Superdrug profits drop in 'challenging times', but sales rise
Profits at Superdrug fell last year amid "challenging times", but revenues at the retailer rose on the back of new store openings and as the hot summer boosted sales.
In the year to 29 December 2018, pre-tax profit declined to £88.3m from £92.9m the year before. However, revenue ticked up 3.3% to £1.28bn as the company opened 23 new UK stores.
One of the hottest summers in recent years also provided a boost, with sales of bronzing products up 29%, while Superdrug's own suncare brand Solait took the number one sales spot over the season. Sales of vegan own brand products rose 25% over the year, while online sales were up 15%.
The beauty and cosmetics retailer's healthcare and wellbeing segment also grew, with the launch of specialist services such as Botox, which helped to underpin 84% growth in health services sales.
Peter Macnab, chief executive officer of A.S. Watson Health & Beauty UK, which owns Superdrug, said: "We are pleased with the company's performance in challenging times, and I’d like to thank every team member for their hard work and contribution to these results.
"Our strategy for 2019 is to ensure we are offering all our customers everyday accessible health and beauty, giving them the beauty and health services they need in a vibrant and friendly store environment."
During the year, Superdrug's market shares edged up to 9.8% from 9.2% in 2017.