Superdrug has shrugged off rising wage costs and tax hikes to grow profits and expand its store estate, as it continues to build market share.
The health and beauty retailer added over 600 jobs in 2024, taking its total headcount from 13,845 to 14,479, according to newly filed accounts.
The growth included the opening of 13 new stores, building on the 400 roles created the year before.
The expansion came despite “government-driven decisions on areas like National Minimum Wage” which the business said have “compounded wage inflation and continue to put pressure on operating margins”.
It also flagged the increase in National Insurance contributions introduced under Chancellor Rachel Reeves’ recent fiscal policy, which it said had added a further “strain” to its cost base.
Superdrug, owned by Hong Kong-based AS Watson Group, reported a 9% rise in pre-tax profit to £136.8m for the year, up from £111.6m in 2023, as revenue climbed from £1.5bn to £1.6bn.
In a statement signed off by the board, the retailer acknowledged “another tough year for the retail sector”, with customers hit by inflation, higher interest rates, and the wider cost-of-living crisis.
“The continued cost-of-living crisis was prevalent throughout the year, meaning customers shopped around as they became more price sensitive,” it said, citing lower footfall across UK high streets.
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However, the company noted the health and beauty sector bucked wider trends, delivering year-on-year retail growth, with Superdrug benefiting from a broad offer spanning beauty and healthcare, both in-store and online.
Looking ahead, the retailer said the outlook remained “challenging and strongly competitive” in 2025, but added it was confident in its ability to maintain momentum.
“The directors are confident that the strong trading performance in 2024 will continue into 2025 and beyond,” the filing said.
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