Boots UK sales rise in Q3 as WBA sales decline

The Walgreens Boots Alliance has released its financial results for the third quarter ending 31 May 2022, revealing a 4.2% decrease in sales to $32.6 billion.

For the third quarter, WBA shared the following results:

• Gross profit of $6.5 billion, compared to $7.1 billion in 2021.
• Net earnings decreased 73.8% to $289 million, compared to $1.1 billion in 2021.
• International sales increased by 0.3% to $5.3 billion.
• Boots retail sales grew 24%, with market share gains across all major categories.
• Boots.com accounted for 13% of retail sales, compared to 6% pre-pandemic.
• Boots UK pharmacy sales decreased 0.4%.

Operating income decreased to a loss of $320 million, compared to a positive operating income of $1.1 billion in 2021. WBA attributes this decline to a "decrease in US pharmacy operating result as it lapped prior year peak COVID-19 vaccinations, and growth investments in Walgreens Health, partly offset by improved retail contributions in both the US and international segments".

In the UK, WBA emphasised the success of the No7 Pro Derm Scan launch in April and over 500,000 customer orders from the Boots Online Doctor service since launching a year ago.

For the first nine months of fiscal 2022, WBA shared also the following results:

• Sales increased 2% to $100.3 billion.
• Operating income increased 54.3% to $2.2 billion.
• Net earnings increased to $4.8 billion.

Looking ahead, WBA expects to maintain full year adjusted EPS guidance of low-single digit growth, as year-to-date performance is tracking broadly in line with expectations.

Rosalind Brewer, CEO of WBA, said: "WBA delivered strong execution across operating segments and against very robust growth last year. Third quarter results were broadly in line with our expectations, demonstrating the resilience of our business through our deep community connections and relevance to consumers. With our decision to conclude the Boots strategic review, I firmly believe that our strategic actions are working to deliver long-term shareholder value."

The results come after WBA pulled the £5 billion sale of Boots. The company plans to keep Boots and the No7 beauty brand under its existing ownership.