The Body Shop's retailer sees profit jump, eCommerce a crucial contributor

InNature, the retailer of The Body Shop and Natura brands, has reported a profit after tax (PAT) of RM7.8 million on the back of RM43.7 million revenue in the fourth quarter ended 31 December 2021 (Q4 2021). The Group’s latest quarterly PAT represents a 0.6% improvement above Q4 2020 level. For the financial year ended 31 December 2021, the Group registered revenue of RM131.9 million and PAT of RM15.0 million.

Group MD Mina Cheah-Foong said its remote selling channels such as eCommerce, conversational commerce, and social selling continue to contribute a significant portion to the group revenue post-lock down. According to her, these channels made up 14.2% of the group revenue during the fourth quarter of last year. The Group added that its remote selling channels mitigated the effect of COVID-19 lockdown in 2021 with revenue contribution increasing by 2.6 times to 28.6%.

Meanwhile, InNature's businesses in Malaysia, Vietnam and Cambodia were profitable in Q4 2021. During the reporting quarter, the Group exited two underperforming locations in Malaysia and opened its 39th store in Vietnam, bringing the total store count to 118 as of 31 December 2021. For the 2021 financial year, group revenue declined 15.1% year-on-year, with businesses in Malaysia, Vietnam and Cambodia each recording lesser revenue by 14.8%, 17.7% and 2.2% respectively.

Cheah-Foong said the Group recorded a 2.6% year-on-year decline in Q4 2021 revenue as a result of the muted contribution from the company's overseas businesses. While Malaysia saw improving revenue by 2.4% amid economy reopening and year-end festivities, Vietnam remained impacted by COVID-19, with the country’s daily number of confirmed cases at the end of the reporting quarter continuing to swiftly trend upwards. For Cambodia, the lower revenue in Q4 2021 was mainly due to cautious consumer sentiment given the evolving pandemic situation. Despite the COVID-19 headwinds, the Group achieved PAT of RM15.0 million in FY2021, and has been profitable for every single quarter during the financial year.

"We expect an improving year-on-year performance in FY2022 as long as businesses are allowed to operate unfettered. We continue to invest in enhancing our systems and processes supporting both our physical and remote selling channels. Physical store locations remain a key contributor, hence we will ensure our brands are represented at all key locations," Cheah-Foong said. 

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