Superdrug: Sales and profit pass key milestones as Boots rival creates 400 jobs

Superdrug’s profit surged past £100m in 2023 as its sales broke the £1.5m barrier and it created more than 400 jobs, it has been revealed.

According to newly-filed results with Companies House, Superdrug’s pre-tax profit jumped from £77.7m to £111.6m in the 12 months while its revenue rose from £1.3bn to £1.5bn.

During the year the average number of people employed by Superdrug increased from 13,430 to 13,845.

Superdrug is owned by AS Watson Holdings which is incorporated in the Cayman Islands and is based in Hong Kong.

The brand is the second largest health and beauty retailer of its kind in the UK behind Boots.

In January 2024, Superdrug said it now held 40 per cent of the mass market share in cosmetics. 

‘Another tough year’

A statement signed off by the board said: “2023 was another tough year for the retail environment with sustained higher interest rates and persistently high inflation, squeezing consumers’ disposable income.

The ‘cost-of-living’ crisis was prevalent throughout the year meaning customers shopped around as they became more price sensitive.

“Total footfall across the UK decline[d] compared to 2022, as measured by the British Retail Consortium, although the health and beauty sector was one of the few market groups to see retail sales growth year on year.

“Government driven decisions on areas like National Minimum Wage has compounded wage inflation and continues to put pressure on operating margins for retailers.”

Superdrug opens new stores

Superdrug added: “The company continues to strive to be the best in everyday accessible beauty and health.

“2023 saw the opening of 14 new stores as the company continues to actively manage its store estate.

“This focus has extended to ongoing investment in the refurbishment and extension of existing sites/

“New stores continue to be primarily in retail parks as well as larger sites in locations such as Trafford Centre in Manchester, Barrhead in Glasgow and Brent Cross Shopping Centre in London.

How did rival Boots perform?

Boots reported a surge in its pre-tax profit for its latest financial year.

The Nottingham-headquartered business also saw an increase in its revenue in the 12 months to the end of August 2023, according to a set of recently-filed accounts with Companies House.

The business files its accounts across three firms: Boots UK, The Boots Company plc and Boots Management Services.

The results were filed before it was announced that its CEO would be stepping down after the high street pharmacy chain’s US parent company once again shelved plans to sell the business.