Superdrug released its annual results on Monday, reporting a double-digit revenue uplift and “soaring profits driven by strong retail store sales and volume growth” during 2023.

The UK-based health & beauty retail giant saw sales rising 11.8% to £1.528 billion and its market share also grew for the third consecutive year. It reached 10.6% having been 8.9% as recently as 2020. The company said volume sales rose 4.2%.

The robust results were helped, as mentioned, by “strong retail store performance, increased sales volume and continued own brand growth”.

As for profits, the company’s pre-tax earnings increased by 43% to £111.6 million. Superdrug didn’t give a net profit figure, but operating profit rose from £88.4 million to £121.9 million and the operating margin was up to 8% from 6.5% a year ago.

It all came as the business continued to invest in new upgraded stores in prime retail destinations during the financial period, with 14 openings in key locations, such as The Trafford Centre in Manchester, Brent Cross Shopping Centre and Braehead (its biggest in Scotland). 

Its larger stores have a more spacious layout as well as carrying a wider product offer and include Beauty Studios, premium fragrance counters and health services.

The modernisation of an existing 45 store over the course of the year also included new shop fronts; upgraded store Wi-Fi; new floor layouts; upgraded fascia and internal signage; improved flooring and ceiling tiles made from bio-soluble mineral wool, clay and starch; and energy efficient LED lighting. 

The company said own brand’s contribution to its volume sales growth was important. For instance, its Optimum Collagen Night Cream “flew off the shelves in the first half of the year after amazing reviews by beauty fans and twice sold out due to demand”.

And its Studio London own brand cosmetic range, also continued to grow. Meanwhile ‘exclusive to’ launches from brands including Biore SPF, Nyx X Barbie and fragrance by Billie Eilish “made up a high proportion of sales”.

Superdrug added that its Health & Beautycard customer loyalty programme “remains pivotal” and over 60% of total sales are made through members, “which highlights increasing levels of brand loyalty and competitive price”.