Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
AmerisourceBergen Corp., consolidated income statement
US$ in thousands
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).
The financial data reveals a pattern of steady revenue growth over the six-year period under review. Revenue increased consistently from approximately $153.1 billion in 2017 to $238.6 billion in 2022, reflecting robust expansion in sales volume or pricing power. Cost of goods sold also grew in parallel, rising from about $148.6 billion in 2017 to $230.3 billion in 2022, which maintained the overall scale of operations but exerted pressure on gross profit margins.
Despite increasing costs, gross profit demonstrated a positive trajectory, climbing from roughly $4.5 billion in 2017 to over $8.3 billion by 2022. This indicates some improvement in operational efficiency or product mix over time. However, the distribution, selling, and administrative expenses increased significantly, especially in the last two years, rising from $2.1 billion in 2017 to nearly $4.8 billion in 2022, which impacted operating profitability.
Depreciation and amortization expenses showed minor fluctuations but generally increased, with depreciation rising from $237 million in 2017 to $387 million in 2022, and amortization experiencing irregular movements ending at $307 million in 2022. Notably, litigation and opioid-related expenses peaked sharply in 2020 at over $6.7 billion, a significant one-time cost likely related to legal settlements, before substantially decreasing in subsequent years.
Additional non-recurring expenses such as acquisition, integration, restructuring expenses, goodwill impairments, and asset impairments appeared sporadically. For example, acquisition-related costs were absent in early years but rose modestly to around $183 million by 2022. Goodwill impairments occurred intermittently and were relatively moderate, while asset impairments were significant in 2019 and 2020 but minimal afterward.
Operating expenses reached a peak of over $10.3 billion in 2020, driven mainly by exceptional litigation and impairment losses, before reducing to about $5.9 billion in 2022. Consequently, operating income swung dramatically from positive figures around $1 billion in early years to an operating loss of approximately $5.1 billion in 2020, followed by a recovery to $2.4 billion in 2022.
Other income and losses remained minor in comparison to core operating metrics, fluctuating modestly throughout. Net interest expense showed a gradual increase, moving from $145 million in 2017 to $211 million in 2022, which slightly compressed net profitability.
Income before taxes mirrored operating income trends, turning from gains around $900 million to a loss exceeding $5.2 billion in 2020, then recovering to approximately $2.2 billion in 2022. Income tax expense was volatile, with considerable tax benefits recorded in 2018 and 2020 but tax expenses resuming in 2021 and 2022. This volatility likely reflects the impact of large non-recurring items and tax adjustments.
Net income displayed substantial variation, with positive results in most years except 2020, where it plunged to a loss of $3.4 billion, paralleling the extraordinary charges incurred. In the most recent years, net income returned to a positive trend, reaching approximately $1.7 billion in 2022—above the 2017 levels and reflecting operational recovery and controlled expenses.
Noncontrolling interests showed minor impact except for fluctuations in 2018 and 2022. Net income attributable to AmerisourceBergen Corporation closely mirrored total net income figures, affirming that the majority of results derive from the parent entity.
In summary, the company experienced consistent revenue growth with improving gross profits but faced significant volatility in operating income and net income, largely due to exceptional litigation-related expenses and asset impairments around 2020. Following these disruptions, operational and financial performance improved markedly, with operating income and net income recovering to positive levels by 2022. Cost management in selling, administrative, and interest expenses remains critical for sustaining profitability amid ongoing expansion.
- Revenue Trend
- Consistent growth from $153.1B in 2017 to $238.6B in 2022.
- Cost of Goods Sold
- Increased proportionally with revenue, maintaining operational scale.
- Gross Profit
- Growth from $4.5B to $8.3B, indicating improved margin or mix.
- Operating Expenses
- Surge in 2020 due to litigation; reduction thereafter but higher distribution and administrative costs.
- Litigation and Opioid-Related Expenses
- Exceptional peak at $6.7B in 2020, substantially impacting profitability.
- Operating Income
- Fluctuated from $1.1B positive to $5.1B loss in 2020, then recovered.
- Net Income
- Generally positive except for a significant loss in 2020, with recovery to $1.7B in 2022.
- Interest and Other Financial Items
- Net interest expense gradually increased, marginally pressuring profits.
- Tax Expenses
- Highly variable, influenced by non-recurring items.