Superdrug profits up 41 per cent in 2016
A strong cosmetics category, new store openings and like for like sales growth in existing stores helped Superdrug achieve a 41 per cent profit increase in 2016, the company says.
Accounts filed at Companies House for the 53 weeks ended 31 December 2016 show the pharmacy chain took in Â£80.4 million before tax over this period, compared to Â£56.8 million reported in 2015.Â
At Â£1,214 million, total revenue was up 10.4 per cent on 2015. The company says this was driven by LFL sales growth of 7.8 per cent and 23 store openings in 2016. Revenue also was also helped by the inclusion of a 53rd week in the 2016 financial period; this will revert to a standard 52-week financial period in 2017.Â
The company says that all health and beauty categories contributed to the surge in revenue, led by cosmetics which grew 14 per cent and achieved a 30 per cent market share for the first time. Sales via the Superdrug website increased by more than 60 per cent in this period, influenced by improvements in functionality and in delivery services, the company says.
The results are from trading prior to the community pharmacy cuts in England took effect.
Peter McNab, CEO of A.S. Watson Health & Beauty UK, which owns Superdrug, said: â€œWe have had a strong year and are pleased with the companyâ€™s performance.
â€œLooking 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."
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