Health and beauty retailer Holland & Barrett has posted a pretax profit surge of 19.4% to £60m, a day after its sister company Julian Graves collapsed into administration.
Owned by NBTY Europe, Holland & Barrett delivered sales up 11.7% to £307.8m posting a “satisfactory” performance for the year to September 30. Store growth, new products and effective marketing had also boosted sales.
Deloitte was appointed administrator to confectionary retailer Julian Graves yesterday. NBTY Europe said it had suffered from a “perfect storm” of reduced consumer spending and “rocketing” commodity prices.
It is understood that back office systems are integrated across NBTY Europe’s companies which also includes GNC. However, it is thought Holland & Barrett remains unaffected by the administration of Julian Graves.
NBTY Europe chief executive Peter Aldis told Retail Week Holland & Barrett had ensured it kept “prudent management of the cost base and product margins”.
Since the year end, Aldis - who declined to comment on the collapse of Julian Graves - said Holland & Barrett had continued to trade at a “similar level”.
“Trading continues to be extremely difficult,” he added. “There are things that have had an immediate impact on the performance such as the weather, whether it be torrential rain or heat waves.”
He added that nervousness around the struggling euro had hit consumer confidence, also affecting trade.
Aldis added that its staff training programme means it gives the retailer a unique selling point through the knowledge of its workers.
Going forward Holland & Barrett plans to ramp up its online offer but he said stores were still important.
“We want to be multichannel and a network of stores is a strength to multichannel with choices such as click and collect in store. What the customer wants is what the business needs to embrace,” Aldis added.