities with bias. Some of those. Some of the other new categories of drugs in. In this area. Our cell and gene therapy are all going to be important. Business drivers for US are same quarter plays an important role in those products and maybe not on the practice management side the data value base case Sade so robust. Victor and Andre. Joanna this is so. So in so integral to those practices, but it's just still a very exciting place to be and and one way of St. <unk> will continue to be the leader so and. Hopefully, we also look to do more oncology in Europe over time as well.

And then just one example of our belief there is the investment that we've made in one oncology.

And then with regard to our commercialization services business, our manufacturer services businesses that are higher margin.

We are continuing to make investments there and continue to see very good opportunities and in addition to specialty and it will really continue to be a focus area for us driving our growth over fiscal year 'twenty four and the longer term Steve are there any things you'd like to add no not that thanks Jim.

Steve Collis: No, no. Thanks, Jim. You know, well said. Certainly, I think if you look at where manufacturers are investing their dollars, of course, there's been a very robust sector in the GLP-1 category and the diabetes and weight loss category. But, you know, oncology is one where so many manufacturers are focused. We still feel that we have significant opportunities with biosimilars. You know, with some of the other new categories of drugs in this area, cell and gene therapy are gonna be important business drivers for us. Cencora plays an important role in those products.

Steve Collis: No no, thanks Jim, Well said, certainly I think if you look at where manufacturer based in dollars of course, there's been a very robust sector with the GLP-1 category in the diabetes and weight loss category, but you know, oncology is one where so many manufacturers are focus, we still feel that we have significant opportunities with biosimilars, some of the other new categories of drugs in this area. Our cell and gene therapy are all going to be important. Business drivers for US are same quarter plays an important role in those products and maybe not on the practice management side the data value base case Sade so robust. Victor and Andre. Joanna this is so. So in so integral to those practices, but it's just still a very exciting place to be and and one way of St. <unk> will continue to be the leader so and. Hopefully, we also look to do more oncology in Europe over time as well.

Well say that certainly I think if you look at where manufacturer based in dollars of course, there's been a very robust sector with the G. O P. One category in the diabetes and weight loss category, but you know oncology one way. So many manufacturers all focus we still feel that we have significant opportunities with bias.

Some of those.

Some of the other new categories of drugs in.

In this area.

Steve Collis: Our cell and gene therapy are going to be important business drivers for us, Cencora plays an important role in those products, and then on the practice management side, the data, value based care side, you know it's so robust this sector and our role in it is so in so integral to those practices, but it's just still a very exciting place to be and in one way Cencora will continue to be the leader so and hopefully, we also look to do more oncology in Europe over time as well.

Our cell and gene therapy are all going to be important.

Business drivers for US are same quarter plays an important role in those products and maybe not on the practice management side the data value base case Sade so robust.

Steve Collis: And then, on the practice management side, the data, value-based care side, you know, it's so robust, this sector, and, you know, our role in it is so integral to those practices, that, it's just still a very exciting place to be, and one where Cencora will continue to be the leader. So, you know, hopefully, we also look to do more oncology in Europe over time as well. Thank you.

Victor and Andre.

Joanna this is so.

So in so integral to those practices, but it's just still a very exciting place to be and and one way of St. <unk> will continue to be the leader so and.

Hopefully, we also look to do more oncology in Europe over time as well.

Thank you.

Operator: Our next question comes from Kevin Caliendo with UBS. Kevin, please go ahead. Your line is open.

Operator: Our next question comes from Kevin Caliendo with UBS. Kevin. Please go ahead. Your line is open.

Andrea Alfonso: Hi, good morning, everyone. It's Andrea Alfonso in for Kevin. Thanks for taking the question. I wanted to switch gears a little bit, and ask about the international front and, you know, given your expectations for 7% to 10% ex-FX and ex-COVID, which is above the LRP targets you've outlined, could you maybe discuss, you know, some of your expectations there a little bit? You know, I, I'd assume maybe PharmaLex accretion is improving, but, you know, we also are comping against pretty strong growth in World Courier and sort of a volumes per shipment and mix basis, and then maybe what your expectations are for commodities as well.

[Analyst]: Hi, good morning, everyone. It's Andrea Alfonso in for Kevin. Thanks for taking the question. I wanted to switch gears a little bit, and ask about the international front and, you know, given your expectations for 7% to 10% ex-FX and ex-COVID, which is above the LRP targets you've outlined, could you maybe discuss, you know, some of your expectations there a little bit? You know, I, I'd assume maybe PharmaLex accretion is improving, but, you know, we also are comping against pretty strong growth in World Courier and sort of a volumes per shipment and mix basis, and then maybe what your expectations are for commodities as well.

Kevin Caliendo: Hi, good morning everyone it's Andrea Alfonso in for Kevin, thanks for taking the question, I wanted to switch gears a little bit and ask about the international front, given your expectation for 7% to 10% ex FX and ex Covid, which is about the LRP targets you've outlined, could you maybe discuss some of your expectations there a little bit, I assume maybe PharmaLex accretion is improving but we also are comping against a pretty strong growth in world Courier in terms of the volumes per shipment and mix basis and then maybe what your expectations are for commodities as well.

Given your expectation for 7% to 10% ex FX and ex Covid, which is about.

About the <unk> targets you've.

You've outlined could you.

Maybe discuss some of your expectations, there a little bit.

I assume maybe pharma lax.

Accretion is improving but we also are comping against a pretty strong growth in world Courier in terms of the volumes per shipment and mix basis.

And then maybe what your expectations are.

Our four for commodities as well.

James Cleary: Sure. So, we feel very good about our growth opportunity this year in international. You know, one of the things that's driving the growth rate, that I want to make sure you know, is we do have an extra quarter of PharmaLex in fiscal year 2024. We had three quarters in fiscal year 2023, and we'll have four quarters in 2024. Also, we'll really benefit from the fact that we've, you know, recently divested the Egyptian business, and, you know, that was a headwind in our fiscal year 2023, and it will no longer be a headwind in our fiscal year 2024.

Jim Cleary: We feel very good about our growth opportunity this year in international, you know one of the things that's driving the growth rate, that I want to make sure you know is we do have an extra quarter of PharmaLex in fiscal year '24 we had three quarters in fiscal year. 23, and we'll have four quarters in 24, also we'll really benefit for the fact that we've recently divested the Egyptian business and that was a headwind in our fiscal year 2023 and it will no longer be a headwind in our fiscal year '24 but overall, where you also continue to benefit just from the very strong global specialty logistics business. The world Courier business, which has been an excellent performer and then also solid execution. From the Alliance health care team in the alliance business and so those are some of the things that drive our. Growth rate in international in fiscal year '24.

23, and we'll have four quarters in 24 also will really benefit for the fact that we've recently divested the Egyptian business and.

That was a headwind in our fiscal year 'twenty.

'twenty three.

Three and it will no longer be a headwind in our fiscal year 'twenty four but overall, where you also continue to benefit just from the very strong global specialty logistics business. The world Courier business, which has been an excellent performer and then also solid execution.

James Cleary: But overall, we also, you know, continue to benefit just from the very strong global specialty logistics business, the World Courier business, which has been an excellent performer, and then also solid execution from the Alliance Healthcare team and the Alliance business. So, you know, those are some of the things that drive our growth rate in international and fiscal year 2024.

Jim Cleary: But overall, where you also continue to benefit just from the very strong global specialty logistics business, the world Courier business, which has been an excellent performer and then also solid execution from the Alliance health care team in the Alliance business and so those are some of the things that drive our growth rate international in fiscal year '24.

From the Alliance health care team in the alliance business and so those are some of the things that drive our.

Growth rate in international in fiscal year 'twenty four.

Operator: Our next question comes from Charles Rhee with TD Cowen. Charles, please go ahead. Your line is now open.

Operator: Our next question comes from Charles Rhyee with TD Cohen. Please go ahead. Your line is now open.

Please go ahead. Your line is now open.

Charles Rhyee: Great. Thanks for taking the question. Just wanted to follow up a little bit on, on that. As we think about, you know, the acquisition of PharmaLex, and you've been moving more into sort of pharma services, you know, are there other areas, when you think about serving your biopharma manufacturer partners, areas that you're, maybe you're not in, that you think are, sort of strategically kind of, tangential to things that you're doing now that could be interesting for you as you think about capital deployment going forward? Thanks.

Charles Rhyee: Great, Thanks for taking the question, I just wanted to follow up a little bit on that, as we think about the acquisition of PharmaLex and you've been moving more into sort of pharma services, are there other areas, when you think about serving your Biopharma manufacturer partners, areas that you're maybe not in that you think are sort of strategically, kind of tangential to things that You're doing now that could be interesting for you as you think about capital deployment going forward. Thanks.

The acquisition of pharma, Lex and you've been moving more into sort of pharma services are there other areas when.

When you think about serving your Biopharma manufacturer partners.

Areas that you're maybe not in that you think are.

Strategically kind of.

Tangential to things that Youre doing now that could be interesting for you as you think about capital deployment going forward. Thanks.

Steve Collis: Yeah, you know, PharmaLex is a strategic asset that's, you know, very complementary to our existing services. They, as you know, provide a platform of services in the US, as well as a high level of service or a differentiated level of service than we've historically been providing in Europe. You know, we already had a commercialization service category type businesses with companies like other well-known, like Lash and Xcenda. World Courier, in a way, has many aspects of it that are more like a commercial. Well, are a commercialization services, but also strong distribution and supply chain expertise in a ultra niche market. So these are areas that are very intriguing to us.

Steve Collis: Yeah, you know PharmaLex is a is a strategic asset that's very complementary to our existing services, they as you know provide a platform of services in the US as well as a high level of service for a differentiated level of service than we've historically been providing and in Europe. We already had a commercialization service category top businesses with companies like although well no not flash in exchange. World Korea in a way has many aspects of it that all are more like a commercial where are our commercialization services, but also has strong distribution and supply chain expertise and our ultra niche market. So these are areas that are very intriguing to us. We've always had a view that our customers are both up and down the supply chain and we wanted to. Carry on providing those based and cloud services, we have opportunities also for geographic expansion. So. Where else does it make sense for us to be and formal X has been very adept at getting into new markets and it is present in many many countries. So some of these compendium works. We're doing we've been talking about them in business reviews are already truly global in nature to the extent of very few projects that we worked on. In the past so exciting opportunities for us a strong management team, we focus on the integration and I think youll see a potential add on investments end to end, including geographic potentially but at the moment, we just focused on. Rolling it to the extent that we would. <unk> with key integration goals, so, but thank you for the question.

Complementary to our existing services as you know provide a platform of services in the U S as well as a high level of service for a differentiated level of service than we've historically been providing and in Europe.

We already had a commercialization service category top businesses with companies like although well no not flash in exchange.

Steve Collis: We already had a commercialization service category top businesses with companies like other well known like Lash and Xcenda, World Courier in a way has many aspects of it that are more like a commercial, or are our commercialization services, but also has strong distribution and supply chain expertise and our ultra niche market. So these are areas that are very intriguing to us. We've always had a view that our customers are both up and down the supply chain and we wanted to. Carry on providing those based and cloud services, we have opportunities also for geographic expansion. So. Where else does it make sense for us to be and formal X has been very adept at getting into new markets and it is present in many many countries. So some of these compendium works. We're doing we've been talking about them in business reviews are already truly global in nature to the extent of very few projects that we worked on. In the past so exciting opportunities for us a strong management team, we focus on the integration and I think youll see a potential add on investments end to end, including geographic potentially but at the moment, we just focused on. Rolling it to the extent that we would. <unk> with key integration goals, so, but thank you for the question.

World Korea in a way has many aspects of it that all are more like a commercial where are our commercialization services, but also has strong distribution and supply chain expertise and our ultra niche market. So these are areas that are very intriguing to us. We've always had a view that our customers are both up and down the supply chain and we wanted to.

Steve Collis: So these are areas that are very intriguing to us, we've always had a view that our customers are both up and down the supply chain and we want to carry on providing those best in class services and we have opportunities also for geographic expansion, so where else does it make sense for us to be and PharmaLex has been very adept at getting into new markets and it is present in many many countries. So some of these compendium works we're doing we've been talking about them in business reviews are already truly global in nature to the extent of very few projects that we worked on. In the past so exciting opportunities for us a strong management team, we focus on the integration and I think youll see a potential add on investments end to end, including geographic potentially but at the moment, we just focused on. Rolling it to the extent that we would. <unk> with key integration goals, so, but thank you for the question.

Steve Collis: We've always had a view that our customers are both up and down the supply chain, and we want to carry on providing those best-in-class services. We have opportunities also for geographic expansion. So, you know, where, where else does it make sense for us to be? And PharmaLex has been very adept at getting into new markets and is present in many, many countries. So, some of these compendia works we're doing, we've been talking about them, and business reviews are already truly global in nature, to the extent of very few projects that we've worked on in the past. So, exciting opportunities for us. Strong management team. We focused on the integration, and you, I think you'll see, you know, potential, you know, add-on investments and to and including geographic, potentially.

Carry on providing those based and cloud services, we have opportunities also for geographic expansion.

So.

Where else does it make sense for us to be and formal X has been very adept at getting into new markets and it is present in many many countries. So some of these compendium works. We're doing we've been talking about them in business reviews are already truly global in nature to the extent of very few projects that we worked on.

Steve Collis: So some of these compendium works we're doing, we've been talking about them and business reviews are already truly global in nature to the extent of very few projects that we worked on in the past so, exciting opportunities for us, a strong management team, we focus on the integration and I think you'll see a potential add on investments too , including geographic potentially but at the moment, we just focused on rolling it to the extent that we would want with key integration goals, so, but thank you for the question.

In the past so exciting opportunities for us a strong management team, we focus on the integration and I think youll see a potential add on investments end to end, including geographic potentially but at the moment, we just focused on.

Steve Collis: But at the moment, we're just focused on rolling it in, to the extent that we would want, with key integration goals. So, but thank you for the question.

Rolling it to the extent that we would.

<unk> with key integration goals, so, but thank you for the question.

Operator: Our next question comes from Erin Wright with Morgan Stanley. Erin, please go ahead. Your line is open.

Operator Emily: Our next question comes from Erin Wright with Morgan Stanley. Please go ahead your line is open.

Please go ahead your line is open.

Erin Wright: Great. Thanks so much. So a lot of my questions have been asked, but just a quick question on animal health. What are you currently seeing in the companion and production animal markets, and how do you see that playing out over the next year, just in light of some of the still sluggish vet office visit environment that we're seeing? And then, a separate question just on the 2024 guide. I think you mentioned the Walgreens relationship earlier, but any other contract changes or material renewals that we should be thinking about that may be embedded in your guidance here? Thanks.

Erin Wilson Wright: Great, thanks, and actually a lot of my questions have been asked, but just a quick question on animal health, what are you currently seeing in the companion and production animal market and how do you see that playing out over the next year, just in light of some that still sluggish vet office visit environment that we're seeing, and a separate question, just on the 2024 guide, I think you mentioned the Walgreens relationship earlier but any other contract changes or material renewals that we should be thinking about that may be embedded in your guidance here, thanks.

Question just on the 2024 guide I think you mentioned the Walgreens relationship earlier.

Any other contract changes are material renewals that we should be thinking about that may be embedded in your guidance here I think.

James Cleary: Okay. Yeah, sure. I'll start off with the animal health business there, Erin, and thanks a lot for the question, and I'll really focus my answer on our business. And as I mentioned during my prepared remarks, our animal health business had a great quarter. Both our companion and production animal businesses grew very nicely during the quarter. And despite the companion market having some headline issues with vet visits, we've continued to see good sales growth. And in the production market, the herd count remains near record lows, but you know, given the high price of cattle, producers wanna make sure they keep their cattle healthy.

Jim Cleary: Okay yeah sure, I'll start off with the animal health business there Erin and thanks, a lot for the question and I'll really focus my answer on our business and as I mentioned during my prepared remarks, our animal health business had a great quarter, both our companion and production animal businesses grew very nicely during the quarter and despite the companion market having some headline issues with vet visits, we've continued to see good sales growth and in the production market the herd count. Remains near record lows, but you know given the high price of cattle producers want to make sure they keep their cattle healthy and and so we have seen very good results there and. It's probably been driven by I think just really good execution by our animal health team the. Last few quarters, and then with regard to your other question on major contracts coming up for renewal. Don't have any large upcoming renewals in the near term.

Great quarter on both our companion and production animal businesses.

Grew very nicely during the quarter and.

Despite the companion market, having some headline issues with vet visits we've continued to see good sales growth and in the production market the herd count.

Jim Cleary: we've continued to see good sales growth and in the production market the herd count remains near record lows, but you know given the high price of cattle producers want to make sure they keep their cattle healthy and so we have seen very good results there and it's probably been driven by, I think just really good execution by our animal health team the last few quarters, and then with regard to your other question on major contracts coming up for renewal, we don't have any large upcoming renewals in the near term.

Remains near record lows, but you know given the high price of cattle producers want to make sure they keep their cattle healthy and and so we have seen very good results there and.

James Cleary: And so we have seen very good results there, and you know, it's probably been driven by, I think, just really good execution by our animal health team, the last few quarters. And then with regard to your other question on major contracts coming up for renewal, we don't have any large upcoming renewals in the near term.

It's probably been driven by I think just really good execution by our animal health team the.

Last few quarters, and then with regard to your other question on major contracts coming up for renewal.

Don't have any large upcoming renewals in the near term.

Yeah.

Steve Collis: Thank you. That concludes our questions. I'll just make a closing statement. Cencora is proud to finish our first quarter as Cencora, and we move into fiscal year 2024 with strong momentum. We are executing, as we always have, to deliver results. We are investing in our business to differentiate our capabilities and deliver long-term growth. We are at the center of healthcare and the care, and the care of the supply chain, the core of the supply chain, including, you know, very closely tied to these innovative products that we're so proud to represent in the marketplace. Our fundamentals are strong and our strategy is sound, as we are well-positioned to continue delivering value for our stakeholders in fiscal year 2024 and beyond. Thanks for your time and attention today.

Steve Collis: Thank you, that concludes our questions I'll, just make a closing statement, Cencora is proud to finish our first quarter as Cencora and we move into fiscal year '24 with strong momentum, we are executing, as we always have to deliver results, we are investing in our business to differentiate our capabilities and deliver long term growth, we are at the center of health care, and the care of the supply chain, the core of the supply chain, including very closely tied to these innovative products that we so proud to represent in the marketplace, our fundamentals are strong and our strategy is sound as we are well positioned to continue delivering value for all stakeholders in fiscal year '24 and beyond, thanks for your time and attention today.

Syncora is proud to finish our first quarter as second quarter, and we move into fiscal year 'twenty four with strong momentum we.

We are executing as we always have to deliver results. We are investing in our business to differentiate our capabilities and deliver long term growth.

Steve Collis: we are at the center of health care, and the care of the supply chain, the core of the supply chain, including very closely tied to these innovative products that we so proud to represent in the marketplace, our fundamentals are strong and our strategy is sound as we are well positioned to continue delivering value for all stakeholders in fiscal year '24 and beyond, thanks for your time and attention today.

Are at the center of health care, and the K and the care of the supply chain the core of the supply chain, including.

Closely tied to these innovative products that we so proud to represent in the marketplace. Our fundamentals are strong and our strategy is sound as we are well positioned to continue delivering value for all stakeholders in fiscal year 'twenty four and beyond thanks for your time and attention today.

Operator: Thank you, everyone, for joining us today. This concludes our call, and you may now disconnect your lines.

Operator Emily: Thank you everyone for joining us today. This concludes our call and you may now disconnect your lines.

Yeah. Yeah. Yeah. Yeah. Yeah. Okay. Okay.

Yeah. Yeah. Yeah. Yeah. Okay. Okay.

Yeah. Yeah. Yeah. Okay. Okay.

Yeah. Yeah. Okay. Okay.

Yeah. Okay. Okay.

Okay. Okay.

Okay.

Q4 2023 Cencora Inc Earnings Call

Request a DemoDemo

COR

Cencora

Earnings