Recently, Rite Aid called its new corporate offices at Philly Navy Yard its enterprise headquarters, raising some eyebrows. Yesterday, the company announced its fiscal second quarter 2022 financial results which included a 2.2% in revenues to $6.11 billion and a net loss of $100 million.
Rite Aid is relocating its corporate offices from Camp Hill, Cumberland County, to the Philadelphia Navy Yard, where it is creating an office space that caters to its new corporate strategy of remote work.
Revenues from continuing operations for the quarter were $6.11 billion compared to revenues from continuing operations of $5.98 billion in the prior year’s quarter. The 2.2 percent increase in revenues was driven by growth at the Retail Pharmacy Segment, partially offset by a decline at the Pharmacy Services Segment.
Net loss from continuing operations was $100.3 million compared to last year’s second quarter net loss from continuing operations of $13.2 million.
Pharmacy Services Segment (Elixir) revenues were $1.9 billion for the quarter, a decrease of 6.9 percent compared to the prior year quarter. The decrease in revenues was primarily the result of a decrease in membership in the PBM business and a decrease in Elixir Insurance membership.
The current year’s performance benefitted from increased gross profit resulting from improvements in the Company’s discount card business and good network management, partially offset by the impact from the loss in lives and cost pressures in the Elixir Insurance business. Prior year’s Adjusted EBITDA was negatively impacted by a reduction in gross profit related to a change in rebate aggregator at the MedTrak subsidiary.
Rite Aid is working to improve Elixir’s results by reducing costs and improving its leverage ratio, including its new remote first approach. Elixir, with 3.2 million lives under management, recently appointed Lance Neil as new chief operating officer.
Elixir’s specialty revenue increased 8.2% during the quarter and are the company is looking to select a single rebate aggregation partner for health plan and PBM business to improve pricing.
Takeaway: Rite Aid continues to implement its RxEvolution strategy using its pharmacists to engage consumers