LloydsPharmacy termed 2018-19 as “another exceptionally challenging period,” after reporting an 8.5 percent decrease in turnover.
In the financial statements for the year ending March 31, 2019, filed recently at the Companies House, the pharmacy chain blamed the pharmacy funding cuts in England for increasing the competition like never before.
“The aggressive targeting of patient by mail order pharmacies means that we have to strive ever harder in order to retain patients and customers,” the report added.
LloydsPharmacy saw a year-over-year turnover decrease of 8.5 per cent to £1.97 billion, which the company attributes to the reduction of pharmacy store portfolio as announced in the prior fiscal year.
Gross profit as percentage of turnover decreased 1.6 per cent compared to the previous year due to the “reductions in pharmacy remunerations and reimbursements.”
“We have seen some loss of market share as a result of further closures and disposals, but market share of the remaining pharmacies has been maintained through a focus of providing relevant and competitive services in our local and national markets,” the report said.
Commenting on the financial report, a McKesson UK spokesperson told Pharmacy Business that the company had to make appropriate commercial decisions because of the increasing financial pressures.
“Good business practice requires us to regularly review our estate and make appropriate commercial decisions including buying and selling pharmacies. We need to operate our stores profitably whilst ensuring patient safety and colleague wellbeing and where we believe this isn’t possible, we may decide to close a pharmacy rather than put these factors at risk,” the company spokesperson said.
“These decisions need to be made because of increasing financial pressures, including business rates and changes to pharmacy funding.”