The company said that its retail business was on track with continued expansion in the international and UK community pharmacy businesses. Good weather in July and a particularly strong performance in its Health category have helped to boost sales. The Health business benefited from increased membership of the Boots Health Club and increased provision of services such as Medicine Usage Reviews. Within the Beauty and Toiletries category, cosmetics and fragrance sales continue to grow strongly.
Alliance Boots said that its wholesale businesses have continued overall to perform well, highlighting a new agreement with Pfizer to be its sole logistics services provider for the distribution of prescription medicines to pharmacies in the UK.
Alliance Boots also received regulatory approval for its acquisition of the UK short-line pharmaceutical wholesale business of Cardinal Health and the transaction is therefore expected to be completed soon.
In France, it is restructuring its warehouse network to improve operational efficiency and leave the French business more flexible to changing market conditions. It also commented that there is a possibility of further government action in France to contain healthcare expenditure in the second half of the current year.
The company will announce its half year results in mid-November.