Boots sales push on through consumer spending slow down
Alliance Boots, the high street chemist, reported a rise in profits after a strong performance by its wholesale pharmaceuticals business helped it weather the slowdown in consumer spending. This report from the Telegraph.
Pre-tax profit rose to £637m in the year to the end of March, up from £460m the previous year. Revenue increased 15.1pc to £20.2bn.
However like-for-like sales in the UK health and beauty division were up just 0.5pc, compared to a 3pc increase on that basis last year.
“Looking to the year ahead, we are planning for consumer demand to be subdued and expect governments to continue to seek ways to contain growth in healthcare expenditure,” said Stefano Pessina, executive chairman of Alliance Boots.
The pharmaceuticals wholesale division by contrast, saw revenue rise 23.6pc to £13.9bn. Trading profit added 36.2pc to £320m.
Boots was taken private in 2007 by Mr Pessina and private equity firm KKR, at the height of the debt-fuelled takeover boom.
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