Alliance Boots upbeat at launch
Boots and Alliance UniChem began life as a single company today following their long-awaited merger to create a pharmacy giant with around 2,600 stores in the UK alone.
Boots has traded in Ireland since 1996 and employs 1,200 people in its 40 stores.
The newly-created Alliance Boots listed in London with a market capitalisation of £3.92bn (€5.7bn), although its shares slipped nearly 1% in early trading.
Alliance Boots also delivered the final two trading updates for the pair as separate companies and said that “both businesses are on track”.
Boots posted a 3% hike in like-for-like sales in the three months to June 30, while Alliance UniChem said revenues were up 2% to £4.72bn (€6.9bn) and operating profits were up 11% to £135.8m (€198m) over a six-month period.
The combined firm immediately turned its attention to cost savings and said it was upbeat about the future.
Alliance Boots chief executive Richard Baker, who was chief executive of Boots before the merger, said he expected cost savings of “at least £100m (€146m) ” a year within four years.
“The first stage of this work has already started and we are confident of delivering £60m (€88m) of annualised savings by the end of the second year,” he said.
“I am delighted that we are able to announce the completion of the merger between Alliance UniChem and Boots to create Europe’s foremost international pharmacy-led health and beauty group.
“The union of these two great businesses also establishes a new market leader in UK pharmacy and provides exciting opportunities for international growth.”
