Boots: Profit jumps after closing hundreds of stores
Profit at Boots has surged as the high street pharmacy chain closed hundreds of stores during its latest financial year as its owners abandoned plans for an initial public offering (IPO).
The Nottingham-headquartered business shuttered 334 locations in the year to the end of August 2024, new accounts filed with Companies House have revealed.
Instead of reporting its results in one set of group accounts, Boots files its results across three firms: Boots UK, The Boots Company plc and Boots Management Services.
According to the new accounts, Boots UK achieved a revenue of £7.3bn for the 12 months to 31 August, 2024, up from £7bn. Its pre-tax profit also surged from £60m to £269m over the same period.
Separate results filed under The Boots Company plc show the firm’s revenue also increased from £179m to £186m. However, its pre-tax profit was slashed from £122m to £31m.
According to the Companies House listing for Boots Management Services the firm’s revenue nudged up from £1.1bn to £1.16bn while its pre-tax profit rose from £55.6m to £61.7m.
Boots closes hundreds of stores
The results also revealed that Boots operated 1,840 stores in the year, down from 2,177.
On the store closures, the chain said: “During the year, the company incurred £6m of restructuring costs [down from £38m] which represent one-off costs associated with changes in the company’s store portfolio alongside major IT projects.
“The company takes an active approach to its store portfolio management to ensure the right stores are at the right locations to best serve its customers – continuing the reorganisation programme in year resulted in 334 store closures, taking the total programme to 624 store closures to date.
“The company has made this strategic decision in order to concentrate team members where they are needed and focus investment more acutely across the store portfolio, with the action of distantly delivering an excellent and reliable service.”
The chain’s pharmacy revenue fell by 2.2 per cent to £2.2bn while its retail sales increased by 6.6 per cent to £5bn.
The business issued a dividend of £58m for its latest financial year, up from £15m in the prior 12 months.
New boss, shelved IPO and owner’s takeover
The results come after the owner of Boots, Walgreens Boots Alliance, agreed to a $10bn (£7.8bn) takeover by a US private equity firm in March.
Sycamore Partners is expected to complete the takeover by the end of the year.
It still remains to be seen what the deal will mean for Boots in the UK – the chain pharmacy has been a mainstay of the British high street since it was founded by John Boot in 1849.
At the start of 2025, Boots warned it faces “heightened cost pressures” this year following the Autumn Budget as it revealed strong sales towards the end of 2024.
Boss Anthony Hemmerdinger added that while the company has come under increased pressure, “the business is focused on navigating these and continuing to deliver long-term, sustainable growth”.
Boots revealed its total comparable retail sales rose 8.1 per cent year on year in first quarter of its financial year, the three months to 30 November, 2024.
The chain did not reveal any details about its financial performance during its latest full year at the time.
Hemmerdinger was named as the new managing director of Boots in September 2024, succeeding Seb Jones.
Last year, Walgreens Boots Alliance shelved plans to float Boots.