Boots has revealed an operating profit of £8m for the 2021 financial year, although it continues to see small decreases in both retail and pharmacy revenue.
It ultimately sustained a post-tax loss of £111m in 2021, although this is a smaller loss than the £258m post-tax loss reported in 2020.
The multiple’s annual report and financial statements, published on 25 August 2022, show the company’s financial position as of 31 August 2021.
In the same year, Boots closed 60 bricks-and-mortar stores, bringing the current total to 2,276.
The company made a gross profit of £2,102m for the 2021 financial year. When distribution costs, administrative expenses and other operating income are taken into account, this amounts to an operating profit of £8m. This is a stark change from 2020, when the multiple posted an operating loss of £245m. In the report, Boots ascribed some of this improvement to lower operating costs and additional government funding of £47m.
Overall revenue has decreased by 2.3% to £5,812m, it said — down from £5,948m in 2020.
Pharmacy sales made up 39.3% of all sales in 2021 — up slightly from 38.7% in 2020, but pharmacy revenue decreased by 0.7%, down to £2,283m in 2021 from £2,300m in 2020. However, the reduction in pharmacy revenue was smaller in 2021 compared to the year before, when a decrease of 0.9% was posted.
The report said that, during 2021, Boots “continued to experience certain impacts of COVID-19″.
“Government policies and other initiatives designed to reduce the transmission of COVID-19, including travel restrictions, working from home advisories and restriction of social events resulted in reduced footfall in stores.
“This had an adverse impact on sales during these periods, particularly in major high street, train station and airport locations.”