Superdrug's annual revenue rises despite COVID-19 challenges
Superdrug has released its financial results for the 53 weeks ending 1 January 2022, revealing a 5.1% increase in revenue to £1.168 billion, despite difficulty from the pandemic in Q1.
The company reported a "challenging period" with the COVID-19 pandemic, with revenue in the first quarter down 29% compared to the same period in 2020.
Superdrug said it recovered from the second quarter as lockdown restrictions were lifted. Although, the Omicron variant in the lead up to Christmas impacted the final month of the year.
Profit before tax increased 141.3% to £45.3 million, compared to £18.8 million in the year before, largely driven by the easing of COVID-19 restrictions and an increase in footfall on the high street. Superdrug reported 14 new store openings and 18 store closures in 2021, resulting in a trading estate of 796 stores.
Online sales increased 48.5%, compared to 2019 pre-pandemic levels. Superdrug also emphasised that own-brand products or exclusive product sales also increased compared to the previous year.
The brand's loyalty programme celebrated its tenth anniversary in 2021, as sales from members increased year-on-year. By the end of the financial period, the number of registered members totalled 15.9 million.
Peter Macnab, CEO of Superdrug, said: “Our annual reports show that 2021 was another year spent tackling the effects of COVID-19. The inflationary environment started by the COVID-19 pandemic has now been accelerated by the Ukraine crisis and we see significant pressure on retail’s operating margins, as well as reduced consumer confidence and disposable income.
"Although we expect the UK retail environment to remain challenging, the resilience of our online and healthcare channels, coupled with our clear future strategy to operate in both the offline and online channels, focus on our cost base and drive efficiencies that can be invested in improving our customer and colleague offering, leaves us well positioned to grow successfully in 2022 and beyond.”