Boots sees brand products sales up 6%, good growth in cosmetics
27 Jul '05
3 min read
Volume growth in Dispensing is offset by price deflation of 5% including both the effect on branded medicines of the recent Pharmaceutical Price Regulation Scheme (PPRS) review (effective 1st February), and price reductions on some generic medicines implemented last year and which have yet to anniversary. The new Pharmacy contract came into force on 1st April. This reduces funding for medicine reimbursement but increases fees for service provision and may introduce some volatility in monthly Dispensing settlements while the new arrangements bed in. The likely full year impact of these regulatory changes will be updated at the half year.
The quarter saw good performance in Beauty, with particularly good growth in cosmetics. Further investment will be made in this core area with 30 new beauty halls planned over the remainder of the year.
Over The Counter medicines and Toiletries also performed well. Sales were weaker in the Lifestyle categories with continued decline in the photo market and a slow start to summer ranges. Overall, sales performance in BTC's non-pharmacy businesses has remained at similar levels to those seen in February and March although this has been against an increasingly competitive background.
Boots Healthcare International Boots Healthcare International (BHI) sales growth in the quarter was 5.8% in Sterling, up 6.8% on a comparable basis. Sales of core brands were up 8.9%.
The proposed disposal of BHI is proceeding in line with plan and is expected to complete within the current financial year.