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RTÉ News
2 days ago
- Business
- RTÉ News
Boots Ireland report record revenues of €580.76m
Strong growth in online sales and a rise in demand for vaccination services contributed to the Irish arm of pharmacy giant, Boots enjoying record revenues of €580.76m last year. New accounts filed by Boots Retail (Ireland) Ltd show that on the back of the record revenues, pre-tax profits increased by 3% to €37.8m. In the 12 months to the end of August last, revenues surged by €51m or 10% from €529.63m to €580.76m. The pre-tax profits of €37.8m follow pre-tax profits of €36.56m in fiscal 2023. The company opened one new outlet during the year bringing the store network to 95. During the year, the company paid out dividends of €29m after paying out a dividend of €48.2m in 2023. The directors state that retail revenues made up 87.4% of total revenues with pharmacy revenues making up the remaining 12.6%. Comparable retail revenues increased by 7.2% "as a result of strong growth in online sales". They state that pharmacy revenues increased by 10.2% "mainly due to volume growth in relation to Government schemes and service growth due to the rise in demand for vaccination services". The directors state that the company's business is affected by a number of factors including its sales performance during holiday periods, including particularly the winter holiday season, and during the cough, cold and flu season. Other factors include significant weather conditions, the timing of its own or competitor discount programmes and pricing actions and the timing of changes in levels of reimbursement from governmental agencies. The firm recorded a post tax profit of €31.46m after the company incurred a corporation tax charge of €6.34m. Numbers employed increased from 1,630 to 1,668 as staff costs increased from €72.29 million to €77.24m. The profits take account of non-cash depreciation costs of €25m and non-cash impairment charges of €2.36m. Remuneration paid to directors last year increased marginally from €1.04m to €1.05m and the highest paid director received €491,000 made up of €352,000 in pay, €103,000 under long term incentive schemes and €36,000 in pension contributions. The higher post tax profits offset by the dividend payout resulted in shareholder funds increasing from €132.92m to €134.46m that included accumulated profits of €31.46m. Cash funds increased from €5.3m to €6.9m. On the risks facing the business, the directors state that "the impact of the current global cost pressures has resulted in high inflation rates in the Republic of Ireland and globally, and this has been exacerbated by the ongoing conflict between Russia and Ukraine. The directors state that "these factors have contributed to a cost of living crisis within the Republic of Ireland which could impact various stakeholders as well as the business".
Irish Times
2 days ago
- Business
- Irish Times
Boots Ireland books €2.4m property charge amid rising costs
Boots booked a €2.4 million impairment charge against the value of its Irish property portfolio last year as a precaution against rising sales costs and overheads, as profit growth eased significantly from the previous year. Operating profits at Boots Retail Ireland Ltd, the company behind the pharmacy chain's 95 stores in the Republic, increased 3.4 per cent to €39.8 million in the 12 months to the end of August last. This was down from a 13.7 per cent surge in operating profits in the year to August 2023 and 13.6 per cent in the previous year as normal trading rhythms resumed following the Covid-19 pandemic. In a report attached to the accounts, the directors said the small jump in operating profits was driven 'primarily' by stronger sales performance across its retail and pharmacy division. READ MORE Revenues at Boots Ireland climbed 9.7 per cent to €580.6 million, more than €507.4 million of which, or 87.4 per cent, came from retail sales, which grew by 9.6 per cent due to online sales growth. The remaining 12.6 per cent related to pharmacy sales, which jumped by 10.2 per cent in the year, mainly due to 'volume growth' relating to 'Government schemes' and rising demand for vaccination services, the directors said. [ Boots 'extremely remorseful' after pleading guilty over misleading Black Friday prices Opens in new window ] Rising sales were 'partially offset', according to the report, by a rise in administrative costs, which climbed more than 50 per cent to €12.3 million, and distribution costs, which jumped 8 per cent to €229,625. Boots paid out €69.5 million in wages and salaries to its 1,668 staff in the Republic, up by around 6.8 per cent in the year. How to manage your pension in these volatile times Listen | 37:00 The directors said that as part of an annual review of its store portfolio, the company had concluded that a €2.4 million impairment charge was required for the year. The 'cost-of-living crisis' did not have a 'significant impact' on the business in the financial year, they said, but had led to an 'increase in cost of sales and operational overheads'. The Irish company, which opened also paid a €29.9 million dividend to its parent, Walgreens Boots Alliance, down from €48.8 million last year. [ Boots owner to be taken private in €22bn deal Opens in new window ] Earlier this year, Walgreens Boots Alliance was taken private in a $23.7 billion (€21.8 billion) deal with private equity group Sycamore Partners, which will end the struggling pharmacy chain's century-long run as a public company later this year. Sycamore agreed to pay $11.45 a share to take Walgreens private, valuing its stock at a nearly 30 per cent premium to before deal talks were first reported in December and giving it an equity value of about $10 billion, the pharmacy chain said on Thursday. Sycamore is likely to hold on to the US retail business and sell or spin off the remainder, which includes the UK pharmacy chain Boots , as part of a three-way split, the Financial Times previously reported. As part of the deal, Italian billionaire Stefano Pessina, Walgreens' executive chair and largest shareholder, will maintain a sizeable minority shareholding in the business. Last month, Boots pleaded guilty in Dublin District Court to breaching legislation aimed at protecting consumers from misleading prices during sales periods following an investigation by the consumer watchdog. The breach identified by the Competition and Consumer Protection Commission (CCPC) was said to have occurred in the 2023/24 winter sales season, a period which covered the Black Friday and Cyber Monday sales windows.
Irish Examiner
2 days ago
- Business
- Irish Examiner
Strong sales across retail and pharmacy business see revenue at Boots' Irish arm top €580m
Strong sales performances across both retail and pharmacy segments saw revenue at the Irish arm of Boots rise by almost 10% in 2024. Newly filed accounts by Boots Retail (Ireland) Ltd show the company's revenue rose to more than €580m in the 12 months to August 2024, underpinned by strong sales across its business operations, which helped partially offset a rise in administrative and distribution costs. The company, which now operates 95 stores across the Republic following the opening of a new outlet last year, saw its operating profit rise by more than 3% in the year, increasing to almost €40m. Revenues from the retailer's pharmacy business, which accounts for 12.6% of its total sales, rose by more than 10% in the 12 months, largely helped by volume growth deriving from Government schemes and service growth due to the rise in demand for vaccine services. Meanwhile, its retail business, which comprises the remaining 87.4% of the company's total sales, rose my 9.6% in the same period, underpinned by strong growth in online sales. The firm recorded an after-tax profit of €31.4m, up by more than 5% annually, after incurring a corporation tax charge of €6.3m. The average number of full-time employees working across Boots' Irish division rose slightly to 1,668, up from 1,630 in the previous 12 months, with total staff costs in the period rising by 7% to €77.2m. Remuneration paid to directors last year rose marginally to €1.05m, with the highest paid director receiving €491,000, made up of €352,000 in pay, €103,000 under long-term incentive schemes and €36,000 in pension contributions. Noting the series of risks facing the business, the report cited global cost pressures which have been exacerbated by the ongoing conflict between Russia and Ukraine, leading to "high inflation rates in the Republic of Ireland and globally." The director's added that the impact of Brexit on the business had stablilised, although management "continues to monitor any further developments." Shareholders' equity in the 12 months increased by 1.2% following a decrease in 2023, rising to €134.5m as a result of higher after-tax profit which was partially offset by the dividend paid in the year of almost €30m.
