UK retailer sees profits drop

British healthcare retailer and chemist Boots today reported a drop in interim profits by almost 3 per cent to £279.6 million (€436.6m) for the first six months ended 30 September 2002. Profits were impacted by a £40m investment in Boots the Chemist and Boots International and increased pension costs.

Profit before tax was however up by 1.8 per cent to £253.3 million and turnover on continuing operations was up 4 per cent to £2.4 billion.

Boots, which sells own-brand vitamins and supplements, said it remained confident that it will reach its full year forecasts. Commenting on the half year, chief executive Steve Russell said: "I am encouraged by our performance in the first half. There have been good sales increases in Boots The Chemists and Boots Healthcare International, and our programme of investment in retail excellence is on track.​

"We are investing now in stores, people and products for higher sales and profit growth in the future. We have the right product ranges and promotional plans for the important Christmas trading period. I am confident that we will deliver a full year performance in line with our expectations at the start of the year,"​ he added.

The company said it aimed to see the next stage of productivity programme yield more than £100 million of additional cost savings from non-store areas.

There also seemed to be progress in the first half from Boots The Chemists, particularly in the second quarter, which rose by 5.7 per cent like for like. Boots Healthcare International sales were also up 12 per cent on the same period last year.