The Body Shop appears to be bouncing back from its spectacular implosion earlier this year with news of profitability in the UK business, an acquisition of the Canadian business and expansion plans in the Middle East.

First, that profitability bounce-back. The ethical beauty retailer saw a £2 million profit in its first three months following its purchase out of administration in September.

The company was placed into administration by its new owner Aurelius in February, even though the German private equity firm had only bought it the previous November. What followed was a break-up of the giant global business, as well as global store closures including 85 location being shuttered in the UK.

Jatania’s Aurea Group acquired the business and now operates 113 UK stores and employs 1,200+ people across its stores and HQ.

In a note seen by The Guardian, new CEO Charles Denton (who formerly ran Molton Brown) said the chain had ended last week 17% ahead above internal sales forecasts.

He said that — to echo the tagline of its current ad campaign — the company is now “back for good” and that sales in its first 100 days under new ownership added up to £28 million.

The return to profitability contrasts with the last set of accounts available (2022) in which it made a £71 million loss.

The once-giant company has shrunk from 3,000 shops worldwide. Although it still operates in 83 companies via more than 1,300 stores, most of them franchised.

Meanwhile, a BNN Bloomberg report has also said that Serruya Private Equity has agreed to buy The Body Shop Canada for an undisclosed amount. 

Serruya was reportedly one of four bidders for the Canadian branch and it too will enter into a franchise agreement with Aurea prior to taking ownership. The news hasn’t been confirmed by either party.

But Jatania has been talking about some plans for the company and in an interview with Gulf Business stressed the importance of the Middle East to the brand.

He also spoke more widely about the overall business and said “transformation is key… while The Body Shop has a fantastic heritage, we need to evolve it to meet today’s consumer demands. Our focus is on product innovation, keeping the consumer at the heart of everything we do. This includes embracing global sustainability practices, using global ingredients, and rapidly bringing new products to market.

“We want The Body Shop to be more nimble and consumer-centric, able to respond quickly to the ever-changing beauty landscape while staying true to its core ethical values”.

As for the Middle East, he said it’s “crucial to our growth strategy. We already have a presence in nine markets in the region, including the UAE and Saudi Arabia, which are growing rapidly. The region has a young, increasingly conscious population, and consumers here are more aware of sustainability and ethical brands. These trends align perfectly with The Body Shop’s values. It’s an exciting and fertile market”.

He’s focusing on “adapting to local market needs, particularly when it comes to fragrance and skincare. Fragrance has always been a key part of The Body Shop’s heritage, and in the Middle East, it plays an even more significant role.

“We’re also investing in skincare innovation to meet the evolving demands of multi-generational families. From youth-focused products to anti-ageing solutions, we aim to serve both younger and older consumers, male and female”.

And he added that “there’s immense potential for local cultural elements to inspire global products, and we’re passionate about making that happen”.