Superdrug to accelerate multichannel offer as full-year profits rise

• Pre-tax profits up 31.3% to £38m
• Group sales rise 4.8% to £1.06bn
• Operating profits up 47.8% to £38.2m

The retailer, part of the AS Watson group, reported a 31% jump in full-year pre-tax profits in the 52 weeks to the end of December. Group sales rose by 4.8% to £1.06bn.

Sales in health rose 12.2% helped by a wider range of products, while beauty revenues climbed 4.6%.

Turning to its multichannel offer, Superdrug noted that it is “becoming increasingly important” in health and beauty. The retailer said it will boost its offer by “extending products, delivery options and in-store accessibility to make it easier for customers to access products and advice”.

Rival Boots last month revealed plans to up its multichannel offer, as part of a wider restructuring including cutting 700 non-store jobs.

In its results, filed with Companies House this week, Superdrug warned that “continued pressure on costs” meant it would mean “further operational efficiency programs” would need to be delivered.

Superdrug said it was “pleased” with the overall sales performance during an “increasingly competitive and promotion-led trading environment”.

The retailer updated 200 stores in the year. It also launched two new store formats – ‘Beauty Studio’ and ‘Welbeing’ – which it will continue to roll out in 2015.

Looking ahead, Superdrug said: “The directors expect the overall trading environment to remain challenging with a relatively slow recovery in the UK.”