High street pharmacy giant Boots has cautioned that it is facing "heightened cost pressures" in 2025, following the Autumn Budget. However, the company also reported robust sales towards the end of last year.
Newly appointed boss Anthony Hemmerdinger acknowledged the increased pressure, but emphasised that "the business is focused on navigating these and continuing to deliver long-term, sustainable growth". Boots saw an 8.1 per cent year-on-year rise in total comparable retail sales for the first quarter of its financial year, spanning the three months to 30 November 2024, as reported by .
The health and beauty retailer reported growth across all categories and channels, building on a significant increase the previous year. Digital sales shot up by 23 per cent year on year, accounting for 22 per cent of total retail turnover, while store sales also increased.
Although the period did not include Christmas sales, Boots reported a 20 per cent boost in Black Friday sales during that week. The company will release its Christmas sales performance in its second-quarter earnings report later this year, but noted that "early indications suggest a solid Christmas trading period".
The retailer's beauty sales jumped 11 per cent year on year, driven by fragrance, premium beauty, and skincare. In the healthcare sector, Boots reported a 10.9 per cent increase in comparable pharmacy sales, largely attributed to the robust performance of services such as flu, Covid-19, and travel vaccinations.
Anthony Hemmerdinger, Managing Director of Boots º£½ÇÊÓƵ and Ireland, commented: "This is another strong set of financial results, with retail and pharmacy sales seeing significant uplift alongside market share gains and increased customer satisfaction scores."
He added, "These figures demonstrate that our ongoing transformation – from improvements to the in-store and digital customer experience to a focus on offering the very best product and service range across all price points – is working."
Hemmerdinger also said, "This kind of success requires collaborative working at pace, and I’d like to say a big thank you to all of our team members for their hard work over this important trading period. " He continued, "We are relentlessly focused on our transformation journey and have more exciting plans ahead to further enhance the experience for our customers."
Looking to the future amidst economic challenges, he stated, "Looking forward, we face heightened cost pressures in 2025 following the Autumn Budget, however with positive momentum behind us and a clear plan in place, the business is focused on navigating these and continuing to deliver long-term, sustainable growth."
In October 2024, Boots credited an uptick in online sales and makeup demand for its turnover increase during the latest financial year.
