Superdrug profits soar by 41% led by cosmetics sales

By Sarah Parsons 4-Jul-2017

The A.S. Watson-owned cosmetics retailer saw pre-tax profits jump to £80.4m

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Superdrug has seen a strong rise in 2016 profits with the help of own brand beauty and Snapchat.

The A.S. Watson-owned retailer's full year pre-tax profits rose by 41% from £56.8m to £80.4m.

Cosmetics led the way in category performance, growing by 14% and beating competitors to achieve 30% market share for the first time.

Consumers' continued interest in celebrity beauty was identified as a growth-drive. As face powder Banana Powder —rumoured to have been used by Kim Kardashian— was named the best-selling product of 2016, with one sold per minute.

Superdrug also celebrated the success of its own brand offerings.

The firm boasted that a tub of its Vitamin E All Over Body Cream was sold every second and 16 own brand face masks were sold every minute.

Online also performed strongly, as sales increase by more than 60%.

Superdrug noted the performance of its success with Snapchat, revealing that five million consumers were reached with its sponsored Halloween Black Swan Snapchat filter.

Peter Macnab, CEO of A.S. Watson Health & Beauty UK, said: "We have had a strong year and are pleased with the company's performance.

“Looking to the future our strategy remains to offer customers everyday accessible health and beauty, giving them the beauty and health services they need, and an unbeatable selection of products at great prices, in a vibrant and friendly store environment."

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Superdrug currently employs 13,500 people and has 789 stores.