Holland & Barrett has reported plummeting profits despite seeing its ninth consecutive year of sales growth.
The health retailer saw like-for-like sales rise 4.5 per cent, including an online sales rise of 23.6 per cent in the year to September 30, 2017.
Revenues also jumped 7.1 per cent over the year to £656 million.
Although sales continued their upward trajectory, Holland & Barrett reported a sales drop of 37 per cent to £72.5 million.
It cited increased capital expenditure of £47 million to the fall in profits, as it continues to drive store expansion and expand its portfolio “where strategically appropriate”.
Holland & Barrett is also driving development of its in-store and online capabilities in order to set itself apart from its rivals.
“The health store market is highly fragmented globally,” the retailer said.
“There are estimated to be more than 1,000 independent health stores operating in the UK alone.
“Furthermore, there is increasing competition from the national supermarket chains and other retailers, such as chemists, drugstores and internet traders.”