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Superdrug hails a strong year as profits soar

8th Jul 24 10:44 am

SUPERDRUG HAILS STRONG FULL YEAR FINANCIALS AS RESULTS SHINE

Leading health and beauty retailer publishes double digit growth, with soaring profits driven by strong retail store sales and volume growth.

Leading health and beauty retailer, Superdrug, has reported strong financial results for the year 2023, with sales increasing by 11.8% to £1,528 million (vs £1,367 million in 2022). Market share also grew for the third consecutive year rising to 10.6%, versus the 8.9% market share held in 2020. The positive figures have been driven by strong retail store performance, increased sales volume and continued Own Brand growth.

The results also show that pre-tax profit increased by 43% to £111.6 million – over last period’s £77.8 million – as more shoppers continue to discover high quality, trending health and beauty products at an affordable price.

Superdrug’s ongoing investment into best-in-class stores in prime retail destinations contributed to robust sales during the financial period, with 14 new stores opening in key locations such as The Trafford Centre in Manchester, Brent Cross Shopping Centre and Braehead – Superdrug’s largest store in Scotland. The larger stores include spacious aisles where Superdrug customers can enjoy browsing the latest trending cosmetics and skincare products, Beauty Studios offering beauty services, premium fragrance counters and health services.

In addition to the new store locations, Superdrug has enhanced customers’ experience by modernising and refitting 45 existing stores over the course of the year.  Updates included new shop fronts, upgraded store Wi-Fi, new floor layouts, upgraded fascia and internal signage, improved flooring and ceiling tiles made from bio-soluble mineral wool, clay and starch and energy efficient LED lighting.

Volume sales for total revenue increased by 4.2 % year-on-year owing to Superdrug’s strategy to list up to the minute ‘Made by’ Superdrug products, providing the company with a significant point of difference and a means to showcase its innovation in the health and beauty market.

Superdrug’s Optimum Collagen Night Cream flew off the shelves in the first half of the year after amazing reviews by beauty fans and twice sold out due to demand. The retailer’s own brand cosmetic range, Studio London, also continued to grow, and in 2023 a campaign called ‘Studio Stars’ was launched with the aim to discover 10 makeup artists (MUAs) and give them industry leading experience.

‘Exclusive to’ launches from brands including Biore SPF, Nyx X Barbie and fragrance by Billie Eilish made up a high proportion of sales, as customers snapped up the latest trending beauty products.

Superdrug’s CEO Peter Macnab said, “Our vision is to be the UK’s leading accessible health & beauty retailer with high quality, affordable products at the heart of everything we do. Our financial results demonstrate the trust that customers are continually putting in us and I would like to thank our colleagues for their ongoing hard work and commitment and for living and breathing our vision every day.

“Over the last year, we’ve continued to invest into our store estate to provide customers with best-in class shopping experiences. The strong store sales growth gives us the confidence that our strategy is working, and new stores are being welcomed by customers and the local community.

“As inflation continued to put pressure on households, at Superdrug we’ve invested heavily to keep our prices competitive and help families keep costs down.

“In May 2023, we reduced prices by 20%, equivalent to VAT across the Solait sun protection range to help make products more affordable for families and rolled out additional members only pricing across own brand ranges. The Superdrug Mobile tariff was also frozen for another year following an investment in a new platform and 5G services to provide our customers with more value for money.”

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