Superdrug profits soar 71 per cent as budget beauty buys boost sales
Superdrug has reported a surge in profits in its full year results thanks to a jump in sales of its own-brand products on top of strong Christmas trading.
The medicine-to-beauty seller recorded pre-tax profits of £77.8m, up 71.1 per cent compared to the same period the previous year, as the retailer welcomed its first full year of trading post-pandemic.
Christmas shoppers splurging on perfume and the reopening of the high street also hiked sales to £1.4bn, up from £1.2bn in 2021.
Its own-brand label proved popular with customers, with Superdrug launching its own makeup brand.
During the year, Superdrug also increased capital expenditure on property and equipment to £24.9m, with the retailer opening 11 new stores, taking its portfolio to over 830 sites.
Superdrug also said its loyalty card scheme traded strongly during the year, as value deals became more important for shoppers.
Jonathan De Mello, founder and chief executive of retail consultant JDM Retail, told City A.M . Superdrug was bolstered by their value focus, which resonated with shoppers in light of the rising cost of living, along with an uptick in the sale of beauty products given the “demise of Debenhams and travails of the remaining department stores”.
“Loyalty schemes have resonated with shoppers given inflationary pressure on disposable income, and Superdrug’s Health and Beautycard has grown significantly in popularity – particularly their ‘Members Only’ pricing strategy,” he added.
“In contrast to Boots (who plan to close 300 stores this year), Superdrug opened 11 stores last year, and plan to open 25 this year – testament to their ongoing success.”