Superdrug profits rise as sales grow across stores and online

The high street chain saw a 7% increase in sales in the 52 weeks to December 28 to £1.63bn, up from £1.53bn.

Profit before tax rose 22.6% in the year from £111.6m to £136.8m, which Superdrug said was “primarily attributable” to strong sales growth.

It added that its strong performance occurred despite lower footfall during the year, and that the customer is still feeling pressure on disposable income as the retailer’s promotion led offering and low prices on own brand products “continues to be attractive”.

In 2024, Superdrug opened 13 new stores and continues to refurbish and extend existing ones. The online experience has also seen improvements to its user experience, a new version of the app, and 30-minute click-and-collect services.

It also increased its employees from 13,845 to 14,479 – an increase of over 600.

In a statement signed off by the board, Superdrug said: “The directors expect that the UK retail environment will remain challenging and strongly competitive in 2025.

“Consumer sentiment remains subdued and with the household savings ratio the highest for a number of years retailers are having to work hard to capture customers’ spend.

“At the same time upwards pressure on operating costs as a result of legislative changes, especially the increase in national insurance contributions, continue to put a strain on operating margins.

“However, the company’s strategy is designed to counter these headwinds.

“The continued growth in sales and market share, which the company has delivered over the past few years, demonstrates the ongoing relevance of its customer offer across its broad beauty and healthcare product offering, both in-store and online.

“The directors are confident that the strong trading performance in 2024 will continue into 2025 and beyond.”