Boots plans expansion despite profit fall

BOOTS is planning more store openings in Ireland in the coming year, despite seeing both its Irish-based profits and revenue fall in its latest financial year.

The company, which operates 55 shops here, said yesterday that its Irish operations generated revenues of £235 million (€269m) during the year to the end of March.

While up by 1.1% on a constant currency basis, this figure was down on a like-for-like basis by 3.9%.

That fall, according to management, reflected “the fragile state” of the Irish economy.

“Dispensing growth was excellent and well ahead of the market. Profits were lower, due to the decline in like-for-like revenue and lower gross margins,” the company added.

Outside its core markets of Britain and Ireland, Boots trades in a number of countries across Europe, the Middle East and the Far East. However, on the retail side, only those operations in Ireland suffered a profit fall.

However, the company also said its Irish customers are being attracted to its loyalty schemes, with a 30% year-on-year rise (to 700,000 people) in Boots advantage card holders.

Boots opened four stores in Ireland during the period in question including its latest flagship outlet on Cork’s Half Moon Street, and plans more in its current fiscal year.

“Further openings [in Ireland] are planned, as we secure attractive store locations on competitive lease terms,” the company said, without specifying how many more openings are expected or preferred locations.

On a group basis, parent company Alliance Boots saw total revenue rise by 9.6% to £22.5 billion last year, and underlying after-tax profits more than double to £602m.

In its international pharmaceutical wholesale division — which doesn’t have a presence in Ireland — Boots had a 17.2% rise in trading profit to £252m.

Overall, Alliance Boots chief executive, Andy Hornby, called the group figures “a particularly good performance, given the challenging economic conditions we faced throughout the year”.