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'Negative' funding continues to impact Boots pharmacy sales

Boots pharmacy sales financial results
Walgreen Boots Alliance: Wholesale division sales increased "ahead of the company’s estimate”

Boots' parent company has blamed “negative” pharmacy funding in the UK for its continued drop in sales.

Walgreens Boots Alliance said its retail pharmacy international division – which includes Boots UK – has seen sales in pharmacies drop by 0.1% in the three months to May 31, compared with the same period last year.

This is “primarily due to the negative impact of pharmacy funding the UK”, the health and beauty giant said in its latest financial report, published this afternoon (June 29).

However, “comparable retail sales” increased by 0.4%, Walgreens Boots Alliance pointed out, “reflecting growth in the UK”.

The slight drop in pharmacy sales is a significant improvement on the three months to February 28, when its retail pharmacy international division recorded a 3.7% drop in pharmacy sales, compared to the same period in 2015-16.

Wholesale growth

The group's wholesale division recorded a 3.7% sales increase. This was “ahead of the company’s estimate” and reflects “growth in emerging markets and the UK”, the business said in its report.

Walgreens Boots Alliance CEO Stefano Pessina said the group’s overall results “continue to meet our expectations” and the business “remain[s] confident in the long-term growth of the company”.

Last week, Lloydspharmacy's parent company Celesio UK said its "significant" 29.1% drop in earnings was a result of last year's category M clawback and funding cuts in England.

7 Comments
Question: 
How are the funding cuts affecting your pharmacy?

Best Farma, Ecommerce

C&D assisting Boots with their propaganda I see.

Valentine Trodd, Community pharmacist

Boo hoo...

Ben Merriman, Community pharmacist

Funding for April has not increased.  It has gone up from March but only because the reduction in funding for 16-17 was squeezed into just four months.  Funding for April is still down on November 16's funding.  

Dave Downham, Manager

"Funding for April has not increased. It has gone up..."!!!

Ben Merriman, Community pharmacist

It's wonderful when you read whole sentences and in context...

Dave Downham, Manager

I don't disagree!

Dave Downham, Manager

That's a load of BS from Boots - funding was increased for April and May while the previous quarter will have had the full brunt of the cuts. Estimates used for May? Would suggest their beancounters are not earning their money.

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