Superdrug publishes positive full year financial results

Leading health and beauty retailer Superdrug, has reported strong financial results for the full year 2022 with sales surging by 17 percent to £1,367 million (vs £1,168 million in 2021), thanks to improved store footfall in city centres, successful Own Brand product launches and a strong Christmas period.^[1]

The results also show that pre-tax profit increased by 71.7 percent to £77.8 million – over last period’s £45.3 million – with online trading volumes and continuing to track significantly ahead of pre-pandemic levels.

Superdrug.com was re-platformed over the year as a central pillar to Superdrug’s “O+O” strategy (offline plus online), providing seamless accessibility and experience, regardless of how customers choose to start or conclude their shopping. The company also invested in 12 new stores, resulting in a trading estate of 789 stores in the UK and Ireland at the financial period end, and has recently announced plans to invest in 25 new stores in 2023, expanding its bricks-and-mortar retail footprint.

Superdrug’s CEO Peter Macnab commented: “Our annual report shows the real resilience and strength of the Superdrug business, despite ongoing inflation and upwards pressure on business costs. I would like to thank our 13,430 colleagues for their ongoing energy and passion, which has ensured Superdrug can continue to bring the best in accessible health and beauty to as many customers as possible.

Throughout 2022 high food, energy and domestic costs continued to put severe pressure on household incomes. At Superdrug we remained committed to supporting customers through the Cost-of-Living crisis, working with Jack Monroe and becoming the first health & beauty retailer to introduce price freezes on essential products, ensuring we brought best-in-class health and beauty at competitive prices, the success of which we see reflected in the growth of our Own Brand offering and the great take up of Members Only Pricing.”

He added: “Christmas 2022 was a particularly positive trading period for Superdrug and we have certainly carried this momentum into 2023, with customer footfall continuing to increase and all of our categories performing well, particularly Cosmetics which had a turbulent few years throughout the pandemic.”

Superdrug’s online healthcare channels, both the Online Doctor and the eNHS services, continued to show strong growth with the launch of five new services and expansion of seven others. Three new Health Clinics were also opened bringing the total number to 85, with 18 new blood test products added to the existing range of services.

The proportion of Company sales made up from Own Brand products and products exclusive to Superdrug grew once again in 2022, providing the company with a significant point of difference and a means to showcase its innovation in the health and beauty market. November 2022 saw the launch of Superdrug’s new and only makeup range, Studio London, a 137-piece collection
that offers everything under £9 and which has twice sold out its best-selling product, U Matte-R Setting Mist Matte. In late 2021 the retailer also relaunched its Own Brand skincare range, B. Skin, which was blind tested against and scored better than expensive leading brand equivalents.

Superdrug’s Health & Beautycard customer loyalty programme remains pivotal to the retailer’s engagement with its customers as members continue to delight in discovering the latest trending, high performance products, at affordable prices. Sales from members significantly increased year on year, supported by the introduction of ‘Members Only’ prices in August 2022; by the financial period end the number of registered members stood at 15.7 million.

Superdrug continues to enhance its O+O offering, bringing shoppers a market-leading, integrated experience. Superdrug Marketplace launched in November 2022 and listed 7,000 of the most exciting and innovative new products for customers to discover in the run up to Christmas. Whilst rapid delivery services like Store to Door allowed customers to order to home from local stores and Store Insider connected Online customers to store advisors, ensuring Superdrug offers market leading convenience, with the very best customer service whatever the touchpoint.

^[1]Annual statement for the 52 weeks ended 31^st December 2022.