Tropic Skincare expects sales to fall this year after pandemic success
Tropic Skincare expects its sales to fall this year but the vegan skincare branded retailer is up against an “exceptional” trading numbers recorded during the pandemic.
Founded by former Apprentice contestant Susie Ma and backed by entrepreneur Lord Sugar, the company is expecting sales to be £20 million short of the record £90.6 million recorded in 2021.
Muhammad Bilal, the group’s financial controller, told The Times newspaper, the dip was due mainly to its 20,000 self-employed salespeople organising fewer ‘pamper’ parties. Many had boosted their incomes during the lockdowns by earning commissions from Tropic as a sideline when there was less to do.
These 'brand ambassadors' generate more than 90% of the company’s revenue and earn a minimum 25% commission on every product they sell, he noted.
Accounts filed last week showed Tropic’s 2021 operating profits (EBIT) were down 23% to £12.2 million after the business also suffered higher raw material and other operating costs.
Ma, its chief executive, founded the company in 2003, and appeared on The Apprentice TV show in 2011. Lord Sugar subsequently invested £200,000 in her skincare brand in return for a 50% stake. In 2020, Ma and Sugar shared a £10 million dividend from the business, although no dividend was paid last year.
Last year, the company moved into a new £4 million, 48,000 sq ft headquarters in Croydon, London, to accommodate its growing workforce.
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