Preliminary results announcement for the year ended 31 March 2011
"Continued double digit growth and strengthened platform for expansion"
- Revenue up 15.1% to £20.2 billion – £23.3 billion including share of associates and joint ventures
- EBITDA up 10.8% to £1,300 million – £1,442 million including share of associates and joint ventures
- Trading profit up 14.2% to £1,051 million – £1,164 million including share of associates and joint ventures
- Cash generated from operations £1,309 million
- Net borrowings reduced by £546 million
- Step change in international expansion of pharmaceutical wholesaling:
– Controlling interest in Hedef Alliance acquired in July (Turkey, Egypt)
– ANZAG majority ownership acquired in December (Germany, Romania, Lithuania)
- Internationalisation of product brands accelerating
Health & Beauty Division
- Revenue up 1.7% in actual and constant currency
- Trading profit up 5.5%
- Boots UK:
– Like for like dispensing volume up 3.6%
– Like for like retail revenue up 1.2% (incl. VAT)
Pharmaceutical Wholesale Division
- Revenue up 23.6% – up 26.1% in constant currency
- Trading profit up 36.2%
- Expansion into geographic markets through acquisitions
Stefano Pessina, Executive Chairman, commented:
“Alliance Boots continues to perform strongly, delivering a double digit growth in trading profit through a combination of organic growth and acquisitions, while at the same time reducing net borrowings.
“In 2010/11 we have made great progress across the Group to accelerate our growth plans, including acquiring controlling interests in both Hedef Alliance and ANZAG, our Turkish and German associates. In recent years we have made substantial capital investments, particularly in our Boots stores and supporting infrastructure. As a result, we have a strong platform for continuing growth in our core businesses and on which to build our next phase of growth, focused on international expansion.
“Looking to the year ahead, we are planning for consumer demand to be subdued and expect governments to continue to seek ways to contain growth in healthcare expenditure. In spite of this, we are confident about our future prospects both in the short and longer term. This comes from having a clear strategy, the right values, strong financial disciplines and dedicated teams throughout the Group focused at all times on our customers.”
Reconciliations of trading profit to profit from operations before associates and joint ventures, and underlying profit to profit for the year, are set out in the Group's 2010/11 Annual Report.
A glossary of key terms is provided in the Group's 2010/11 Annual Report.
The Group’s 2010/11 Annual Report, will be published on our website (www.allianceboots.com) on 19 May 2011. In addition, the Group’s Corporate Social Responsibility Report 2010/11 will be published on our website on 30 September 2011.
For further information, please contact:
Yves Romestan/Sally Lewis/Sanam Conway
Tel: +44 (0) 1932 871400
James Murgatroyd/Katie Lang
Tel: +44 (0) 20 7251 3801