ABJ - December 21 - Walgreens announced earnings and sales results for the first quarter of fiscal year 2012 ending November 30.

Net earnings were $554 million, a 4.5 per cent decrease from $580 million in the same quarter a year ago. Net earnings per diluted share for the quarter increased 1.6 per cent to 63 cents, compared with 62 cents per diluted share one year ago.

Compared with the prior year’s quarter, the delay in the cough/cold and flu season impacted net earnings per diluted share by one cent, while the strategic decision to no longer be part of the Express Scripts, Inc. pharmacy provider network as of Jan. 1, 2012 cost one cent per diluted share in comparable pharmacy sales and one cent per diluted share in related expenses.

Total gross profit dollars increased $159 million, or 3.2 per cent, compared with the year-ago quarter, with gross profit margins decreasing 0.4 percentage points versus the year-ago quarter to 28.1 as a percentage of sales. The decline was driven by retail pharmacy margins which saw a reduction in reimbursement rates, while front-end margins remained steady.

Moving forward, Walgreens expects an increase in gross profit growth from new generic drug introductions, including generic Lipitor, during the second half of the fiscal year compared with what was seen in the first quarter.