UK: Walgreens confident in face of Brexit and Rite Aid uncertainty

Walgreens Boots Alliance executives warned of a long period of uncertainty in the United Kingdom. following the nation’s vote to leave the European Union. The UK, where Walgreens owns the Boots pharmacy chain, is the company’s second-largest market by sales after the United States.

“The situation is very volatile at this time,” said CEO Stefano Pessina on Wednesday. “The period of uncertainty will be quite long, whatever happens.” On Wednesday, Walgreens Boots posted a slight increase in overall sales for its fiscal third quarter ended May 31, as the company filled more prescriptions at its US business.

The sale of drugs far outperformed sales growth in the front of the company’s community pharmacies, where Walgreens is focusing on more profitable sales such as beauty products and gifts rather than pushing discounts on sodas and snacks. Walgreens Boots is in the midst of buying smaller community pharmacy chain Rite Aid Corp. for about $9.4 billion.

Pessina expressed confidence that the deal, which is under review by US antitrust regulators, would close as planned before the end of the year. Sales in Walgreens’s pharmacy business jumped 6% on a comparable basis, nearly double the prior quarter’s rate, as it filled 4.5% more prescriptions thanks to rising volume from Medicare Part D.

Full Content: Pharmacist

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