On Thursday, Walgreens Boots Alliance Inc reported a better-than-expected quarterly profit as higher UK retail sales and strength in its newly nascent consumer health business helped offset waning COVID vaccination demand.

Shares of Walgreens, one of the largest US pharmacies, surged nearly 7 per cent in premarket trading after the company also forecasted a higher full-year profit.

While overall pharmacy sales fell in the Q4 due to diminished COVID vaccination demand and lower prescription volumes, retail sales in the United Kingdom rose 15.2 per cent on the back of demand for over-the-counter health and wellness products.

Reportedly, the company also benefited from its Walgreens Health segment, which was launched last year as part of Walgreens’ efforts to diversify its business.

The unit provides pharmacy and primary care services in stores, at home or at a doctor’s office and via mobile app. It brought in sales of USD 622 million in the fourth quarter.

For 2023, Walgreens expects strong growth in its core business to offset waning demand for COVID-related products and services.

The company expects full-year profit from USD 4.45 to USD 4.65 per share, the top end of which came above analysts’ expectations of USD 4.53.