Tough times for Brand Architekts in "challenging" transition period

By

Nigel TAYLOR

Published
Jul 21, 2022

Deep in transition mode, Brand Architekts ​Group has suffered an untimely dip in sales and earnings, the challenger British beauty business admitted Thursday.

In a trading update for the 52 weeks to 30 June, it said group sales are expected to have fallen 11% to around £14.2 million, from £15.9 million a year ago, as the group “navigated the challenging external environment and the impact of reduced consumer confidence on demand”. 

Excluding the contribution from newly-acquired Innovaderma, which delivered £0.8 million of sales in June, organic sales also dipped 16% on the prior year. 

“Given the challenging trading environment the group generated an operating loss in the second half in line with that reported in the first half but was also impacted by lower revenue in the period”.

However, the group noted it retains a net cash position of £11.3 million at year end.
 
Despite its fiscal woes, Brand Architekts said it successfully relaunched seven brands in September and October 2021 (Dr Salts; Root Perfect; Argan +; SenSpa; Kind Natured; Happy Naturals; Beautopia) and was “pleased” with a resilient performance from its three largest brands, Skinny Tan, Super Facialist and Dirty Works.
 
Despite difficult market conditions and inflation headwinds, it said its management team is now focused on “realising both the strategic and financial benefits of the newly transformed group”. 

It also said the immediate priorities that lie ahead are “implementing an effective integration plan, increasing international expansion and delivering both companies' strategies through the experiences and success of its online presence as well as the group's retailer customer base”.