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Boots Shows Growth in 2011/2012 Financial Report
Posted: May 21, 2012
Alliance Boots has reported its financials for the 2011/2012, marking double-digit growth in trading profit through a combination of organic growth and the benefits from the previous year’s acquisitions.
Revenue increased year on year by 18.4% to £23,009 million, and trading profit increased by 12.4% to £1,195 million while was EBITDA on the same basis by 10.2% to £1,443 million. On a constant currency basis, revenue increased by 19%, an increase of 0.6% on a like-for-like basis. Revenue, including Alliance Boots’ share of revenue of associates and joint ventures, increased by 12.5% to £25,383 million. On the same basis, EBITDA increased by 8% to £1,568 million and trading profit by 10.5% to £1,300 million. Underlying profit increased year on year by 10.2% to £693 million.
Commenting on the results, executive chairman Stefano Pessina said, “I am pleased to report that Alliance Boots continues to perform very well. In 2011/12 Alliance Boots has again delivered double-digit growth in trading profit while at the same time generating a strong operating cash flow to fund investment in growth and substantially reduce net borrowings. This performance, which has been achieved through a combination of organic growth and benefits from the previous year’s acquisitions, is particularly encouraging given the challenging economic environment.
“We remain focused on becoming the world’s leading pharmacy-led health and beauty group. In recent years, we have significantly expanded our international presence and now operate, together with our associates and joint ventures, in more than 25 countries. At the same time, we have made substantial capital investments, particularly in our Boots stores and supporting infrastructure. As a result, we have a strong platform for continuing growth in our core businesses and on which to build our next phase of development, focused on further international expansion,” Pessina commented.
The company’s health and beauty division delivered a good overall performance in the context of regulatory pressures, which particularly impacted dispensing profitability in the U.K., and difficult retail markets. The results outside the U.K. were particularly notable, achieved through new store openings and expanding product sales in key markets such as the U.S. The division’s revenue increased year-on-year by 0.6% to £7,671 million, trading profit increased by 6.0% to £813 million and trading margin increased by 0.5 percentage points to 10.6%.