Beauty and personal care brands producer/supplier Brand Architekts Group part blamed its product rationalisation programme for a dip in annual sales but also praised the move for improving margins and reducing losses.

The British challenger brand said it has introduced “fewer, bigger, solution-led margin accretive bands”, down to eight “key focus brands”. The number of live skus across the group portfolio has been reduced by 19% to 248, while net inventory was cut by £1.4 million.  

This resulted in yearly sales falling 15% to £17 million, although Brand Architekts also cited “challenging trading conditions in the UK caused by a cost-of-living crisis and an unseasonably wet spring and early summer” for the dip.  

On the positive side, gross profit margins increased 1.5% to 41.2% as its underlying operating loss was cut to £0.4 million from a loss of £1.2 million a year ago. Also helping were “better targeted advertising & promotions, and the benefit of a full year of operational synergies”.

For good measure, its pre-tax loss also shrank to £1.4 million from £6.8 million.

The company can also look forward to further gains given its Super Facialist product sales grew 17%, fuelled by distribution gains, notably with Holland & Barrett.

Meanwhile, its Skinny Tan‘s Body Glow product has launched into Boots, Superdrug, Asda and Tesco, and “is now the fastest growing value SKU in the UK tanning category”. Also, washing & bathing range Dirty Works launched into 750 Watsons stores in nine countries, “with encouraging sell-out results”. 

It also said a FY25 brand refresh will focus on all year-round gifting and a sub range called Mood Magic.

Skincare brand The Solution also saw net sales jump 43% and is now being supported by The Solution Menopause range launched online in June and rolled out to Amazon in July. A Solution Haircare range is planned to launch in Q3 FY25.

Backed by a brand refresh, net sales of Root Perfect grew 14%, driven by strong UK demand for affordable hair colourants and a pan European distribution expansion across Normal stores.

Chief executive Quentin Higham said: “We expect to grow our brands through increased consumer awareness, investment in customer acquisition campaigns; product productivity; an extensive NPD pipeline planned for H2; the repositioning of Skinny Tan as Skin & Tan and international expansion.

“We will continue to focus on brand contribution and a further release of working capital tied up in harvest brands. We remain confident that the foundations we are building will enable us to return to profitability and achieve our medium and long-term goals.”