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Strong cash flow and lower interest rates helped reduce net borrowings.
November 3, 2010
By: Jamie Matusow
Editor-in-Chief
Alliance Boots has said strong sales of makeup and anti-wrinkle creams helped it increase market share in its core health and beauty arm. Boots reported a 2% rise in revenues in health and beauty in the six months to September 30 to £3.4 billion, boosted by its self-selection cosmetics and No7 Protect & Perfect ranges. The Nottingham-based firm, which has around 3,250 stores in ten countries, said its tie-ups with supermarket Waitrose and childrenswear store Mothercare also meant overall revenues improved by 6% to £8.9 billion. Chief executive Andy Hornby says strong cash flow and lower interest rates had helped it reduce its net borrowings. “We are pleased with the way the group has performed given the challenging trading conditions across Europe. Boots has delivered a good performance in a difficult UK consumer environment and we have increased market share in our core health and beauty categories,” he says. In the UK, the health and beauty division posted a 1.8% increase in revenues on a like-for-like basis. Overall sales were boosted by the company’s pharmaceutical wholesale business, which saw a 7.7% rise in revenues to £5.9 billion. Boots said following the strong first half it was well positioned for the important Christmas trading period and that it expected to deliver strong results for the financial year to March 31. It has extended its Waitrose partnership, with 12 stores now selling a combined Boots and Waitrose lunchtime food offering, as well as health and beauty products.
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