Holland & Barrett International FY 2023 Results and Update on 2024 Trading

10 July 2024

• Holland & Barrett’s transformation strategy delivering strong results
• Firm foundations for sustainable growth
• Significant multi-year investment in technology and stores

Holland & Barrett, the UK’s leading health and wellness retailer, today announced financial results for the year ended 30 September 2023 and updates on trading in 2024.

• Strong growth momentum in Group financial performance, delivering 11% sales growth in 2023 and YTD in 2024 driven by significant investment of c. £70 million in our stores, technology and new product development including the opening and renovation of over 200 stores in the UK
• All geographic divisions in growth, with international sales (including China, Saudi Arabia and India) up 48% in 2024 Excellent progress against the company’s strategy focus areas of omnichannel growth, wellness solutions, and international expansion driving ongoing customer growth with transactions up 4.7% yoy
• Highest ever recorded scores for customer satisfaction, including checkout experience, colleague friendliness, and value for money supported on continued focus on colleague development, including the launch of a new higher level degree apprenticeship programme

Year ended 30 September 2023 financial highlights

• Group revenue increased by 11% to £806.1 million, versus £725.3 million FY22
• Gross profit increased by 7% to £475.7 million, versus £443.9 million FY22
• Distribution and operating costs decreased to £253.0 million, reflecting a cost-to-sales ratio improvement from 38.6% to 31.4%.
• Ended the year with £31.7 million in cash and net assets of £527.6 million, significantly up from £198.1 million in the previous year.
• EBITDA impacted by the implementation of new accounting policy change intended to improve cost management visibility as the group executes its strategy, as well as the investment in the growth strategy. EBITDA reduced to £81.9m, versus £105.6m FY22.

Recent FY24 (eight months to May 2024) trading highlights

• Strong momentum continues into 2024, with 11% sales growth and gross profit up 11% versus the same period last year, driven by greater volume of vitamin and supplements.
• Good growth across all core markets, with international sales (including China, Saudi Arabia and India) up 48%, UK sales up 11%, Ireland up 18%, Benelux up 11%.

Executive Chair Alex Gourlay, commented:

“There has been a clear shift in recent years in public perception of health and wellness, with focus shifting to preventive rather than reactive care, and people increasingly wanting to own and manage their individual health. To meet this shift, we are transforming the Holland & Barrett business: to deliver health and wellness that is easily accessible to customers in the UK and in our core international markets. We are moving to a clearly defined, mission-led approach to wellness, (ranging from gut and women’s health to joint care, cognitive function and weight management) supported by qualified and personalised advice to customers, and science-backed solutions that help people’s short, medium and long-term health and wellness needs.

“The business is now in a strong financial position and our strategic investments in the last year are showing clear benefits. In FY23 we invested over £4 million on the transformation of the store estate and will invest in at least one store a day in the next two years in a UK & Ireland store refresh and refurbishment program.

“Over 63,000 hours of colleague training was delivered in the last year, to help colleagues better demonstrate and communicate the benefits and features our products to customers. 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.

“We have made ambitious plans to invest further in technology, training and new product and service innovations to provide customers with qualified advice. We are focused on our vision to be the trusted partner for 100 million people globally, and excited for our next stage of growth.”