Bestway National Chemists Limited – the company trading as Well Pharmacy – has said that it will continue “to review its retail pharmacy estate” having already axed around 50 pharmacies in a year.
The company’s annual report published this week (March 25) revealed that, while Well was able to cut its previous year’s pre-tax loss of £36.7m, it still suffered a £13.9m loss in the year ending June 30 2024.
The report added that at year-end, it operated 733 pharmacies – down a net 49 from the previous year amid both sales and acquisitions.
Read more: Well Pharmacy reveals £29m loss in 2023 amid ‘significant challenges’
Some seven premises were sold to fend off Competition and Markets Authority (CMA) concerns about “potential overlaps” between pharmacies after the company acquired Lexon UK in June 2023, it said.
But after making these disposals, “the company also took the decision to review its retail pharmacy estate”, the report added.
It said that its “programme” to identify and dispose of pharmacies that are “non-core” to the business’ operational criteria “remains ongoing”.
Read more: CMA looks to give Well’s merger with Lexon the go ahead
Despite this, the report added that in the 2024 financial year the company has “continued to target and complete the acquisition of new pharmacies”.
It said that among them were “John Bell and Croyden limited and L&P North Limited”, providing a total of 11 new locations across England and Scotland.
75% profit plunge
Meanwhile, Well sister company and wholesaler Bestway Pharmacy NDC Limited also suffered diminishing profits in the year ending June 30 2024.
Its annual report, published yesterday (March 26), revealed a profit before taxation of £2.5m.
The figure represents a 75% decrease in profits on the previous year, when the wholesaler made £9.9m.
Read more: ‘Secure and discreet’: Well Pharmacy launches new Online Doctor service
Both companies deemed 2024 “a challenging year for the business”.
Well Pharmacy cited “inflationary pressures on global supply chains” that “increased the price of generic medication” and “increases in the national living wage” as challenges facing the company.
“Lack of funding”
The results come as Well Pharmacy last month announced that it had launched its new “Online Doctor” service.
And other chains continue to review their estates, with supermarkets Morrisons this week announcing that four of its pharmacies in England are set to close and Tesco last month revealing that it would close 10 of its pharmacies “later this year”.
Meanwhile, award-winning independent Wicker Pharmacy this month told C+D that it had moved out of one of its premises in the hope that it will save up to £60,000 a year due to a “lack of funding”.
Read more: Wicker Pharmacy forced to downsize amid ‘lack of funding’
And Boots’ parent company announced at the start of the month that it has finally been sold off in a long-anticipated deal with private equity firm Sycamore Partners.
Also in March, financial statements for the year ending December 31 2024 showed that Jhoots Chemist Limited faced tumbling funds ahead of a year of bumper debt.
Its accounts for 2024 revealed an almost £2m year-on-year dip in shareholder funds – as debts to creditors increased more than £2m.
