Superdrug profits down 5%

1831
// Superdrug sees revenues rise 3.3% in annual report
// Profit before tax down 5% to £88.3 million
// The beauty retailer added 23 new stores to its portfolio to end of 2018

Last summer’s heatwave meant a rise in sales for Superdrug, but the beauty retailer still struggled under difficult trading on the high street.

Revenue rose 3.3 per cent in the 52 weeks to December 29, partly attributed to the opening of 23 new Superdrug stores during that time.

This brings its total to 816 stores, with sales through its website up 15 per cent. 

Profit before tax fell 5 per cent to £88.3 million from £93 million.

Superdrug has been quick to expand into wider beauty and cosmetic treatments to tempt customers in store.

The retailer’s own-brand vegan products helped the rise in revenue, with sales up 25 per cent as the popularity for conscious consumption grows.

The brand also became the biggest operator of nail bars and brow bars, with a total of 100 and 330 respectively, and launched its controversial Botox and dermal filler offers at its flagship London store. 

Superdrug is owned by AS Watson Group, part of the Hong Kong conglomerate CK Hutchison Holdings.

“We are pleased with the company’s performance in challenging times, and I’d like to thank every team member for their hard work and contribution to these results,” said AS Watson Health & Beauty UK chief executive Peter Macnab.

“Our strategy for 2019 is to ensure we are offering all our customers everyday accessible health and beauty, giving them the beauty and health services they need in a vibrant and friendly store environment,” Macnab added.

Click here to sign up to Retail Gazette‘s free daily email newsletter