Increased revenues from weight loss services contributed to revenues at the Irish arm of pharmacy retail giant, Boots increasing by 3% to a record €598.46m last year.
New accounts filed by Boots Retail (Ireland) Ltd show that despite the record revenues of €598.46m, pre-tax profits remained flat €37.8m in the 12 months to the end of August last.
The company closed one outlet during the year bringing the store network to 94.
No dividends were paid out last year or since year-end after the company paid out dividends of €29m in 2024 after paying a dividend of €48.2m in 2023.
The directors state that retail revenues made up 86.7 per cent of total revenues with pharmacy revenues making up the remaining 13.3%.
The directors state that comparable retail revenue increased by 3.7% as a result of strong online growth, partially offset by its Terminal 1 Dublin airport store closure.
The directors state that pharmacy revenue increased by 9% to €79.6m.
They state that comparable pharmacy revenue increased by 9.4% mainly due to volume growth in relation to Government schemes and increased services revenue driven by weight loss services.
The directors state that operating profit increased by 6.8% to €42.5m “primarily driven by stronger sales performance across retail and pharmacy, partially offset by a rise in cost of sales and distribution costs”.
The company enjoyed a post tax profit of €31.9m after incurring a corporation tax charge of €5.9m.
The directors state that post tax profits increased by 1.4% primarily as a result of the increase in operating profit, partially offset by a rise in net finance costs that was largely due to higher lease interest expenses.
On the risks facing the company, 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 global conflicts.
“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,” they say.
“The current macroeconomic environment including the cost of living crisis has not caused a significant impact on the business to date however there is some impact on the short term outlook for growth and an increase in cost of sales and operational overheads,” the directors add.
Numbers employed decreased from 1,668 1,657 as staff costs increased from €77.23m to €81.8m.
The profits take account of non-cash depreciation costs of €25.1m; a non-cash impairment of property charge of €426,000 and a gain of €443,000 on the disposal of assets.
The profit also takes account of an impairment reversal of €1.07m.
Remuneration paid to directors last year totalled €1m and the highest paid director received €491,000 made up of €422,000 in pay, €31,000 under long term incentive schemes and €38,000 in pension contributions.
The post tax profits resulted in shareholder funds increasing from €134.46m to €166.36m that included accumulated profits of €63.36m.
Cash funds increased from €6.9m to €8.6m.
Last week it was reported that Australian pharmacy group Sigma Healthcare, whicht had eyed a takeover of the global business of Boots, had pulled out of talks, arguing that the potential $10 billion (€8.6 billion) deal did not match its objectives.
Canada’s Weston family has also held talks over a deal for the UK chemist chain which is owned by private equity firm Sycamore Partners.
Reporting by Gordon Deegan
