Boots boosted by US sales, eyes further expansion in Asia
The company revealed that its revenues for the full year ending March 31st were down by 2.6 per cent to £22.4 billion, but that the figure reflected strong sales in its health and beauty division during the period, with sales up 6.8 per cent to £865 million.
As well as health and beauty, the company also noted that online sales were up 17 per cent year-on-year, which has also been boosted by a separate online retail platform in the US, supported by Walgreens.
Profits up, despite shrinking group revenues
An increase in the company’s underlying performance meant that profits were and a reduction in debt, meant that the company’s net profit was up 12.7 per cent to £805 million.
“This has been a transformational year for Alliance Boots due to our exciting new strategic partnership with Walgreens, which we are further strengthening by our recent joint agreement to partner with AmerisourceBergen,” said executive chairman Stefano Pessina.
The alliance with US retailer Walgreens has helped give a significant boost to it No 7 anti-ageing range in the US, mirroring the huge increase in sales in the domestic market, following BBC’s Horizon documentary, which singled out the brand as being a particularly effective anti-ageing treatment.
The company launched its No 7 brand in Walgreens flagship Hollywood store last year, with the rollout now being extended to three other flagship stores across the United States since then.
Boots is eyeing expansion in Asia Pacific
Boots has also revealed that it has ambitions to spread the reach of the brand beyond the US market and into the fast growing and lucrative China market, after Pessina said that he is looking for trading partner in that market.
The alliance with Walgreen’s was announced back in March of this year, when the two companies announced they were forming a long-term partnership through pharmaceutical distribution AmerisourceBergen, while in China Boots has signed an agreement with distributor Nanjing Pharmaceutical to expand its footprint in that market.
The company has confirmed that it is assessing distribution of its beauty and health products in the Asia Pacific region by trialing 500 of its health and beauty products in 23 Dairy Farm stores in Hong Kong, which could be later rolled out to other stores in Southeast Asia, India and China.
