Chemist + Druggist is part of Pharma Intelligence UK Limited

This is operated by Pharma Intelligence UK Limited, a company registered in England and Wales with company number 13787459 whose registered office is 5 Howick Place, London SW1P 1WG. The Pharma Intelligence group is owned by Caerus Topco S.à r.l. and all copyright resides with the group.

This copy is for your personal, non-commercial use. Please do not redistribute without permission.

Printed By


‘Rationalising floor footprint’ contributes to 16% Lloyds profit rise

Lloydspharmacy’s parent company has reported a 16% profit increase across its European business, after rationalising “floor footprint” and streamlining back office functions.

Adjusted operating profit for McKesson’s European pharmaceutical solutions division – which includes Lloydspharmacy and wholesaler AAH – in the three months to December 31 was $80 million (£61.4m). This is a 16% increase on the same period the previous year, it said in its latest financial report published yesterday (February 4).

This growth was “driven in part by lower operating expenses as a result of actions previously taken to rationalise floor footprint and streamline back office functions”, McKesson executive vice president and chief financial officer Britt Vitalone said.

The rationalisation “also includes reorganisation and consolidation of our business operations and related headcount reductions as well as the further closures of retail pharmacy stores in Europe and closure of other facilities”, a McKesson spokesperson told C+D yesterday (February 4).

The latest increase follows a 19% drop – not taking currency rates into account – for the three months to September 30 last year. At the time, McKesson attributed this drop to “the challenging retail pharmacy environment in the UK”.

Monitoring the UK

Revenue for the European business was up 3%, once currency rates had been taken into account. McKesson said this was “driven primarily by market growth in the pharmaceutical distribution business”.

McKesson continues to “monitor the retail pharmacy funding dynamics” in the UK, CEO Brian Tyler said. He added that the UK retail pharmacy sector “experienced underfunding by the NHS” and although McKesson reported a “modest improvement” in the previous quarter, “further upward revisions have not yet been implemented”.

“We continue to monitor the situation in the UK closely and engage in active dialogue with the NHS related to industry funding, and the role the pharmacy can play in managing [the] NHS's overall cost, quality and access challenges,” Mr Tyler said.

Meanwhile, revenue across the whole McKesson group was up 6% once currency rates had been taken into account, compared to the same period last year – rising to $59.2 billion (£45.4bn). This was primarily “driven by growth in the US pharmaceutical and speciality solutions segment”, McKesson said.

Lloydspharmacy attempted to close or sell 190 pharmacies in 2018, in an effort to cope with the funding cuts in England.

Announcing its 2018-19 financial results in May last year, McKesson said it expected to close more pharmacies across Europe.

How many Lloydspharmacy branches closed in your area in 2019?

Related Content


Pharmacy Manager
Newquay, Cornwall
£ Competitive

Apply Now
Latest News & Analysis
See All



Ask The Analyst

Please Note: You can also Click below Link for Ask the Analyst
Ask The Analyst

Thank you for submitting your question. We will respond to you within 2 business days. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts