Superdrug has seen its pre-tax profits increase by some 23%, rising from £111.6 million in 2023 to £136.8m in 2024, company accounts for the year ending December 28 2024 have revealed.
Published on Companies House this week (July 1), the document showed that the company’s sales revenue rose by 7%, jumping from £1,528m in the year ending December 30 2023 to £1,634.5m at the end of December.
Read more: Superdrug reveals supercharged £112m profits in 2023 as it opens new branches
Directors said that the business had “a strong financial period...despite UK retail footfall being subdued all year”, adding that “the company showed resilience to grow sales in its retail stores and online channels”.
“Total sales continue to be supported by the opening of new stores as well as the ongoing refurbishment programme of existing stores”, the document said.
And it noted that the “continued pressure on consumers’ disposable income, coupled with fluctuating consumer confidence, means that Superdrug’s promotion-led offering and everyday low prices on own-brand products continues to be attractive”.
External challenges
“External challenges such as inflation and rising living and employment costs continue to have a notable impact on the UK,” the company said, adding that “directors expect that the UK retail environment will remain challenging and strongly competitive in 2025”.
It also noted that the “upwards pressure on operating costs as a result of legislative changes, especially the increase in national insurance contributions, continue to put a strain on operating margins”.
Read more: Superdrug launches ‘free walk-in’ teen skincare service
“However, the company’s strategy is designed to counter these headwinds,” directors said, adding that the “continued growth in sales and market share... demonstrates the ongoing relevance of its…broad beauty and healthcare product offering both in-store and online”.
According to Superdrug’s annual report, it “saw the opening of 13 new stores” last year.
And its “average monthly number” of employees rose by 5%, from 13,845 in 2023 to 14,479 last year.
Read more: Superdrug set to open another 25 new stores this year
The filing, however, did reveal that the company’s distribution centre in Pontefract, West Yorkshire, will “close on expiry of the lease at the end of 2025” following a “consultation period” on the matter.
But it stressed that “management is confident that the operations from this distribution centre can be absorbed into the existing operational network”.
Meanwhile, Superdrug’s parent company AS Watson also published its annual report for the same period this week (July 1), revealing that pre-tax profits dropped by almost a quarter (24%).
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Profits decreased from £125.3m in 2023 to £94.7m at the end of last year, the company said, adding that this includes “dividend income” of £45m from Superdrug.
And the filing added that AS Watson settled a loan of £30m that it had given to Superdrug in 2023.
It comes as Superdrug has announced the launch of a “dedicated teen skincare service” in its pharmacies, providing “free walk-in support” for those going through puberty.
And in March, it revealed plans to open 25 new stores this year – although it remained unclear how many would include pharmacies.
