Boots gets profits boost ahead of merger

Health and beauty chain Boots geared up for its merger with Alliance UniChem by posting annual profits slightly ahead of expectations today.

Boots said profits for the year were £401m (€591m), down 9.8% compared with last year and just ahead of City forecasts of £400.6m (€591m).

Part of the reason for the downturn is the absence of two months trading from its Strepsils healthcare business BHI, which it sold for £1.9bn (€2.8bn).

Revenue from Boots The Chemists lifted 1.7% in difficult trading conditions to £4.73bn (€7bn) for the year to March 31.

The Nottingham, England-based company, which operates from 1,400 outlets in the UK and 40 in Ireland, has faced a fierce battle with supermarkets in the health and pharmacy sector – a factor that prompted it to merge with wholesaler and pharmacies owner Alliance. The tie-up is due to be completed by July.

Boots plans to open a further 10 new outlets in Ireland in the next few years. The company employs 1,200 in Ireland and says it contributes more than €165m to the Irish economy through the sourcing of goods and services for its Irish and UK businesses.