Boots has reported a lower than expected pre-tax profit for the year to August 31, 2017, according to a report published by Insider Media.

The UK-based drugstore chain, which is part of Walgreens Boots Alliance, saw profit fall to £498 million in fiscal 2017 compared to £523 million recorded the year before. Revenue was also down, dropping to £6.83 billion from £6.87 billion in 2016.

“The company’s revenue is subject to the influence of seasonality, with the second fiscal quarter typically the strongest as a result of the winter holiday period,” reads a statement issued by the company, per Insider Media.

“This seasonality affects the company’s proportion of revenue between retail and pharmacy during certain months in the fiscal year. The company’s retail revenue, gross profit and gross margin are impacted by, among other things, the highly competitive nature of the costs of the health and beauty category.

“In particular, our own and our competitors’ pricing actions, promotional offers and events and our customer’s desire for value and convenience.”