Superdrug hails 'momentum' as full-year profits jump

The health and beauty retailer’s pre-tax profit increased 16% to £92.9m during the 52 weeks to December 30, 2017, according to documents filed at Companies House.

Revenues advanced 2.3% to £1.24bn, driven by a 2.5% uplift in like-for-like sales and the opening of 22 new stores across the UK.

Superdrug, which is owned by the AS Watson Group, said “all categories” contributed to its results, but highlighted the growth in its market share of the cosmetics market to 32%.

It said the introduction of new brands including the social-media-inspired Revolution gained traction with shoppers, while its sponsorship of hit ITV show Love Island boosted sales in bronzing, make-up and hair styling.

Superdrug said sales climbed 8% in healthcare and wellbeing, driven partly by the growth of its Online Doctor business, which delivers products such as vitamins to customers’ homes.

It also launched an electronics NHS prescription service in November, which delivers prescriptions to customers free of charge.

The retailer’s online sales through Superdrug.com jumped 30%, buoyed by new website functionality, including a new mobile phone app and increased fulfilment options.

Superdrug revealed last month that it had launched its own SIM-only mobile phone network, Superdrug Mobile, for Health & Beautycard members as it bids to drive up membership numbers.

The business said the loyalty scheme increased in size by 25% last year, with almost 12 million registered customers at the year end.

Peter Macnab, the boss of AS Watson’s health and beauty business in the UK, said: “We are pleased with the company’s performance, and the continued recognition of our colleagues’ customer service efforts. I’d like to thank every team member for their hard work and contribution to these results.

“This year we will continue to focus on offering customers the service and products they want, including our new Superdrug Mobile. Our strategy this year is to ensure we are offering customers everyday accessible health and beauty, giving them the beauty and health services they need in a vibrant and friendly store environment.”