Tropic sees EBITDA fall despite rise in annual sales
Skincare brand Tropic has released its financial results for the year ending 31 December 2021, revealing a 19.6% increase in sales to £90.6 million.
Despite seeing sales growth, Tropic's EBITDA was down 23% to £12.2 million. The company attributed its sales increase to its growing ambassadors program, which it describes as having a "strong" retention rate.
Tropic emphasised that the company invested heavily in equipment and its employees during the year. It also maintained its prices during COVID-19, despite an increase in product costs and large increases in air and sea freight.
The number of staff employed by the company increased by 195 to 444 during the year.
Tropic made charitable donations of £902,075, compared to £836,415 in 2020. 2021's charitable donations included £707,568 to the United World Schools to help build schools and boost the education of children in third world countries.
Founded by Susie Ma, Tropic’s cruelty-free and vegan product range has expanded over the years, with over 275 products across skincare, bodycare, haircare and makeup.
Ma appeared on The Apprentice in 2011 and Lord Alan Sugar “fired” her during the final round. Despite this, he invested £200,000 in her skincare brand in return for a 50% stake. During the financial year, Sugar charged the company £104,300 for management consultancy services.
Looking ahead, the company confirmed it expects to see turnover fall in 2022 compared to 2021. Turnover is expected to be "significantly" higher than 2019.
The news follows the launch of Tropic Skincare's "Nice To Meet You" advertising campaign, with over 200 sheet posters and digital placements at various London Underground stations.