May 16, 2013

Alliance Boots annual profit up 6.1% to £1.2bn

UK-based drugstore major Alliance Boots has reported 6.1% increase in profits to £1.2bn for the year ended 31 March 2013 .

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UK-based drugstore major Alliance Boots has reported 6.1% increase in profits to £1.2bn for the year ended 31 March 2013 .

In the UK, profits surged 8.8% to nearly £813m compared to the previous year

Post-tax profits were £805m, 12.7% up from the profits registered in the previous year.

Revenues, however, were down by 2.6% to £22.4bn, while at constant currency revenues were 0.6% up.

Commenting on the results, Alliance Boots executive chairman Stefano Pessina remarked that the fiscal 2013 has been a transformational for the retailer due to its strategic alliance with Walgreens, alongside joint agreement to partner with
AmerisourceBergen.

"Against the backdrop of this major corporate activity, and the challenging conditions across our markets, we have again delivered a double digit growth in underlying profit after tax," added Pessina.

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"We continue to be confident about our prospects and ability to pursue profitable growth, organically, from our synergy programmes and through international expansion."

Among its sub-categories, health and beauty products accounted for profits of £865m, reflecting a year-on-year growth of 6.8%.

Wholesale operations contributed £435m to its total profits.

Alliance Boots has reduced its net borrowings to £5.89bn from £7.02bn in the previous year.

"In a world where globalisation is increasing at a pace, our transformational partnerships put us together in a unique position to become the clear world leader in both pharmacy and pharmaceutical wholesale," stated Pessina.

"I truly believe that we have the brands, intellectual capital and, most importantly, the management expertise to create value for our stakeholders across the world for many years ahead."