Boots Group plc
Boots: 2006 results
Boots core retail chain Boots the Chemist suffered a slight like-for-like decline in sales and margin declines.
The company explains away the fall in operating margin as the result of spending on shop-refits and other improvements to the business, and the reduction in gross margin has been slight at 20 basis points. However we still believe […]
Boots: Q4 trading statement
Boots did better in the fourth quarter than in the rest of the year. After adjusting for the extra trading day (because Easter is later this year than last) and the (imposed) reduction in pharmaceutical prices, there was underlying like-for-like sales growth of 1.5% in its core business: almost enough to keep up with inflation.
Apart […]
Alliance Unichem: 2005 results
Alliance Unichem’s results were in line with expectations and do not change our view of the prospects of the emrged (with Boots) business.
Since we last looked at Boots the merger has received approval from the Office of Fair Trading and there are no significant obstacles to its completion.
Our views on the merged business have not […]
Boots: trading statement
It ways a lot about Boots’ growth prospects that the company can describe 0.3% like-for-like sales growth (excluding the effects of the imposition of a reduction in pharmaceutical prices) as “another good Christmas”.
There are encouraging signs in Boots performance. The improvement in gross margin and strong growth in 7% growth in sales of “beauty” products […]
Boots H1 results
Negative like-for-like growth in the core retail business was the result of regulatory imposed price cuts and the company claims the underlying like-for-likes were almost flat. Although the overseas businesses produced high growth (12% like-for-like) but as these generate only 1.3% of retail sales their effect at the group level is negligible.
Profitability over the half […]
Sale of Boots Healthcare to Reckitt Benckiser
Boots is selling its manufacturing operations, Boots Healthcare International, to Reckitt Benckiser for £1.9bn. Of this £1.4bn will be will be returned to shareholders through a special dividend of approximately 200p. As previously announced £400m will be retained . The remaining £100m+ has been absorbed by taxes and other costs.
The sale will take around a […]
Boots - Alliance Unichem merger proposal
The market reacted positively to news of the merger. We are somewhat less optimistic as we do not believe that it is likely to deliver much more than cost savings from economies of scale.
The merger is conditional on several things. Shareholder approval should not be a problem given the market’s positive reaction to the news. […]
Boots trading statement
Boots Healthcare International performed even better in the second quarter with sales up 8.3% at constant currency after adjusting for the sale of certain brands. Boots the Chemist, the main retail chain, did even worse in the second quarter with a like-for-like decline of 1.6%. Total sales were up 0.8% (even this is less than […]
Boots trading statement
The best performing business within Boots remains Boots Healthcare International which increased sales 6.8% at constant currency after adjusting for the effect of the sale of some brands. Boots plans to sell this business (which will leave it a pure retailer) but there is not real news on the disposal and do indication of the […]
Boots full year results
Turnover from continued businesses for the year to March 2005 at Boots was up 2.9% to £5.4bn with operating profit (on continued businesses) down 10.9% to £508m. Interest costs were 3.6× the previous year at £19.8m and should have reduced EPS further. However a lower tax charge (0.7× the previous year) of £124.7m […]
Sale of Boots Healthcare, trading statement
The sale of Boots Healthcare International, the best performing part of the group, was announced along with a trading update
Boots
Boots’ chemists shops, its largest business, are increasing sales though price cuts and there is some evidence that margins are being maintained, while Boots Healthcare International, its manufacturing business, continues to perform well. It has closed down most of its “health services” chain apart from Boots Opticians which is tiny, making just 0.6% of operating […]
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