Superdrug FY profits jump 22.6% amid focus on value items

Superdrug has seen its full-year pre-tax profits jump by 22.6% to £136.8m, as store openings, refurbishments and a focus on value helped offset weaker UK footfall and pressure on consumer spending. 

It comes as the health and beauty retailer saw its sales rise by 7% during the year to 28 December 2024, down from a rise of 11.8% the year before. Superdrug’s operating margin, however, improved from 8% to 8.8%. 

According to the group’s filing at Companies House, its resilience reflected growth across both its stores and online channels, supported by 13 new store openings and ongoing refurbishment of existing sites. 

Superdrug described its “promotion-led offering” and low own-brand prices as continuing to appeal to increasingly price-sensitive customers.

During the period, net assets rose to £439.8m from £378.8m a year earlier, while total assets increased to £1.1bn. Total liabilities stood at £736.8m, with cash at the end of the period standing at £200.6m, up from £161.5m.

The improved cash position allowed the company to increase stock levels to improve availability and to repay a £30m intercompany loan from parent AS Watson (Health and Beauty UK) Limited.

Superdrug said the retail environment remained challenging, with high interest rates, wage inflation and the lingering impact of higher prices all contributing to a squeeze on disposable incomes. UK high street footfall fell in 2024, according to British Retail Consortium (BRC) data, although health and beauty was one of the few sectors to record sales growth.

The company said it continued to invest in its store estate, reopening its largest store at Stratford Westfield after an extension to 9,900 sq ft and refurbishing other sites to create a more modern shopping environment.