Boots hikes profit forecasts as pharmacy sales offset high street slump
The US owner of Boots today hiked its profit forecasts for the full year as higher pharmacy sales helped offset lower footfall during lockdown.
Walgreen Boots Alliance posted an 8.4 per cent increase in profit to $1bn (£725m) in the second quarter, driven by a rise in comparable pharmacy sales in the US.
Revenue for the period was $32.8bn, an increase of 4.6 per cent but short of analyst expectations.
The company is set to benefit from its role in delivering Covid-19 vaccinations and tests.
Following a deal with the NHS, Boots has delivered more than 2.6m tests at 66 sites and launched 25 major vaccination sites at its stores.
Walgreens has administered more than 8m vaccinations in the US — including 4m in March alone — and provided roughly 5m tests.
In the UK, Boots enjoyed a 3.2 per cent rise in pharmacy sales, which it said reflected favourable timing for its NHS reimbursement as well as stronger pharmacy services.
It came as like-for-like retail sales slumped 17.9 per cent year on year due to lower high street footfall as a result of the pandemic.
Walgreen Boots Alliance said it was raising its full-year profit forecasts to mid-to-high single digit growth from previous guidance of low single digit growth.
“Overall, we have achieved a good financial quarter with results well ahead of expectations, despite significant impacts from Covid-19, and we have raised our full-year earnings per share guidance,” said chief executive Rosalind Brewer, who took the helm in January.
“I am optimistic about our ability to drive sustainable, long-term value for our shareholders, while acknowledging that there is still work to be done to stabilise the base business.”