Boots online sales saw a 30% increase, representing 22% of the retailer's total retail sales
Walgreens Boots Alliance (WBA), the parent company of Boots UK, has announced its financial results for the first quarter of fiscal 2025, reporting sales growth across all business segments.
Total sales for the quarter reached $39.5 billion (approximately £32.39 billion), marking a 7.5 per cent increase from the year-ago quarter, with a 6.9 per cent rise on a constant currency basis.
The International segment contributed approximately £5.25 billion ($6.4 billion) in sales, reflecting a 10.2 per cent increase compared to the prior year, driven by a 3.6 per cent favorable currency impact.
On a constant currency basis, sales grew 6.5 per cent, with Boots UK reporting a 4.5 per cent rise in sales. Its German wholesale business experienced strong growth of 11 per cent.
Tim Wentworth, CEO of Walgreens Boots Alliance, commented: "Our first quarter results reflect our disciplined execution against our 2025 priorities: stabilizing the retail pharmacy by optimizing our footprint, controlling operating costs, improving cash flow and continuing to address reimbursement models.”
“While our turnaround will take time, our early progress reinforces our belief in a sustainable, retail pharmacy-led operating model."
Boots UK performance
Boots UK reported strong Q1 results, with comparable pharmacy sales soaring by 10.9 per cent compared to Q1 of the previous year.
Comparable retail sales rose by 8.1 per cent compared to the year-ago quarter, with growth across all categories.
Online sales through Boots.com grew by 30 per cent or 23 per cent on a constant currency basis, fueled by strong Black Friday performance, accounting for 22 per cent of Boots' total retail sales.
U.S. Retail Pharmacy performance
In the U.S., Walgreens' Retail Pharmacy segment posted first-quarter sales of $30.9 billion (approximately £25.38 billion), an increase of 6.6 per cent from the previous year.
Pharmacy sales and comparable pharmacy sales rose by 10.4 per cent and 12.7 per cent respectively in the quarter, driven by higher branded drug inflation and prescription volume.
However, retail sales saw a decline of 6.2 per cent, with comparable retail sales falling by 4.6 per cent, mainly due to a weaker cough, cold, and flu season and lower sales in discretionary categories.
FY25 Q1 operating loss
Despite the solid sales performance, WBA reported an operating loss of $245 million (£201.9 million), a significant decline from the $39 million (£31.98 million) loss in Q1 of the previous year.
The increase in operating loss was attributed to higher costs related to the Footprint Optimization Program in the U.S. Retail Pharmacy segment, lower retail sales and the absence of prior year sale-leaseback gains.
The net loss for the quarter was $265 million (£217.3 million), up from a $67 million (£54.94 million) loss during the same period last year, primarily driven by higher operating loss.
In a strategic move, Boots UK completed the permanent closure of 300 stores in the summer of 2024, reducing its UK store portfolio from 2,200 to approximately 1,900 locations.
