The parent of high street chemist Boots warned of “subdued” demand in the year ahead despite profits soaring by more than 14% in the past year.
Alliance Boots said group revenues were up 15% to £20.2bn in the year to 31 March, boosted by overseas acquisitions. In the UK, like-for-like sales at its Boots high street business were up 1.2%.
“Alliance Boots continues to perform strongly, delivering a double digit growth in trading profit through a combination of organic growth and acquisitions, while at the same time reducing net borrowings,” said executive chairman Stefano Pessina.
As a result of the moves, the Pharmaceutical Wholesale Division witnessed a revenue rise of 26.1% in constant currency and a 36.2% leap in trading profit.
“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. In spite of this, we are confident about our future prospects both in the short and longer term,” said Pessina.
“This comes from having a clear strategy, the right values and strong financial discipline.”
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