Boots sees Q4 retail sales rise but pharmacy sales drop
Boots has released its financial results for the fourth quarter and full year ending 31 August 2022, revealing a 6% increase in Q4 sales.
Comparable retail sales increased 15.2% in Q4, reflecting a recovery in store transactions, with market share gains in personal care, health, wellness and beauty. Retail healthcare sales increased nearly 14%, driven by continued investment in own label healthcare ranges.
However, comparable pharmacy sales decreased 6.9% in Q4. This was largely due to lower demand for COVID-19 services compared to the year-ago quarter.
Boots digital sales accounted for 11% of total Q4 retail sales, compared to 6% pre-pandemic.
Flagship and travel stores saw a boost in footfall as customers returned to city centres, airports and train stations, while multiple heatwaves and a return to travel led to a 150% increase in suncream sales.
For the full year, Boots reported growth driven by continuing "strong performances" in beauty, health and personal care, as well as new online healthcare services.
Sebastian James, Managing Director of Boots UK & ROI, said: “This is a really encouraging set of results. I am especially happy to see more and more customers choosing Boots over others and our market share rising as a result. In addition, I am pleased with the progress we are making in quickly introducing new, trending beauty brands, our healthcare services supporting the NHS and, of course, with our online offer which is now double its pre-pandemic levels."
The Walgreens Boots Alliance shared the following results:
- Q4 sales decreased 5.3% to $32.4 billion.
- Boots accounted for 11% of Q4 retail sales.
- Q4 operating loss of $822 million, compared to operating income of $910 million last year.
- Q4 net loss of $415 million, compared to net income of $358 million last year.
- FY sales increased 0.1% to $132.7 billion.
- FY operating income decreased 40.8% to $1.4 billion.
- FY net earnings of $4.3 billion, compared to $2 billion last year.
