Boots has reported a significant increase in profit after closing numerous stores during its latest financial year, while also shelving plans for an initial public offering (IPO).
The Nottingham-based pharmacy giant closed 334 outlets in the year ending August 2024, according to newly filed accounts at Companies House, as reported by .
Boots reports its financial outcomes through three separate entities: Boots º£½ÇÊÓƵ, The Boots Company plc, and Boots Management Services.
Newly disclosed figures show that Boots º£½ÇÊÓƵ's revenue climbed to £7.3bn in the 12 months leading up to 31 August, 2024, rising from £7bn, with pre-tax profits jumping from £60m to £269m.
Meanwhile, The Boots Company plc saw its revenue increase modestly from £179m to £186m, although its pre-tax profits dropped sharply from £122m to £31m.
Boots Management Services' listing at Companies House indicates a slight revenue increase from £1.1bn to £1.16bn, with pre-tax profits growing from £55.6m to £61.7m.
The company operated 1,840 stores by the end of the period, down from 2,177 previously.
Boots closes hundreds of stores
Regarding the store closures, Boots commented: "During the year, the company incurred £6m of restructuring costs [down from £38m] which represent one-off costs associated with changes in the company's store portfolio alongside major IT projects."
The company has actively managed its store portfolio, resulting in the closure of 334 stores this year, bringing the total to 624 closures to date.
"The company has made this strategic decision in order to concentrate team members where they are needed and focus investment more acutely across the store portfolio, with the action of distantly delivering an excellent and reliable service."
Pharmacy revenue for the chain dipped by 2.2% to £2.2bn, while retail sales saw a rise of 6.6% to £5bn.
The firm declared a dividend of £58m for the latest financial year, a significant increase from £15m in the previous 12 months.
New boss, shelved IPO and owner's takeover
New leadership, a postponed IPO, and an acquisition by the owner have marked recent developments for the business.
Following an agreement in March, Walgreens Boots Alliance is set to be acquired by US private equity firm Sycamore Partners in a $10bn (£7.8bn) deal expected to finalise by year-end.
The future implications of the takeover for Boots in the º£½ÇÊÓƵ remain uncertain; the pharmacy chain has been a fixture on British high streets since its inception by John Boot in 1849.
Boots has issued a warning of "heightened cost pressures" in the wake of the Autumn Budget, despite reporting strong sales towards the end of 2024.
Chief executive Anthony Hemmerdinger stated that although the company is facing increased pressure, "the business is focused on navigating these and continuing to deliver long-term, sustainable growth."
In its quarterly update, Boots reported an 8.1% year-on-year rise in total comparable retail sales for the three months to 30 November 2024.
The retailer's full-year financial performance had not been disclosed at the time.
Hemmerdinger took the reins as managing director of Boots in September 2024, succeeding Seb Jones.
Walgreens Boots Alliance abandoned plans to float Boots the previous year.
