Walgreens Boots Alliance has recorded a decline its third-quarter profits as the performance of its international arm was dragged down by Boots’ falling sales.

The health and beauty titan posted an 11.7% fall in adjusted operating income to $1.7bn in the three months to May 31, 2019, though sales increased 0.7% to $34.6bn.

The retail group’s international division posted a 1.6% decline in sales to $2.8bn on a constant currency basis, primarily due to a 1% fall in sales at Boots.

Boots’ like-for-like retail sales dropped 2.6%, however, it was “broadly gaining retail market share amid weakness in certain categories”.

Boots’ like-for-like pharmacy sales increased 0.8% during the period.

International adjusted gross profit fell 1.6%, primarily due to lower pharmacy margin and retail sales at Boots.

The retail group’s US division recorded a 2.3% uplift in sales to $26.5bn.

Walgreens executive vice chair and chief executive Stefano Pessina said: “Following a difficult second quarter, we made progress in the third quarter against the strategic goals we set, and are pleased to report an improvement in our US comparable growth compared with the first half of the year.

“We will continue our aggressive response to rapidly shifting trends and have already seen improved US retail sales and prescription growth and are making good progress in implementing our transformational cost management program. Together, this gives us the confidence to reiterate the fiscal 2019 guidance we previously provided.”

Topics

Store gallery: Inside Boots’ new-look London flagship