Boots sales grow as owner WBA continues turnaround

Walgreens Boots Alliance has delivered a 4.1% increase in sales to $38.6 billion (£29.9 billion) for the second quarter ending 28 February, with double-digit growth at Boots online. 

The company's US retail pharmacy segment reported sales of $30.4 billion (£23.6 billion), reflecting an increase of 5.3%.

As part of this, pharmacy sales increased 8.9%, benefiting from higher branded drug inflation and prescription volume. Meanwhile, retail sales declined 5.5%, driven by lower sales in categories such as beauty, seasonal and general merchandise.

The international segment, which covers Boots and WBA's German wholesale business, achieved second quarter sales of $6.1 billion (£4.7 billion), rising 0.6% from the year-ago quarter.

Boots UK sales increased 1.6%, with both pharmacy and retail sales up on a constant currency basis. Most notably, online sales grew 19.5% - or 20.4% on a constant currency basis - representing over 20% of the high street chain's total retail sales.

Tim Wentworth, CEO of Walgreens Boots Alliance, said: "We remain in the early stages of our turnaround plan, and continue to expect that meaningful value creation will take time, enhanced focus and balancing future cash needs with necessary investments to navigate a changing pharmacy and retail landscape."

The trading update comes after Walgreens Boots Alliance entered into a definitive agreement to be taken private by US-based firm Sycamore Partners in a $10 billion deal.

The transaction, which is expected to be completed by the end of 2025, will attempt to better position WBA to become the "first choice" for pharmacy, retail and health services.

Given the pending transaction, the company has withdrawn its FY25 guidance.