Interim results announcement for the six months ended 30 September 2006
Alliance Boots plc, the international pharmacy-led health and beauty group, today unveils its first interim results since its formation on 31 July 2006.
The results demonstrate that the Group is well positioned following the merger with:
- Good trading in both the Retail and Wholesale Divisions - in line with expectations.
- Progress on work to deliver the promised cost synergies on track.
Richard Baker, Chief Executive, said of the results:
"This has been an encouraging start to life as Alliance Boots. The Group has performed well in the first half, in line with our expectations. Our Retail Division traded strongly with the UK operations, our biggest single market, benefiting from continued growth in healthcare and the warm weather. Meanwhile, our Wholesale Division continued to perform well, reflecting the strength of our geographically diverse portfolio of businesses.
"We have also seen good early progress on work to achieve the promised cost synergies from the merger and are on track to deliver against our expectations for the full year. We have a large group that is strategically well placed in growing markets and we are confident about the opportunities both to strengthen our existing businesses and to expand into new territories. We have made good progress so far but there is much to do."
Group highlights - pro forma
To assist investors in understanding the performance of the Group, pro forma financial information has been prepared to show the results from continuing operations of the Group as if the two former groups had always been combined. This information has been prepared for the six months ended 30 September 2006 with comparatives on the same basis for the six months ended 30 September 2005 and year ended 31 March 2006. The pro forma revenue and profit statement has been prepared on an adjusted basis, which means for continuing operations, before non trading items, amortisation of certain acquired intangible assets and IAS 39 timing differences, all net of tax and before exceptional tax credits.
Detailed pro forma financial information, including the basis of preparation, is set out in the "Additional pro forma financial information from continuing operations" section of this report.
|Revenue||up 2.9% to £7,039 million (H1 05/06: £6,839 million)|
|Trading profit1||up 2.7% to £267 million (H1 05/06: £260 million)|
|Underlying trading profit2||up 5.1% to £267 million (H1 05/06: £254 million2)|
|Adjusted earnings3||up 10.3% to £193 million (H1 05/06: £175 million)|
|Adjusted earnings per share4||up 10.4% to 20.1 pence (H1 05/06: 18.2 pence)|
1. Trading profit comprises profit from operations before non trading items, amortisation of certain acquired intangible assets and share of associates' post tax earnings
2. Underlying trading profit is after adjusting the trading profit for the six months ended 30 September 2005 to include a full six months rental charge on the 312 retail outlets which were sold and leased back in July 2005, so that the trading profits for both accounting periods are on a comparable basis
3. Adjusted earnings comprises profit for the period attributable to equity shareholders before non trading items, amortisation of certain acquired intangible assets and IAS 39 timing differences, all net of tax and before exceptional tax credits
4. Adjusted earnings per share comprises adjusted earnings divided by the pro forma weighted average number of shares in issue during the period of 962 million (H1 05/06: 962 million)
Group highlights - statutory
The statutory financial results for the six months ended 30 September 2006 contain six months of results for the former Boots Group PLC businesses and two months of results for the former Alliance UniChem businesses on an acquisition accounting basis. The comparative figures for the first half of 2005/06 contain only the results of the former Boots Group PLC businesses and include a one-off £151 million pre tax exceptional profit on the sale and leaseback of 312 retail outlets in July 2005.
|Revenue - continuing operations||£3,933 million (H1 05/06: £2,339 million)|
|Profit from operations - continuing||£156 million (H1 05/06: £282 million)|
|Profit for the period attributable to equity shareholders||£135 million (H1 05/06: £273 million)|
|Basic earnings per share - total||21.8 pence (H1 05/06: 38.2 pence)|
|Basic earnings per share - continuing||19.0 pence (H1 05/06: 33.9 pence)|
Key reconciliations between pro forma and statutory financial results are provided after the "Additional pro forma financial information for continuing operations" section of this report.
A glossary of key terms is provided in the information at the end of this report.
The Alliance Boots plc presentation to City analysts will be webcast live at 09:00 GMT on 14 November 2006 and can be accessed via the Group's website at www.allianceboots.com . It will be available as an archive to replay via the website from 12:00 noon GMT.
For further information, please contact:
Gerald Gradwell/Chris Laud
Tel: +44 (0) 20 7995 9618 (to 12:30 on 14 Nov 2006)
+44 (0) 115 968 7080 (thereafter)
Tel: +44 (0) 20 7995 9618 (to 12:30 on 14 Nov 2006)
+44 (0) 20 7138 1164 (thereafter)