Walgreens 2010 Annual Report Download - page 4

Fiscal 2010 was a year of substantial progress in the transformation of Walgreens as the Company marked
36 consecutive years of record sales. Despite a continuing weak economy, we achieved strong growth,
controlled our costs and created new and innovative ways to better serve customers and patients in the
communities where they live and work. Throughout the year, we took significant steps in advancing the
transformation launched in 2008 to achieve our goal of being America’s most trusted and convenient
provider of consumer goods and services, and pharmacy, health and wellness solutions.
The Company recorded net sales of $67.4 billion, an increase of 6.4 percent. Gross profit dollars grew by
$1.4 billion despite continued headwinds from the economy and the slowdown in new generic drug intro-
ductions. And, we made significant progress in improving productivity and streamlining our cost structure.
Our earnings per share (EPS) for the year increased 5 percent to $2.12, and in the fourth quarter of the
year, our EPS increased 11.4 percent compared with the previous year’s fourth quarter.
Strong $3.7 billion in cash flow from operations and record $2.7 billion in free cash flow enabled us
to return a record $2.2 billion to shareholders through dividends and share repurchases, including
a dividend increase of more than 27 percent announced in July 2010.
This represented the 35th consecutive year that Walgreens has increased its dividend, and over the past
eight years the Company’s dividend has grown at a compound annual growth rate of nearly 22 percent.
Key milestones achieved
Our Company achieved a number of important milestones in the year including:
•filling a record 778 million prescriptions, an increase of 7.5 percent
• significantly increasing our market share of retail pharmacy prescriptions from
18.9 percent to 19.5 percent
•administering more than 7 million seasonal and H1N1 flu shots through the nation’s
largest retail network of certified pharmacists and clinicians
• acquiring Duane Reade, the largest acquisition in Walgreens history – establishing
Walgreens as a leader in the New York City metropolitan area, the nation’s largest
drugstore market, and
•opening or converting over 1,500 stores with our new Customer Centric Retailing (CCR)
format, to enhance our customers’ shopping experience.
Gregory D. Wasson (right)
President and
Chief Executive Officer
Alan G. McNally
Chairman of the Board
Letter to Shareholders
Page 2 2010 Walgreens Annual Report
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