- Pre-tax profit jumped 41%
- Like-for-like sales up 7.8%
- Revenue increased 10.4%
Superdrug reported a leap in preliminary pre-tax profits and like-for-like sales as the retailer’s store expansion and cosmetics offer bolstered growth.
The health and beauty retailer posted a 41% hike in pre-tax profit to £80.4m for the 53 weeks to December 31.
Revenue during the period increased 10.4% to £1.2bn and like-for-likes jumped 7.8%, although the beauty’s specialist’s comparatives were boosted by the inclusion of a 53rd week in its results.
The extra week was included in Superdrug’s preliminary results in order to maintain alignment of its period end and accounting reference date and will revert to a 52 week period in the following financial year.
The retailer’s overall sales were driven by its cosmetics division, which posted a 14% sales increase and won 30% market share.
Sales of health and wellbeing products also went up 12%, bolstered by an extended range of diet and fitness items, whilst online sales soared 60%.
Superdrug opened 23 new stores during the period and rolled out its Wellbeing store format to a further six locations, taking its overall bricks-and-mortar estate to 789 outlets.
The retailer also ploughed £33m of investment into new bricks-and-mortar openings, store refurbishments and developing its southern regional distribution centre.
Peter Macnab, chief executive of Superdrug parent company A.S. Watson’s UK health and beauty division said: “We have had a strong year and are pleased with the company’s performance.
“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.”