Holland and Barrett reveals positive preliminary results

Holland and Barrett

Nuneaton-headquartered Holland & Barrett International Limited, the leading European health and wellness retailer, has announced its preliminary results for the year to 30 September 2018.

Group revenues  increased 7.1 per cent to £702.5 million. Group like-for-like sales increased 3.9 per cent ((38th consecutive quarter of like-for-like sales growth) and digital sales grew 32.2 per cent.

Newly-appointed Chairman, John Walden, said: “Holland & Barrett delivered a strong financial performance in 2018 with positive revenue, like for like sales and EBITDA growth, underpinned by significant growth in digital revenues. These results are particularly favourable against a backdrop of challenging and rapidly changing retail markets. As the newly appointed Chairman, I am looking forward to working with the talented Holland & Barrett team and developing an ambitious strategic plan – to build digital leadership and a global platformfor delivering the most trusted, ethical health and wellness products and services.”

Holland & Barrett now operates 1,077 stores in five countries including 830 stores and concessions in the UK and Ireland, and 247 stores internationally in the Netherlands, Belgium, and Sweden. Holland & Barrett also has over 400 franchised locations in 11 countries.

In 2018 Holland & Barrett’s aim, working with its new owners (L1 Retail, the retail investment arm of LetterOne,  purchased Holland & Barrett for £1.77 billion from The Nature’s Bounty Co. and The Carlyle Group in August 2017), has been to strengthen its operations, while developing its longer-term strategy to address a rapidly changing environment.

Peter Aldis, Chief Executive, said: “I am pleased by the strong performance in the business this year. We have just completed our 38thnconsecutive quarter of like-for-like sales growth, which is a milestone achievement we are very proud of. I am delighted that we have managed to attract a number of strong hires to the Executive Board over the last 12 months and am pleased by how well the team has come together in a short space of time. Looking forward under our new owners, I am confident that we are well positioned to drive transformation in the face of digital disruption. We expect that 2019 will also be a year of continued investment in the business to provide our customers with the most trusted and innovativerange of health and wellness solutions.”

International revenue now accounts for 20% of Holland & Barrett revenues. Over the last year, Holland & Barrett established a new organisational structure to focus efforts on maximising the long- term growth opportunity in international markets. It has also made significant strides in building out the local teams for its international markets as it continues to selectively expand its international footprint. In its owned markets, the company saw continued growth across each of its businesses in the Netherlands, Belgium and Sweden. Netherlands is the largest and most profitable of Holland &Barrett’s international markets, but also remains one of the most competitive. During the year Holland & Barrett acquired Halsa for Alla Sverige in Sweden, which provides a platform for further growth in the Scandinavian region.