Alliance Boots, the global retail & wholesale business, has reported double digit growth in profits during the last year thanks to large international expansion.
Boots UK, the group’s health & beauty retail arm in Britain, increased its like-for-like (LFL) dispensing volume up 3.6 per cent in the 12 months to March 31st 2011 and boosted its LFL retail revenue inclusive of VAT by 1.2 per cent year-on-year.
Wholesale was the real star performing segment for the company during the period however, helping overall group revenue jump 15.1 per cent, EBITDA rise 10.8 per cent and trading profit increase by 14.2 per cent compared to last year to total £1.3 billion.
Stefano Pessina, Executive Chairman of Alliance Boots, commented: “Alliance Boots continues to perform strongly, delivering a double digit growth in trading profit through a combination of organic growth and acquisitions, while at the same time reducing net borrowings.”
Former CEO of Alliance Boots Andy Hornby announced his resignation in March after five years at the helm, most recently steering the company through straightened financial times whilst expanding its operations into new markets.
Pessina continued: “In recent years 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 growth, focused on international expansion.”
Margins at Boots UK increased 10.6 per cent in total over the 12 months, compared to a six per cent growth seen internationally, thanks to efficiencies and cost cuttings.
Overall global retail revenues rose by 1.7 per cent in actual and constant currencies during the year.