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The high street pharmacy chain, Boots, has reported a double-digit decline in profits for the fiscal year ending August 31, 2018.

According to its 2018 annual report, published on May 10, Boots earned £317 million as profit, an 18.3 decrease compared to the £388 million profit in 2017. The revenue also fell 2.3 percent to £6.8 billion, while the operating profit fell 22.3 percent to £391 million.

It’s parent company, Walgreens Boots Alliance, last month reported a 23% loss of income and said it would “review underperforming stores and seek out opportunities for consolidation”.

The latest report said, “the company’s revenue is subject to the influence of seasonality, with the second fiscal quarter typically the strongest as a result of the winter holiday period. This seasonality affects the company’s proportion of sales between retail and pharmacy during certain periods.”

“The Company’s Pharmacy sales, gross profit and gross profit margin are impacted by governmental agencies seeking to minimise increases in the costs of healthcare, including pharmaceutical drug reimbursement rates.”

Boots intends to continue operating in the pharmacy-led health and beauty retailing.

It aims to tackle risks related to regulation changes through active involvement in policy-making processes, understanding and contributing to government thinking on regulatory matters and building relationships with regulatory bodies.