Boots reports 11% fall in annual profits
Health and beauty chain Boots today warned trading conditions remained tough as it reported an 11% fall in annual profits.
Boots said the competitive environment and a slowdown in spending on the high street meant an overhaul of the business had not been easy – although the early signs were “encouraging”.
The fall in profits before tax and exceptional items to £481m (€698.4m) was ahead of guidance given at the time of a profits warning in March.
Chief executive Richard Baker said: “Trading remains tough and the first few weeks of the new financial year confirm that demand on the high street remains subdued.”
Same-store sales at its core Boots the Chemists chain advanced 2.4% during the year to March 31.
The company was continuing to expect this figure to fall back to between 0% and 2% in the new financial year, as announced last month.
Boots had already braced investors for a difficult year ahead, pointing to the impact of lower consumer spending and higher costs, particularly in relation to its turnaround programme.
