Alliance Boots "confident" of savings after merger
Newly merged pharmacy business Alliance Boots has today said that it is confident of delivering annual cost savings of £60 million by the end of its second year of operation.
Confirming the completion of the merger between the Boots Group and Alliance Unichem, Alliance Boots chief executive Richard Baker added that the company intended to deliver £100 million worth of savings by its fourth full year.
As trading in shares in the new company began on the London Stock Exchange, Boots and Alliance Unichem also published their last trading statements as separate companies.
Boots reported that sales across its pharmacy business were up 3.9 per cent in the three months to June 30th, based on strong early season sales of sun and hay fever-related products.
Alliance Unichem said that its operating profits rose by 11 per cent in the six months to June 30th, to £135.8 million. Revenue for the period was up 2.2 per cent to £4.7 billion.
Welcoming the completion of the merger of the two companies, Alliance Boots chief Mr Baker said: "The merger will enable us to improve the offering for both our wholesale and retail customers.
"Despite the huge additional effort inevitably required by this process our businesses have remained focused and delivered solid results that keep us on track for the year.
"We have a firm foundation for our future success and we are determined to deliver the benefits of this to our enlarged group of shareholders in the years to come," he added.