Friday, November 17, 2017

Boots’ parent company beats earnings expectations in quarterly report

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The US-based company which owns the Boots pharmacy retailer in the UK has posted a better-than-expected profit in its third quarterly report.

Walgreens Boots Alliance Inc saw its net earnings jump 14.7 per cent year-on-year to $1.3 billion USD (£1 billion GBP) in the three months to May 31, but its net revenue at $29.5 billion slightly missed the target of $29.7 billion.

According to Reuters, the company did not say how the Brexit referendum would affect its business – in particular in the UK and its Boots chain.

In the year ended August 2015, UK accounted for nine per cent of Walgreens Boots Alliance’s total revenue.

Neil Saunders, chief executive from research firm Conlumino, said the company’s international revenue and profit could affected by Brexit in the near future due to the fall in the pound’s value.

“This will, in our view, more than offset any sales gains made in local currency terms,” he said.

Walgreens Boots Alliance was formed in late 2014 after a merger between Walgreens and Alliance Boots.