Profits up by 14% at Boots Ireland last year

The Irish arm of UK pharmaceutical retail giant Boots increased its pretax profits by 14 per cent to €20.43 million last year.

Accounts filed with the Companies Office show that Boots Retail (Ireland) Ltd recorded the increase in profits after revenues grew by 3.4 per cent from €275.7 million to €285 million in the 12 months to the end of March 31st last.

The business increased its operating profit by 15 per cent to €20.5 million during the year.

In a report accompanying the numbers, the company’s directors noted that “dispensing and total revenue increased ahead of the market despite difficult trading conditions which continued to impact consumer spending”.

The directors stated that five new stores were added during the year and two closed, “reflecting our strategy to expand our presence”.

At the year end, Boots had 74 stores in Ireland.

A spokeswoman for Boots Ireland said yesterday that two new stores at Bandon and Donaghmede in Dublin have opened since the end of last March, bringing the total number to 76. The first Boots store opened in Ireland in 1996.

The spokeswoman said that turnover last year increased “due to new store openings in both the current and prior years”.

She said: “Like-for-like dispensing item volume growth was strong, the resulting turnover growth being partially offset by lower reimbursement rates, but overall like-for-like turnover was down 4.4 per cent, the fragile state of the Irish economy continuing to impact retail sales.” She said trading profit was hit by higher input prices related to the weaker euro.

The accounts disclose that the firm last year paid a dividend of €12.9 million and this followed a dividend payout of €14.6 million in fiscal 2012.