Boots profits climb to €24.7m

Pre-tax profits at the Irish arm of pharmacy retailer, Boots last year increased by 23.5% to €24.7m as revenues soared.

New accounts show Boots Retail (Ireland) Ltd recorded the increase in profits after revenues increased sharply by 52%, going from €298.35m to €453.2m.

The rise in revenues is partly explained by the period covering 17 months to the end of August 31 last compared to the prior 12-month period.

The accounts show the firm paid a dividend of €31m last year and this followed a dividend payout of €15.4m in 2014.

According to the directors’ report “the company delivered strong performance in the period as a result of new store openings in the current and prior period, good retail growth, partially offset by lower dispensing reimbursement rates”.

The firm last year opened five new stores and closed one.

Since the end of last August, the company also opened a further three stores.

The directors state that its strong retail growth included a significant boost from its dedicated Irish website boots.ie, which was launched in June 2013.

The directors confirmed that the firm recorded exceptional costs of €600,000 related to the settlement of the defined benefit scheme that was closed down during the prior period with a final settlement of €1.5m paid as of March 31, 2015.

The report also states that business also incurred €200,000 of exceptional costs in relation to a re-organisation of the company.

The profit last year takes into account non-cash depreciation costs of €8.2m and non-cash amortisation costs of €5.8m.

The accounts show that the firm’s operating lease rentals last year increased by more than €10m, going from €23m to €33.4m.

Numbers employed by the firm last year increased from 1,528 to 1,603 with staff costs going from €55.15m to €85.53m.

Emoluments to directors last year jumped from €247,000 to €728,000.

The firm’s shareholder funds last year totalled €108.28m made up of €102.99m in share premium and €5.28m in accumulated profits.

The company’s cash pile increased during the year from €4m to €7.8m.

The firm’s distribution costs totalled €164.7m, while administrative expenses came to €27.23m.


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