Body Shop, the self-styled ethical retailer that is currently being taken over by French cosmetics giant L’Oreal, reported on Friday a 5% increase in annual pre-tax profits.
Profit before tax rose to £37,6-million (€54,8-million, $69,5-million) during its 2005/2006 financial year, compared with £35,7-million previously, the group said in an official earnings release.
That was achieved on the back of a 7% rise in retail sales to £772,0-million, while comparable store sales grew 4%.
The retailer said its performance would have been better had it not been for the failure of the US and British regions to achieve the targeted rate of growth during the Christmas period.
Body Shop, which has 2 133 stores worldwide in over 50 countries, added that robust sales were achieved in the Asia Pacific and Europe, Middle East and Africa regions.
L’Oreal, the world’s leading cosmetics company, launched a 300-pence-per-share takeover offer in last March to acquire Body Shop for £652,0-million (€940,0-million, $1,143-billion).
The French group had said on Thursday that it now owned 89,92% of Body Shop International.
The Body Shop was founded in 1976 by Anita Roddick, who rapidly expanded the business from modest beginnings with a determination to offer products that had not been tested on animals and used natural ingredients.
Body Shop was a leader in the so-called ethical business sector and developed a high-profile brand. – Sapa-AFP