Alliance Boots profit boosted by international growth
Alliance Boots, owner of the Boots pharmacy chain, saw its full year trading profit increase by 12.4% to £1.2 billion as international expansion drove growth.
In the year to 31 March revenue rose 18.4% to £23 billion while group EBITDA increased by 10.2% to £1.44 billion.
At Boots UK, profits were 5.2% higher at £750 million although sales declined by 0.3% to £6.37 billion. This was driven by a 1.6% decline in dispensing and related income to £2.37 billion due to reductions in dispensing reimbursement rates set by the Government. Retail revenue increased by 0.8% on a like-for-like basis.
Executive Chairman Stefano Pessina said: "In the coming year, we expect the economic environment to remain difficult with continuing pressure on both consumer and governmental expenditure."
The company said it was focusing strongly on corporate development in support of its strategy to enter new geographical markets and to expand its presence in existing markets through acquisitions and strategic partnerships.
Pessina added: "We are confident about our future prospects and ability to pursue profitable growth, both organically and through further international expansion. This will be supported by our strong operating cash flow and secure funding arrangements, which will enable us to continue to invest while at the same time reducing net borrowings."