Superdrug full year profits climb by 41%
Health and beauty retailer Superdrug has grown its annual profits by 41% to £80.4 million after sales were boosted by a face powder favoured by Kim Kardashian.
In the 53 weeks to 31 December 2016, revenue was up 10.4% to £1.2 billion. Like-for-like store sales increased by 7.8% as the retailer opened 23 new shops in the period.
Peter Macnab, chief executive of Superdrug’s parent company AS Watson Health & Beauty UK, said: “We have had a strong year and are pleased with the company’s performance.
“Looking to the future our strategy remains to offer customers everyday accessible health and beauty, giving them the beauty and health services they need, and an unbeatable selection of products at great prices, in a vibrant and friendly store environment.”
All the retailer’s main health and beauty categories contributed to the performance, led by cosmetics which grew by 14%.
Sales in healthcare and wellbeing rose by 12% as the category benefited from a range extension in diet and fitness as well as the continued growth of Online Doctor, a service which dispenses direct to customers’ doors or nearby stores.
Online sales climbed by over 60%.
The company said customers continued to be influenced by celebrities. One of its best-selling products in 2016 was banana powder, a face powder championed by Kim Kardashian.
During the period, Superdrug launched a new retail park format in locations such as Fosse Park, Leicester and Castlepoint, Bournemouth.
