Alliance Boots has reported a rise in profits and is confident about the year to come

The private equity-backed health and beauty retailer and wholesaler generated an 11.3 per cent rise in EBITDA to £1.25bn on sales up 15.5 per cent to £20.5bn in the year to March 31. Trading profit jumped 11.6 per cent to £953m.

The flagship Boots UK business notched up a 3.2 per cent rise in revenues and like-for-likes moved ahead 1.3 per cent.

Boots UK’s retail health category sales rose 1.6 per cent to £756m and beauty and toiletries rose 0.4 per cent to £2.06bn.

There are now 4.8 million members of the Boots Health Club – up 30 per cent year on year.

The retailer said it was continuing to develop its No7 cosmetics and skincare brand, including the recently launched No7 Protect & Perfect Intense Beauty Serum.

Alliance Boots executive chairman Stefano Pessina said the group had strong cashflow and was benefiting from historically low interest rates.

He said: “This is a great group with great brands and market leading positions in attractive markets. We are fully committed to the development and growth of Alliance Boots and believe that we are on track to become the world’s leading pharmacy-led health and beauty group.”