Superdrug sees 41% profit jump

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superdrug profits

Superdrug has seen full year preliminary pre-tax profits and sales jump as the health and beauty retailer cashes in on store expansion.

In the 53 weeks to December 31, Superdrug saw a 41 per cent boost in pre-tax profits to £80.4 million.

Like-for-likes were also up 7.8 per cent and revenues jumped 10.4 per cent to £1.2 billion.

The retailer included an extra week on the end of its results to maintain alignment of its period end, ans said this may have boosted comparative figures for the year.

Key performers driving the growth through what has been a tumultuous year for many of Superdrug’s high street neighbors was its cosmetics section, seeing a 14 per cent rise in sales during the year and accounting for 30 per cent of the market share.

This was propped up by a 60 per cent boost in online sales, and a 12 per cent rise in health and wellbeing products.

READ MORE: Superdrug owner eyes Holland & Barrett takeover

These figures come amid solid expansion across the UK for the retailer, opening 23 new stores and pumping £33 million into store expansion and refurbishments, as well as development of its regional distribution centre.

“We have had a strong year and are pleased with the company’s performance,” said Peter Macnab, the chief executive of the UK health and beauty division of Superdrug parent company A.S. Watson.

“Looking to the future our strategy remains to offer customers everyday accessible health and beauty, giving them the beauty and health services they need, and an unbeatable selection of products at great prices, in a vibrant and friendly store environment.”

A.S. Watson was recently thought to be considering a bid for health foods giant Holland & Barrett before it was bought out by L1 investments.

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