| 12 months to 31st March 2005 (£m) | Sales | Profit | ||
|---|---|---|---|---|
| Boots The Chemists | 4,651 | +3.8% | 470 | - 11.8% |
| Boots Healthcare International | 523 | +3.6% | 88 | +8.9% |
| Boots Opticians | 183 | - 8.6% | 4 | - 67.4% |
| Boots Retail International | 48 | +12.3% | (8) | +21.2% |
| Group & other costs | 37 | -37.9% | (46) | 0.0% |
| Discontinued operations | 27 | (7) | ||
| Group sales and operating profit | 5,469 | +2.7% | 501 | -8.7% |
| Interest | (20) | |||
| Profit before tax and exceptionals | 481 | -11.4% |
Good morning.
I would like to start with a summary of group results for the year.
Group sales were £5,469 million, up 2.7%. Operating profit was down 8.7% at £501million.
In the year, Boots the Chemists profit was down 11.8% reflecting the cost of modernising the business and the slowdown in consumer spending in the final quarter.
Boots Healthcare International increased profit by 8.9% and made good progress in the third year of its current four year plan.
Boots Opticians had a difficult year. Sales fell 8.6% owing to disruption as a result of the exit from Dentistry and lower consumer spending on fashion items in the fourth quarter. As a consequence, profits fell by £8 million to £4 million. Opticians is a good fit with the BTC business and we will drive further efficiency through integration this year.
Boots Retail International increased sales by 12.3% and reduced losses to £8 million. This business is trading in line with its plans to reduce losses and is now profitable in its Asian markets. Good progress has been made in the trials with Target and CVS in the US and extensions to these trials are planned to gather further information.
Group costs were unchanged at £46 million.
Interest payable was £20 million, an increase on the previous year reflecting the effect of share repurchases
As a result, profit before tax and exceptionals was £481million, down 11.4% on the previous year.
