Boots has recorded a slump in annual profits and revenue, which it blamed on “highly competitive nature” of the health and beauty retail sectors.
According to accounts filed that covered the year to August 21, 2017, Boots’ pre-tax profits fell from £523 million in 2016 to £498 million.
Meanwhile, revenue dropped slightly from £6.87 billion to £6.83 billion during the same full-year period.
In addition, no dividend was paid out compared with a total of £219 million in 2016, and the number of stores owned by Boots’ parent company Walgreens Boots Alliance also dipped down by 23 to 2486.
“The company’s retail revenue, gross profit and gross margin are impacted by, among other things, the highly competitive nature of the costs of the health and beauty category,” the board of directors stated in the files.
“In particular, our own and our competitors’ pricing actions, promotional officers and events and our customer’s desire for value and convenience.”
The Walgreens Boots Alliance was formed shortly after Boots merged with its US counterpart Walgreens in 2014.