British pharmacy chain Boots Group reported higher-than-expected fourth-quarter sales today.
The 1,400-strong chain, which has some 50 stores in the Republic, said sales in the final quarter of 2005 were up 3.3 per cent, with like-for-like growth of 2.2 per cent.
That compares with a drop in like-for-like sales of 0.7 per cent in the third quarter and a drop of 0.2 per cent for the year as a whole. The few analysts who had forecast fourth-quarter growth had not anticipated such an upturn.
Boots is in the process of merging with pharmacy chain Alliance UniChem to create a pan-European drugs retailer and distributor with 3,000 stores and more than £13 billion in sales.
Boots said gross margin, operating cost growth and working capital are all expected to be in line with its previous guidance, but it said its opticians services outperformed. Its recently sold healthcare division, which makes drugs, also did better than expected in its final month within the group.
The interest charge was anticipated to be £12 million lower than consensus forecasts, Boots said. Analysts said that meant profit forecasts would go up.
The company's shares closed at 712-1/2p yesterday, up 9.3 per cent in the last 12 months, valuing the firm at £3.46 billion.