Weight-loss services sales helps Boots Ireland to record revenues of €598m

Pharmacy revenue increased by 9% to €79.6m and comparable pharmacy revenue increased by 9.4%, mainly due to volume growth in relation to Government schemes and increased services revenue driven by weight-loss services, new accounts show

The directors said retail revenues made up 86.7% of total revenues.

Increased revenues from weight-loss services contributed to revenues at the Irish arm of pharmacy retail giant Boots increasing by 3% to a record €598.46m last year.

New accounts filed by Boots Retail (Ireland) Ltd show despite the record revenues of €598.46m, pre-tax profits remained flat at €37.8m in the 12 months to the end of August last.

The company closed one outlet during the year, bringing the store network to 94.

No dividends were paid out last year or since year-end after the company paid out dividends of €29m in 2024 after paying a dividend of €48.2m in 2023.

The directors said retail revenues made up 86.7% of total revenues, with pharmacy revenues making up the remaining 13.3%.

The directors said comparable retail revenue increased by 3.7% as a result of strong online growth, partially offset by Terminal 1 Dublin Airport store closure.

They said pharmacy revenue increased by 9% to €79.6m and comparable pharmacy revenue increased by 9.4%, mainly due to volume growth in relation to Government schemes and increased services revenue driven by weight-loss services.

The directors said operating profit increased by 6.8% to €42.5m “primarily driven by stronger sales performance across retail and pharmacy, partially offset by a rise in cost of sales and distribution costs”.

The company enjoyed a post-tax profit of €31.9m, after incurring a corporation tax charge of €5.9m.

On the risks facing the company, the directors said the impact of the current global cost pressures had resulted in high inflation rates in the Republic of Ireland and globally, and this has been exacerbated by the ongoing global conflicts.

They said “these factors have contributed to a cost-of-living crisis within the Republic of Ireland which could impact various stakeholders as well as the business”.

They state that “the current macroeconomic environment including the cost of living crisis has not caused a significant impact on the business to date however there is some impact on the short term outlook for growth and an increase in cost of sales and operational overheads”.

Remuneration paid to directors last year totalled €1m and the highest paid director received €491,000, made up of €422,000 in pay, €31,000 under long-term incentive schemes, and €38,000 in pension contributions.

The post-tax profits resulted in shareholder funds increasing from €134.46m to €166.36m that included accumulated profits of €63.36m.

Cash funds increased from €6.9m to €8.6m.

Last week, it was reported Australian pharmacy group Sigma Healthcare which had eyed a takeover of the global business of Boots had pulled out of talks, saying the potential $10bn (€8.6bn deal did not match its objectives.

Canada’s Weston family has also held talks over a deal for the UK chemist chain, which is owned by private equity firm Sycamore Partners.