WBA explores Boots sale as it looks to focus on US operations

Boots UK could be sold by the end of 2023 as the bosses of its US parent company are put under pressure to break up the Walgreens Boots Alliance.

Investors and board members want Stefano Pessina, Executive Chairman of the Walgreens Boots Alliance, and Chief Executive Officer 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".

The move would see Walgreens concentrate on a new strategy, which includes moving the pharmacy chain away from traditional retail and focusing more on US private healthcare.

The Walgreens Boots Alliance was created through the combination of Walgreens and Alliance Boots in 2014. The transaction brought together two retail giants with "iconic brands, complementary geographic footprints, shared values and a heritage of trusted healthcare services through pharmaceutical wholesaling and community pharmacy care, dating back more than 100 years".

The firm previously put Boots up for sale with a price tag of £7 billion in January 2022. However, this was called off in June 2022 after the business failed to find a suitable buyer.

In its latest financial results for the first quarter ending 30 November 2022, WBA revealed a 1.5% decrease in sales to £27.8 billion ($33.4 billion). Sales rose 1.1% on a constant currency basis.

The international segment reported a 10.8% drop in sales to £4.3 billion ($5.2 billion). However, sales increased 4.6% on a constant currency basis, with Boots UK sales growing 4.3% in the first quarter. The company also reported a net loss of $3.7 billion, compared to a net income of $3.6 billion in the same quarter last year.

The news comes ahead of WBA's trading update for the second quarter, which will be shared tomorrow.