Boots sales rise 5% in Q3 amid strong online performance
Boots UK’s comparable pharmacy sales rose 5.4% on a constant currency basis during the quarter, with comparable retail sales increasing 6%
Walgreen Boots Alliance has reported that its International segment saw sales rise by 7.8% to $6.2bn (£4.5bn) during the third quarter, with Boots UK sales growing 5% and the Germany wholesale business growing 6.8%.
The group, which is the parent company of Boots, has seen its third quarter sales rise 7.2% to $39bn (£28.3bn) thanks to its performance in the US Retail Pharmacy and International segments.
Boots UK’s comparable pharmacy sales rose 5.4% on a constant currency basis during the quarter, with comparable retail sales increasing 6%.
According to WBA, Boots UK’s online sales jumped by 18.7% – or 14.8% on a constant currency basis – representing 17% of Boots total retail sales.
As a result of the strong retail performance in Boots UK and market growth in Germany, adjusted operating income in the International segment rose 22% to $214m (£155.7m).
However, WBA’s third quarter operating income was lower at $53m (£38.5m), down from $111m (£80.7m) in the same quarter a year before. This was attributed to a non-cash impairment charge related to certain long-lived assets.
Meanwhile, adjusted operating income was $558m (£405.9m) compared with adjusted operating income of $613m (£445.9m) reported in the year before. This reflects higher incentive accruals and lower US retail sales, according to WBA.
Tim Wentworth, chief executive of Walgreens Boots Alliance, said: “Third quarter results reflect continued improvement in our US Healthcare segment and benefits from our cost savings initiatives, while we continued to see weakness in our US front-end sales.
“We remain focused on our turnaround plan, which will require time, disciplined focus and a balanced approach to manage future cash needs with investments necessary to navigate an evolving pharmacy and retail environment.”
