Summary
- Substantial progress against our plans
- BTC remains a successful and profitable business
- Challenging environment
- Building a better Boots
- The Health & Beauty Expert
Notes
We have made substantial progress in taking the necessary actions to move us away from the unsustainable model of the past. We are convinced that we are on the right track.
THIS IS A SUCCESSFUL AND HIGHLY PROFITABLE RETAILER. TWELVE SUCCESSIVE QUARTERS OF GROWTH AHEAD OF THE BRC AVERAGE AND 10% PROFIT ON SALES ARE TESTAMENT TO THAT.
After the disappointment of fourth quarter sales, there is a real danger that we lose sight of the fact that we have continued top line momentum in spite of a difficult market and continued to deliver good profits and cash returns to shareholders. And many people outside Boots have no sense of the investments we have had to make and the magnitude and complexity of the change programme we have successfully delivered.
The environment has been tough and we expect it to remain so. This means we have to manage a very tight ship as we concentrate on driving sales hard, closely managing our trading margin and working very hard to mitigate the costs increases that are coming through.
We have made good progress on the task the board set us to make Boots a modern, competitive and efficient retailer and it is important to understand that there are no quick fixes and there is still much to do.
AS WE EMBARK ON THE NEXT PHASE OF BUILDING A BETTER BOOTS, I AM ENCOURAGED.
WE HAVE A CLEAR FOCUS ON THE PRIORITIES THAT WILL STRENGTHEN OUR POSITION AS THE HEALTH AND BEAUTY EXPERT.
Thank you very much for listening. We will now be happy to take your questions.
