Holland and Barrett losses widen despite surge in revenues
The group’s ‘strong growth momentum’ was driven by an investment of approximately £70m in its stores, technology and new product development
Holland and Barrett has reported that pre-tax losses widened from £59.6m to £65.3m following a rise in administrative expenses, despite seeing its revenues increase 11% to £806.1m during the year ended 30 September.
Gross profits also rose by 7% to £475.7m, while distribution and operation costs decreased to £253m that showed a cost-to-sale ratio improvement from 38.6% to 31.4%.
The group’s “strong growth momentum” comes as it delivered 11% sales growth in 2023 and year-to-date in 2024, which it said was driven by an investment of approximately £70m in its stores, technology and new product development.
Meanwhile, all H&B geographic divisions – including China, Saudi Arabia and India – reported growing sales that rose 48% in 2024.
Administrative costs also impacted EBITDA, having been reduced to £81.9m from £105.6m in FY22, after the implementation of a new accounting policy change that was intended to improve cost management visibility along with its investment in its growth strategy.
Nonetheless, Holland and Barrett ended the year with £31.7m in cash and net assets of £527.6m, spelling a “significant” rise from £198.1m in the previous year.
Alex Gourlay, executive chair of Holland and Barrett, said: “The business is now in a strong financial position and our strategic investments in the last year are showing clear benefits.
“We have also made excellent progress with our product innovation, launching 100 new sports transformation lines, the rollout of medicines and healthcare ranges and ranges focused on functional mushrooms, collagen, and other superfoods.”
He added: “We are focused on our vision to be the trusted partner for 100 million people globally, and excited for our next stage of growth.”
So far in 2024, H&B has reported a continuation of its strong momentum, with sales growth and gross profits rising 11% respectively due to greater consumer demand for vitamins and supplements.
