15 May 2013

“Transformational year with 12.7% increase in underlying profit after tax”

Highlights:

Financial

  • Revenue: £22.4 billion - down 2.6% (up 0.6% in constant currency)
  • Trading profit: £1,265 million - up 6.1% (up 7.4% in constant currency)
    • – Health & Beauty: £865 million - up 6.8% (up 7.0% in constant currency)
      • – UK: £813 million - up 8.8%
    • – Pharmaceutical Wholesale: £435 million - up 5.1% (up 8.2% in constant currency)
  • Underlying profit (after tax): £805 million - up 12.7%
  • Statutory profit for the year: £741 million - up 25.0%
  • Cash generated from operations: £1,648 million
  • Net borrowings reduction: £1,124 million

Strategic

  • Strategic partnership with Walgreens
    • – to create the first global pharmacy-led, health and wellbeing enterprise
  • Recent joint agreement with AmerisourceBergen
  • Investment in Nanjing Pharmaceutical announced

Stefano Pessina, Executive Chairman, commented:

“This has been a transformational year for Alliance Boots due to our exciting new strategic partnership with Walgreens, which we are further strengthening by our recent joint agreement to partner with AmerisourceBergen.

“Against the backdrop of this major corporate activity, and the challenging conditions across our markets, we have again delivered a double digit growth in underlying profit after tax. Our people are at the heart of everything we do and it is through clear leadership combined with great teamwork that we have been able to deliver such consistently good results.

“We continue to be confident about our prospects and ability to pursue profitable growth, organically, from our synergy programmes and through international expansion.

“In a world where globalisation is increasing at a pace, our transformational partnerships put us together in a unique position to become the clear world leader in both pharmacy and pharmaceutical wholesale. I truly believe that we have the brands, intellectual capital and, most importantly, the management expertise to create value for our stakeholders across the world for many years ahead.”

Reconciliations of trading profit to profit from operations before associates and joint ventures, and underlying profit (after tax) to profit for the year, are set out in the financial review section of this announcement.

Financial information for the prior year has been re-stated for the adoption of the revised IAS 19 Employee Benefits standard.

A glossary of key terms is provided in the full press release located at the bottom of this page.

Further information is contained within the Group’s Annual Report 2012/13. In addition, the Group’s Corporate Social Responsibility Report 2012/13 will be published on this website in September 2013.

A press conference will be held on 15 May 2013 at 11.30 am (BST) which will be webcast simultaneously and available to view thereafter.

For further information, please contact:

Media Relations:
Yves Romestan/Laura Vergani/Katie Johnson, Alliance Boots: +44 (0)207 980 8585
James Murgatroyd/Katie Lang/Yim Wong, RLM Finsbury: +44 (0)207 251 3801

Investor Relations:
Gerald Gradwell, Alliance Boots: +44 (0)207 980 8527 (UK) / +1 646-688-1336 (US)

Full press release as PDF - 15 May 2013

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