There is “significant interest in Boots” – but “at the right time,” the chief executive of US-based Walgreens Boots Alliance has said amid national media speculation that the UK’s largest pharmacy multiple could be sold off. 

In a conference call yesterday (June 27) to discuss WBA’s financial performance in the three months to May 31, CEO Tim Wentworth welcomed a strong performance from Boots with both pharmacy sales and retail sales higher than at the same time in 2023. 

He said that a recent review of the UK company “showed that we have attractive options to unlock value in this business” and said “we believe there is significant interest in Boots at the right time”.

However, there do not appear to be any immediate plans to sell Boots, with Mr Wentworth adding that currently, Boots’ “growth, strategic strength and cash flow remain key contributors to the company”. 

“We are committed to continuing to invest in Boots UK and find innovative ways for this business to fulfil its potential,” he said.  

In recent months there has been speculation in City of London that WBA could revisit plans to divest Boots after a sales attempt was called off in 2022.

A financial statement published yesterday revealed that WBA has closed 581 Boots UK stores through its Transformational Cost Management Programme (TCMP) out of a planned 650, while in the US 673 stores have closed. 

In the months leading up to June Boots “achieved another sequential quarter of market share gains from strength in both physical and digital channels,” Mr Wentworth said. 

The strong quarterly performance from Boots is in marked contrast to the US network of Walgreens pharmacies, where “persistent pressures on the US consumer and the impact of recent marketplace dynamics” have “eroded pharmacy margins,” said Mr Wentworth.

WBA lost a total of $5.6bn in the first nine months of its 2024 fiscal year, $2.7bn more than the losses it made in 2023.  

Following the publication of its quarterly results, WBA share prices fell by 22 per cent, reaching their lowest level since 1997. 

Mr Wentworth said that store closures will allow WBA to focus its efforts on improvements “both in the back of the store and in the front of the store” to help the company “meet the consumer where they are today and where they need us to be”.

He commented: “We have the right team and the right strategy to enhance our focus, strengthen our own execution and ultimately turn around the business performance. 

“There is a clear market need for our services, but our economics are not currently structured in a way that is sensible for our shareholders.”