UK budget cosmetics and health retailer Superdrug has reported a 141.3% leap in profits before tax to £45.3m in its full-year 2022 results.
The profit boost was largely driven by an ease in Covid-19 pandemic restrictions, as well as higher footfall into its brick-and-mortar stores throughout the year.
The AS Watson-brand also said sales have been supported by a rise in customers purchasing exclusive Superdrug products.
The combined result of brand interest and in-store sales led to revenues jumping by 5.1% to £1.168bn, compared with £1.1bn in 2020.
Trading on its e-commerce channels, additionally, experienced a 50% increase compared with pre-pandemic levels.
Despite the strong results, Superdrug is anticipating further pressure on retailers due to the war in Ukraine.
Superdrug’s CEO, Peter Macnab, said that the inflationary environment started by the Covid-19 pandemic has now been “accelerated by the Ukraine crisis”.
Russia’s invasion of Ukraine has resulted in weakend global economic growth and a hike in inflation.
Global growth is set to decelerate sharply to around 3% this year and 2.8% in 2023, according to OECD, which monitors economic progress and world trade.
The brand, as a result, is anticipating further pressure on the retail industry’s operating margins, as well as reduced consumer confidence and disposable income. “We are working hard to support our customers through these challenging times and doing what we can to minimise the impact of price rises, as we stand firm in our mission to bring the very best of accessible health and beauty to the high street,” added Macnab.
