Walgreens Boots reports better than expected profits

Published: 6-Apr-2016

Click & collect service boosts sales in the UK

Walgreens Boots Alliance has shared its financial results for the first six months of fiscal 2016 and the second quarter of the year, which ended on 29 February.

The company said that overall retail sales in the US decreased 0.3% in the second quarter, which it attributed to cough and cold products declining in an unusually warm winter. It also reported strong gift set sales and said that company brands, including No7, had performed well.

Adjusted gross profit in the US grew by $162m, or 2.8%, to $6bn compared to the same quarter last year. International retail sales increased 2.1% with growth driven by Boots in the UK and Ireland. The store reported strong performances from is “Order & Collect” service as well as seasonal categories.

Stefano Pessina, Executive Vice Chairman and CEO at Walgreens Boots Alliance, commented: “I am pleased with how we are working across the company to transform our business and position ourselves for success in rapidly changing markets. In addition, we continue to make good progress in the quarter in reducing costs and establishing more efficient working practices, which contributed to overall adjusted earnings growth.”

Walgreens Boots Alliance is currently in the process of purchasing smaller rival chain Rite Aid. The company said that it still expects to close this deal in the second half of 2016. Last year, the company announced that it would be cutting 700 jobs in the UK as it sought to “address the rapidly changing needs” of its customers.

Pessina added: “Looking ahead, we remain on track to achieve our expectations for this fiscal year, we work to mitigate lower pharmacy reimbursement rates and challenging retail sales environment.”

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