Boots got a massive €31 million payday from its Irish stores

BOOTS IRELAND PAID out a huge €31 million dividend to its parent company at the end of August, up from €15.4 million in the previous period.

According to newly filed accounts for Boots Ireland, the company took in €453 million in sales during the period from the start of April 2014 to the end of August 2015.

The accounts cover a 17-month period instead of the normal 12 because the firm changed its financial year to match up with other units in the Boots group.

In the 12 months to the end of March 2014, the Irish unit, which is owned by Walgreens Boots Alliance, reported turnover of €288 million.

Cost of sales rose from €148 million to €237 million to the end of August 2015, while distribution and administrative expenses jumped from €130 million to €192 million.

Big payment to parent

Overall, pre-tax profits rose from €20 million during the 2014 financial year to almost €25 million in the following period, while the full-year profit rose from €16.9 million to €19.7 million after the company paid out taxes of just over €5 million.

The pharmacy chain also paid out a dividend of €31 million at the end of the period, up from €15.4 million in the year to the end of March 2014.

This was paid to the shareholders of Boots Ireland. All of the shares of the company are held by a firm called Alliance Boots Holdings, a holding business for Walgreens Boots Alliance. Walgreens, one of the largest drug shop chain in the US, merged with Boots Alliance in 2014.

Boots, which is based in the UK, has nearly 100 Irish outlets and employs about 1,600 people here. Staff costs amounted to €85.5 million during the 17 month period, up from €55.2 million during the prior 12-month stretch.

A defined benefit scheme was closed down during the prior period with a final settlement payout of €1.5 million.

New stores

Boots opened five stores in Ireland during the 17-month period and closed one. It has opened a further three shops since the end of August 2015.

The directors’ report states that Boots Ireland delivered a “strong performance during the period” which it attributed to new store openings and good retail growth, which includes the expansion of its dedicated Irish website, launched in June 2013.

Walgreens Boots Alliance has thousands of outlets across the UK and last year recorded net sales of over $100 billion in the 12 months to the end of August.

Irishman Ken Murphy is a senior executive at the company and was recently appointed chief commercial officer and president of global brands.