Walgreens Boots Alliance has recorded some improvements in its losses, but management said the company would take more time to deliver meaningful growth.

For the second quarter ended February 28, operating loss was $5.6 billion compared to $13.2 billion in the year-ago period. Net loss reduced 51.7 per cent to $2.9 billion.

Sales increased 4.1 percent to $38.6 billion, driven by growth in the US retail pharmacy and international segments.

The company noted that operating cash flow was negatively impacted by $969 million of legal payments primarily related to Everly and opioid-related settlements. Free cash flow was negative $418 million, a $192 million improvement compared with year-ago quarter. 

CEO Tim Wentworth said the results reflect disciplined cost management and improvement in US healthcare, partially offset by weaker front-end results in US retail pharmacy. 

“We remain in the early stages of our turnaround plan, and continue to expect that meaningful value creation will take time, enhanced focus and balancing future cash needs with necessary investments to navigate a changing pharmacy and retail landscape,” Wentworth added.

Walgreens Boots Alliance did not provide full-year guidance given the pending sale of its business to entities affiliated with Sycamore Partners.

The $10 billion transaction, if completed, will end nearly a century of trading on public markets for the US pharmacy giant.