Boots unveils profits slide

High street pharmacist Boots today reported a 17% fall in annual pre-tax profits as restructuring costs, including exiting loss-making businesses, took their toll.

The company has been reshaping itself to concentrate on core businesses Boots the Chemist and Healthcare International, the division behind consumer brands including Nurofen, Strepsils and Clearasil.

Reporting results for the year to March 31, Boots said its turnaround strategy had seen the company maintain or grow market share in all its health and beauty categories, helping stem the recent decline in sales.

Boots has also invested in improving its stores, boosting its customer offering with more staff, and revamping and supporting its own brands.

Chairman John McGrath said: “This has been a year of progress and significant change and we have also been investing for the future.”

The recent shake-up saw the departure of chief executive Steve Russell who was with the firm for 36 years, including three in the top job.

He is being replaced by Richard Baker in September after almost eight years with Asda.

Boots’ restructuring has seen the company sell the Halfords car maintenance chain as well as closing Pure Beauty concept stores and the Wellbeing Services business with its 12 standalone shops.

Boots announced the end of Wellbeing Services in March, with the loss of 700 jobs, after pledging to focus on its core high street business.