Revenues and trading profits for 2011-12 were both up for Alliance Boots this year with the former seeing a boost of 18.4% (to £23,009m) and the latter increasing by 12.4% (to £1,195m).
Strong cash generation from operations was pin pointed as significant in company statements. Cash generated from operations for the year was reported as £1,601m and during the 2011-12 financial year Boots Alliance invested £262m in capital expenditure.
Results for the pharmaceutical wholesale division of Alliance Boots were stronger than those for the Beauty division. Pharmaceutical wholesale revenues were up 27.9% on the previous year and trading profit was up 24.7%.
Alliance boots works closely with pharmaceutical manufacturers in the UK, helping them to increase control of their product distribution and to outsource non-core activities. Alliance Boots’ services to manufacturers include pre-wholesale and contract logistics.
Looking forward, Alliance Boots’ executive chairman, Stefano Pessina commented: “In the coming year, we expect the economic environment to remain difficult with continuing pressure on both consumer and governmental expenditure. This will generate both challenges and new opportunities for us.”
He continued, “We are confident about our future prospects and ability to pursue profitable growth, both organically and through further international expansion.”