Boots Ireland, the pharmacy and beauty store chain, recorded close to a 5 per cent rise in its revenues last year to €298 million but a sharp drop in its trading profitability, according to its accounts for the 12 months to the end of March.

The group said its operating profits fell by about 3 per cent to €19.9 million. This figure was boosted, however, by a €4.6 million accounting gain due to the closure of its defined benefit pension scheme.

Without that one-off gain, the company’s operating profit would have been closer to €15.3 million, a 25 per cent reduction on the previous year’s operating profit. Before reaching its operating profitability, the accounts record a €14 million rise in “distribution costs”.

The group, which has close to 80 stores in Ireland, added two new stores to its network over the year, and the accounts say it has added a further three since March.

It said like-for-like growth in its stores was 1.8 per cent, although its improved performance was “partially offset” by lower pharmacy dispensing fees, which are payable by the Health Services Executive.

It finished the 12-month period with 1,520 staff, an increase of 100 over the prior year. Boots Ireland paid its parent company a dividend of €15.4 million during the year.