KUALA LUMPUR (May 23): InNature Bhd (KL:INNATURE) — operator of The Body Shop stores in Malaysia, Vietnam and Cambodia — is seeking to acquire The Body Shop business in Singapore from The Body Shop International Ltd (TBSI).
Auréa-owned TBSI owns and operates the business in the UK and several other European markets, as well as in Singapore, Japan, Hong Kong and Australia, among others.
In a filing with Bursa Malaysia on Friday, InNature said it has signed a memorandum of understanding (MOU) with TBSI and The Body Shop Singapore Pte Ltd (TBSS) for a potential acquisition of TBSS from TBSI with the purpose of entering the business of beauty and retail in Singapore.
"The MOU represents a preliminary statement of intent between the parties. The MOU will not have any effect on the share capital and substantial shareholders’ shareholdings of the company," it added.
InNature said the MOU is also not expected to have any material immediate effect on the group's earnings, net assets and gearing for the financial year ending Dec 31, 2025.
"The company will make the necessary announcement on the further development of the MOU in due course."
In Malaysia, InNature now has 76 stores, and in Vietnam, 36. In Cambodia, it has three outlets.
The group’s net profit for the first quarter ended March 31, 2025 (1QFY2025) fell 79% to RM500,000 from RM2.36 million a year ago, as revenue slipped 1.5% year-on-year to RM31 million. Gross profit margin for 1QFY2025 of 64.7% was also lower than the 67.8% recorded in 1QFY2024 as a result of higher promotions and increase in cost of goods sold.
In announcing its 1QFY2025 results, InNature group managing director Datin Mina Cheah-Foong had said that the group was exploring diversification opportunities both in terms of geographical coverage for its existing business and new brands that will allow it to capitalise on its strengths and resources.
InNature shares closed down one sen or 4.55% at 21 sen on Friday, giving it a market capitalisation of RM148.2 million. The stock has risen 10.5% so far this year.