Boots Ireland last year recorded a 16% decrease in pre-tax profits to €21.55 million despite the fact that revenues continued to rise during the same period.
Following the opening of two new stores in 2017, Boots Retail (Ireland) Ltd's revenues last year increased by 3% going from €367 million to €378.44 million, reports the Irish Independent
According to the directors' report, "the company delivered strong performance in the financial year, as a result of new store openings, good retail trading, partially offset by lower disbursement rates."
The directors stated that, "our store portfolio was further strengthened with a net two store openings during the year".
At the end of August last year, Boots Ireland operated 86 stores.
The company's operating profit reportedly decreased by 15% from €24.73 million to €21 million and the directors state that the reduction in operating profit margin, "is driven by inter-company management charges and transfer pricing with Boots UK Ltd partially offset by increased revenue performance".
© 2018 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.