Profits down despite increased revenues at Boots Ireland
The Irish arm of pharmacy retailer Boots last year recorded a 16pc decrease in pre-tax profits to €21.55m in spite of revenues continuing to rise.
Boosted by the opening of two new stores, Boots Retail (Ireland) Ltd's revenues last year increased by 3pc going from €367m to €378.44m.
According to the directors' report, "the company delivered strong performance in the financial year, as a result of new store openings, good retail trading, partially offset by lower disbursement rates".
The directors state that "our store portfolio was further strengthened with a net two store openings during the year".
At the end of August last, Boots Ireland operated 86 stores. Earlier this year, the data revealed a Boots store at Dublin Airport clocked up revenues of €8.36m in 2017.
The company's operating profit decreased by 15pc from €24.73m to €21m and the directors state that the reduction in operating profit margin "is driven by inter-company management charges and transfer pricing with Boots UK Ltd partially offset by increased revenue performance".
Numbers employed by the firm last year decreased from 1,678 to 1,638, with staff costs last year increasing marginally.
Remuneration to directors last year totalled €462,000, with the best-paid director receiving €246,000 - made up of remuneration of €220,000 and €26,000 in company contributions to defined contribution schemes.
The profit last year takes into account non-cash depreciation costs of €6m.
The accounts show the firm's operating lease rentals last year totalled €23.96m.
The firm's shareholder funds last year totalled €201m, made up of €102.99m in share premium and €98.75m in accumulated profits. The company's cash pile increased going from €4.6m to €4.85m.
The firm's cost of sales totalled €171m, while distribution costs totalled €165m and administrative expenses came to €21.27m.