The Brand Architekts Group, a supplier of beauty and personal care products, has faced numerous challenges throughout the past year due to the ongoing impact of the Covid-19 pandemic. The company has had to navigate issues such as changing buying patterns, rising freight costs, labor inflation, and overall margin pressures. Despite these difficulties, the company has managed to make progress in various key areas.

Unfortunately, the positive developments were not sufficient to improve the company’s financial results. Revenue for the year decreased by 10% to £14.3 million, primarily due to the challenging external environment and reduced consumer confidence impacting demand. Furthermore, organic sales, excluding acquisitions, fell by 15% compared to the previous year. The underlying gross profit margin also experienced a decline, dropping to 33.5% from 36.9%, which can be attributed to cost pressures in the supply chain that could not be passed on to retailers.

Despite the financial setbacks, Brand Architekts Group did achieve several noteworthy accomplishments during the year. One notable achievement was the successful transition of the business strategy towards profitability and the Invest & Nurture brands. Additionally, the company managed to relaunch seven key brands during the autumn season, resulting in significant distribution gains for Root Perfect in multiple European stores and Morrisons in the UK. International sales were also boosted by Dirty Works distribution gains in Peru, Chile, and the US. Furthermore, Super Facialist experienced continued distribution gains in Tesco, Morrisons, and Look Fantastic outlets throughout the UK. Another significant milestone for the company was the successful acquisition of Innovaderma in May, which enabled the integration of its brands and team.

CEO Quentin Higham acknowledged the unprecedented challenges faced by the company and emphasized the importance of agility in meeting customer demands. The acquisition of Innovaderma was seen as a crucial step for the company, leading to an enhanced portfolio of core brands and cost synergies. Presently, Brand Architekts Group is focusing on executing its integration plan, expanding its international presence, and implementing strategies that prioritize profitability. The company is utilizing its online presence and retailer customer base to achieve these goals.

At the end of the year, despite the financial difficulties, Brand Architekts Group maintained a net cash position of £11.3 million.

Useful links:
Brand Architekts Group Official Website
Brand Architekts Group Brands