Cencora net worth in 2024 is an intriguing indicator of its financial power. The company’s revenue, segmented between U.S. and international operations, significantly drives this worth.
Today, we’ll explore how Cencora generates its revenue, focusing on U.S. and international segments, gross profits, and growth expectations.
This analysis is brought to you by Ando Money, aiming to provide clear, concise insights into Cencora’s financial strength.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Cencora, Inc. |
| Full Name | Cencora, Inc. |
| Industry | Pharmaceutical solutions |
| Traded as | NYSE: COR |
| ISIN | N/A |
| Founded | 2001 |
| Founders | N/A |
| Country/Territory | United States |
| Headquarters | Conshohocken, Pennsylvania |
| Chief Executive Officer | Bob Mauch |
| Number of Employees | 46,000+ |
| Market Cap | $43.44 billion |
| Total Assets | $66.77 billion |
| Total Equity | $1.06 billion |
| Revenue | $74.2 billion (Q3 2024) |
| Net Income | $483 million (Q3 2024) |
What is the Net Worth/Market Cap of Cencora in 2024?
Cencora’s market cap in 2024 stands at $43.44 billion, placing it among some of the most notable companies in its industry. To put this in perspective, the company’s value showcases its competitiveness and strong position in the pharmaceutical sector.
For readers interested in how Cencora ranks compared to others in this space, here are a few competitors and partners:
- AmerisourceBergen
- McKesson Corporation
- Cardinal Health
- OneOncology
- PharmaLex
- Good Neighbor Pharmacy
- Fortune 500
- Walgreens Boots Alliance
- Express Scripts
- OptumRx
For more on some of the richest companies in the world, visit this page.
Cencora Financial Performance Overview
How Does It Generate Its Revenue?
Cencora derives its revenue from two major segments: U.S. Healthcare Solutions and International Healthcare Solutions. The former, generating $67.2 billion in the third quarter of 2024, is the primary contributor.
This is largely driven by sales in diabetes and weight loss products, specialty products provided to physician practices, and a focus on health systems.
Meanwhile, the International Healthcare Solutions brought in $7.1 billion, showing steady performance but requiring further focus on growth to match domestic levels.
The Role of U.S. Healthcare Solutions in Driving Revenue
The U.S. Healthcare Solutions segment is essential to Cencora’s success.
This division experienced an impressive 12.2% increase in revenue in Q3 of 2024, led by increased unit volumes and sales of products for diabetes and weight loss.
Specialty drugs for physician practices and health systems also significantly contributed. These categories are central to Cencora’s strategy of addressing chronic conditions while maintaining stable relationships with healthcare providers.
The Contribution of International Healthcare Solutions to Revenue
While the U.S. segment shines brightly, the International Healthcare Solutions part of the business was stable at $7.1 billion in Q3 2024, reflecting minimal change compared to the previous year.
Factors such as IT expenses in Europe and operational adjustments led to flat growth. However, positive contributions came from the Canadian market, which provides a hopeful perspective for future performance.
Understanding Gross Profit and Its Impact on Financial Performance
Gross profit is another crucial factor in understanding Cencora’s financial success.
In Q3 2024, gross profit reached $2.41 billion, up by 6.5% from the prior year. It is interesting to note that this increase was due to rising profits in the U.S.
Healthcare Solutions segment, despite challenges such as lower gains from antitrust litigation settlements.
The GLP-1 class products, particularly those labeled for diabetes and weight loss, presented lower margins, which slightly impacted the overall gross profit margin.
Operating Income: A Key Indicator of Financial Success
Operating income, an indicator of the company’s true profitability, came in at $672 million for Q3 2024.
However, it’s essential to look beyond the figure. Litigation, including opioid-related expenses, and increasing costs in distribution, selling, and administration continue to pose challenges to this metric.
Even though Cencora’s operating income remained nearly flat compared to previous periods, the company is taking steps to manage these costs better.
The Role of Operating Expenses in Financial Outcomes
Operating expenses reached $1.7 billion in the third quarter of 2024.
A 9.0% increase compared to the same quarter in the previous year was noted, mainly driven by higher litigation-related expenses and administrative costs that support revenue growth.
These expenses, particularly litigation and opioid-related expenses, underscore the complexity of operating in the pharmaceutical industry, where legal risks are substantial.
Key Financial Metrics Influencing Cencora’s Revenue
Metrics such as gross profit margin and operating income margin serve as barometers for Cencora’s overall health.
For Q3 2024, the gross profit margin was 3.25%, reflecting some challenges, while the operating income margin was 0.91%, slightly declining from the previous year.
The effective tax rate stood at 22.4%, which influenced the net income to $483 million, showing that taxation remains a notable impact on the final financial outcome.
Analyzing Segment Performance for Revenue Contribution
Segment analysis reveals the strengths and challenges across the board. The U.S. Healthcare Solutions saw an increase in operating income to $698 million in Q3 2024, up by 9.9%.
Meanwhile, the International Healthcare Solutions saw a slight decrease in operating income, down to $179 million, indicating the impact of various operational challenges.
By closely monitoring these segments, Cencora aims to ensure that each contributes positively to overall performance.
Future Outlook: Revenue Growth Expectations for Fiscal Year 2024
Looking ahead, Cencora has increased its forecasted adjusted diluted EPS for fiscal 2024 to between $13.55 and $13.65.
Revenue growth is anticipated to be approximately 12%, led by expectations of continued strong business performance in the U.S. segment and improved efficiency in managing net interest expenses.
The outlook is positive, with focus areas identified for potential revenue maximization and expense reduction.
FAQs About Cencora
How Does Cencora Generate Most of Its Revenue?
Cencora generates most of its revenue from U.S. Healthcare Solutions, contributing $67.2 billion in Q3 2024, largely through diabetes and specialty products.
What Is the Contribution of the International Segment?
The International Healthcare Solutions contributed $7.1 billion in Q3 2024, showing flat performance compared to the prior year but supported by positive trends in Canada.
How Does Litigation Affect Cencora’s Financial Performance?
Litigation, especially related to opioid matters, has significantly influenced Cencora’s operating expenses, adding complexity to maintaining growth in operating income.
What Factors Impacted Operating Income in Q3 2024?
Operating income of $672 million in Q3 2024 was primarily affected by increased operating expenses, including litigation costs and distribution expenses supporting growth.
How Did Gross Profit Change in Q3 2024?
Cencora’s gross profit rose to $2.41 billion in Q3 2024, reflecting a 6.5% increase due to a rise in healthcare product sales despite challenges in profit margins.
Conclusion
Cencora’s financial journey in 2024 highlights its growth potential and market strength. For those interested, I encourage you to leave comments, share your thoughts, or explore more content on Ando Money.
