Strong make-up sales help Alliance Boots
High street giant Alliance Boots said strong sales of make-up and anti-wrinkle creams helped it increase market share in its core health and beauty arm.
Teamwork: Tie-ups with Waitrose and Mothercare helped revenues improve
Boots reported a 2% rise in revenues in health and beauty in the six months to September 30 to £3.4bn, boosted by its self-selection cosmetics and No7 Protect & Perfect ranges.
The Nottingham-based firm, which has around 3,250 stores in ten countries, said its tie-ups with supermarket Waitrose and childrenswear store Mothercare also meant overall revenues improved by 6% to £8.9bn.
Chief executive Andy Hornby said strong cash flow and lower interest rates had helped it reduce its net borrowings.
He said: 'We are pleased with the way the group has performed given the challenging trading conditions across Europe. Boots has delivered a good performance in a difficult UK consumer environment and we have increased market share in our core health and beauty categories.'
In the UK, the health and beauty division posted a 1.8% increase in revenues on a like-for-like basis. Overall sales were boosted by the company's pharmaceutical wholesale business, which saw a 7.7% rise in revenues to £5.9bn.
Boots said following the strong first half it was well positioned for the important Christmas trading period and that it expected to deliver strong results for the financial year to March 31.
It has extended its Waitrose partnership, with 12 stores now selling a combined Boots and Waitrose lunchtime food offering, as well as health and beauty products.
In addition, Boots now sells a Mothercare clothing range in 370 stores.
In March, Boots posted trading profits above £1bn for the first time, reporting £1.07bn in the year to March 31 - up 12.7% on a year earlier.
Shortly after the full year results, it emerged Mr Hornby, the former boss of rescued bank HBOS earned more than £2m in pay and benefits for just nine months in his new job at Boots.
Boots was bought out by current executive chairman Stefano Pessina and private equity firm Kohlberg Kravis Roberts in 2007 for £11.1bn.
AB Acquisitions was created to buy Boots - the first ever private equity takeover of a FTSE 100 firm - and took on a debts of more than £8bn to fund the takeover.
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