Boots UK owner WBA sees Q2 sales rise as businesses 'perform well'
The Walgreens Boots Alliance has reported a 3.3% increase in sales to £28 billion ($34.9 billion) for the second quarter ending 28 February 2023, driven by double-digit sales growth at Boots UK.
The company's US Retail Pharmacy segment saw sales drop 0.3% to £22 billion ($27.6 billion), whilst the US Healthcare segment saw sales increase £892 million ($1.1 billion) to £1.2 billion ($1.6 billion).
The international segment revealed sales growth of 1.6%, held back by an "adverse currency impact". Sales at Boots increased 11%. The retailer's comparable pharmacy sales grew 2%, limited by lower demand for COVID-19 services, whilst comparable retail sales were up 16%.
Footfall at Boots improved by 16%, as Boots.com continued to "perform well", accounting for over 15% of retail sales against approximately 9% pre-pandemic.
Overall net earnings totalled £570 million ($703 million) against to £716 million ($883 million) in the year-ago quarter. This was driven by lower operating income, partially offset by a £368 million ($454 million) after-tax gain from the partial sale of the company's equity method investment in AmerisourceBergen.
Rosalind Brewer, CEO of WBA, said: "WBA exited a solid second quarter with acceleration in February, adding to our confidence in driving strong growth in the second half of the year.
"Both Walgreens and Boots are performing well by delivering compelling value to consumers, playing a critical role as community health destinations, and successfully navigating a challenging environment. We will continue to take bold actions to create sustainable long-term shareholder value."
The trading update follows the news that Boots UK could be sold or floated by the end of 2023 as the bosses of its US parent company are put under pressure to break up WBA. Investors and board members want Stefano Pessina, Executive Chairman of the Walgreens Boots Alliance, and CEO Rosalind Brewer to "speed up plans to refocus the business on the US".
Speaking to This Is Money, Industry experts have said investors want Walgreens to separate off its international businesses as soon as possible, viewing Boots and other operations in Europe as a "distraction".
