Boots profits fall 9.6% on weak consumer spending

10/27/05 - newratings.com

LONDON, October 27 (newratings.com) – Boots Group Plc (BOG) reported a 9.6% slump in profits for the last six months, citing weak consumer spending and restructuring costs as the reasons.

Boots' pre-tax profits for the six months to September 30 fell 9.6% to £163 million on account of ongoing restructuring activities and weak consumer spending. The company's profits during the period were adversely affected by weak demand for the Atkins diet products. Boots expects its markets to remain challenging during the forthcoming Christmas season. Boots' CEO, Richard Baker, said that the company is making progress in strengthening its position in the UK's health & beauty market, despite the sluggish results for the last six months. Boots is likely to merge with Alliance UniChem (AUN-GBX) during 2H06 to become the largest retailer and wholesaler of drugs in the UK.