The natural cosmetics and perfume company is looking to set itself on the road to recovery after posting a 21.6 per cent fall in net profit to €6.7m for 2007.

Unfavorable exchange rates, higher marketing expenditure and the discontinuation of certain activities all served to depress the company's profit figures.

Nevertheless, sales were up 4.4 per cent over the course of the year to €168.3m with higher growth coming from its perfume brands and the recovery of its domestic sales.

Slimming down

In international markets, which account for 60 per cent of Ales' turnover, sales increased 6.6 per cent at constant exchange rates but the company did shed some unprofitable businesses.

The company ended its distribution contracts for the Phyto and Lierac brands in Portugal and Holland.

Ales also stopped the commercialisation of its Phytoderm brand and closed down its boutiques in the US for its Caron fragrances.

Future plans

While Ales is trimming off unprofitable brands it is nonetheless looking to expand with the opening of new subsidiaries in Europe, which it says will be made possible by the solidity of its financial structure.

The company said so long as the international economic situation does not deteriorate significantly these projects should put it onto a path of high sales growth.

Directing the future direction of Ales will be Lorenza Battigello who was the former head of its Italian division and will be taking over as CEO from the company's founder Patrick Ales.

The new CEO will be aiming to duplicate the business model she constructed in Italy in the development of the new subsidiaries.