Boots The Chemists
| 6 months to 30th September |
2003 £M |
2004 £M |
|
Like for Like |
|---|---|---|---|---|
| Sales | 2,071 | 2,171 | +4.9% | +3.8% |
| Gross margin movement | -180bp | |||
| Operating profit | 272 | 207 | - 23.8% | |
| Operating cash flow | 219 | 89 | - 59.5% |
Notes
Turning now to Boots The Chemists performance highlights.
Sales at £2,171 million are up 4.9% in total or 3.8% on a like for like basis. The contribution from new space is becoming significant, 0.5 percentage points higher than the last financial year.
Gross margin percentage was 180bps down on the same period last year.
When we spoke to you in May we described a programme of investment to make Boots more modern, competitive and efficient. These costs would substantially reduce profits this financial year and particularly in the first half due to the phasing of various elements. As a result, operating profit is down 24% at £207 million.
Operating cash flow was down sharply as a result of this lower profitability and short-term investment in working capital.
