Chemist chain kicks sex toy decision to touch

BOOTS has made no decision about the introduction of Durex Play, a sex toy range, to its Irish chain, it said yesterday.

Earlier reports said the group was about to bring the sex aids to its stores in Ireland and Britain.

In its first official comment, the chemist chain said the matter of sex toys was still at the early stages of consideration. Boots also confirmed it achieved sales of £200m (€287m) in the Irish market in the six months to September 30, 2004.

Boots yesterday posted lower interim pre-tax profits for the period to September 30, 2004.

Overall profits fell to £198.8 (€285.4m), a sharp decline from the £267.6m posted for the same time last year and slightly below market consensus forecasts of £205m. Boots’ performance was hit as it felt the impact of a poor summer and stiff competition.

Recently, the group announced its 18th shop in the Dublin area. This is planned for Rathmines and will open before Christmas.

Meanwhile, the results show that first-half like-for-like sales at its key Boots the Chemist division rose by almost 5% while the interim dividend has been increased to 9.1p a share.

Key points:

Irish sales hit £200m.

Boots The Chemists sales rose 4.9%, 3.8% like for like with volumes up 6.8%.

Boots Healthcare International sales up 4.8% in local currency with growth from all major brands.

Operating profit before exceptional items down 23.6% to £204.5m.

£52m increase in group capital expenditure to £140m.

22% reduction in pre-exceptional earnings per share to 18.1p (23.1p).

9.1p interim dividend up 3.4%.

£178m returned to shareholders through share buyback and on track to deliver £350m by year end.

“This is a demanding year of change and investment. We have made progress with customers responding positively and sales growth continuing,” said chief executive Richard Baker.

“The actions we are taking have impacted profit, but are necessary to deliver a sustainable long-term return for shareholders,” he said.