Advertisement

Profits up but sales down at Alliance Boots

The owner of the Boots cosmetics and pharmacy chain, Alliance Boots, achieved a double-digit increase in underlying profits in the year to March 31st, but said that sales slipped due to weakness in the euro.

The owner of the Boots cosmetics and pharmacy chain, Alliance Boots, achieved a double-digit increase in underlying profits in the year to March 31st, but said that sales slipped due to weakness in the euro.

Alliance Boots labelled 2012/13 as a "transformational year" for the group due to its new partnership with US drugstore giant Walgreens after the American chain bought a 45% stake last August. Walgreens has the option to fully take-over Alliance Boots in 2015.

Advertisement - Article continues below

Meanwhile, the company launched a new partnership with AmerisourceBergen, one of the largest pharmaceutical wholesalers in the US, in March which will see the parties (including Walgreens) "collaborate on global supply-chain opportunities".

Underlying profit after tax rose by 12.7% to £805m in the year to March 31st as both divisions, Pharmaceutical Wholesale and Health & Beauty, delivered "good" growth.

Revenue however totalled £22.4bn, down 2.6% due to the strength in sterling against other currencies, particularly the euro. This was up 0.6% on a constant currency basis.

The firm's largest division, Pharmaceutical Wholesale, which accounts for nearly three-quarters of group sales, saw reported revenue slip by 2.7% to £16.4bn.

Reported revenues in the Health & Beauty division - which is mainly comprised of its operations in the UK - were down 2.5% at £7.48bn mainly due to a number of important branded medicines coming off patent protection and being replaced by lower-priced generic versions. This offset strong sales of non-prescription medicines, beauty and toiletries.

"Against the backdrop of this major corporate activity, and the challenging conditions across our markets, we have again delivered a double-digit growth in underlying profit after tax," said Chairman Stefano Pessina.

"We continue to be confident about our prospects and ability to pursue profitable growth, organically, from our synergy programmes and through international expansion," he said.

Advertisement
Advertisement

Recommended

Visit/investments/investment-strategy/601044/broker-safety-your-questions-answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Visit/investments/investment-strategy/600861/how-demographics-affects-stock-valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Visit/investments/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Visit/investments/stockmarkets/600634/why-investors-should-be-cautiously-bullish-for-2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Visit/investments/property/601606/house-prices-crash-uk-property-prices-falling-where-next
Property

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020
Visit/economy/inflation/601584/the-end-of-the-bond-bull-market-and-the-return-of-inflation
Inflation

The end of the bond bull market and the return of inflation

Central bank stimulus, surging post-lockdown demand and the end of the 40-year bond bull market. It all points to inflation, says John Stepek. Here’s …
30 Jun 2020
Visit/investments/investment-strategy/601567/have-small-companies-lost-their-edge
Sponsored

Have small companies lost their edge?

SPONSORED CONTENT – The tectonic plates beneath the modern investing landscape appear to have started moving in new directions
26 Jun 2020