LONDON — Health and beauty retailer and pharmaceuticals wholesaler Alliance Boots on Monday reported net profits for the year ended March 31 of 101 million British pounds, or $173.9 million at average exchange, up from 10 million pounds, or $17.2 million a year ago.
Trading profits, which the firm defines as profit from operations before exceptional items, amortization of customer relationships and brands, and share of post-tax earnings of associates and joint ventures, rose 11.6 percent to 953 million pounds, or $1.64 billion. The privately owned company, which owns the Boots pharmacy chain, said revenues grew 15.5 percent on-year to 20.5 billion pounds, or $35.29 billion.
Alliance Boots’ health-and-beauty division, which incorporates retail sales of prescription and over-the-counter drugs through its pharmacies as well as beauty products, reported revenues that were up by 4.4 percent to 7.15 billion pounds, or $12.31 billion. In the U.K., beauty and toiletries sales hit 2.06 billion pounds, or $3.54 billion, an increase of 0.4 percent over the prior year.
“Growth in toiletries [was] partially offset by lower sales of cosmetics and fragrances,” the company stated. “No. 7, our cosmetics and skin care brand, maintained its market-leading position in the U.K.”
Alliance Boots said in January it generated a pretax cost savings target set at the time of Alliance UniChem and Boots Group’s merger of 100 million pounds, or $172.2 million, 18 months ahead of schedule. “We are fully committed to the development and growth of Alliance Boots and believe that we are on track to become the world’s leading pharmacy-led health and beauty group,” stated Stefano Pessina, Alliance Boots’ executive chairman.