WORLD-leading face and body paint company Snazaroo, based in Minehead, fears it could be impacted by President Donald Trump’s tariffs on imports into the USA as it hopes for a better year ahead after posting accounts showing only a small profit in 2024.

Snazaroo, which marked its 40th anniversary year in 2024, employs 36 staff out of premises in Rainbow Way, and is now part of global creative brand Colart.

Accounts for the year ending last December 31 showed both the company’s turnover and profits fell in what directors described as ‘a difficult year’.

Snazaroo made £80,000 profit, down from £326,000 a year earlier, on a turnover of £3.124 million, which dropped from £3.54 million in 2023.

The directors said in their annual report they expected to see ‘a modest recovery in sales’ during 2025 as retailers continued to carefully manage their inventory and consumers were cautious in how they spent their disposable income.

They warned the continuing impact of American tariff developments remained uncertain and would be ‘carefully monitored with compensating actions taken as necessary’.

The directors said a number of retailers were facing increased financial pressure, with some entering bankruptcy, which had a consequential impact on manufacturers and distributors.

Additional sales pressure was being seen in Colart’s third party, distributor-led business, in particular in Latin America and Asia, where the impact of consumer inflation pressures had been delayed versus its retailer business due to an extra layer of inventory in the route to market.

A heightened level of price discounting and promotional activity continued to be seen in the market, which, combined with an increase in retailer private label, was causing a squeeze on retailer, brand owner, and manufacturer margins.

The directors said: “Through its brand portfolio, digital assets, and comprehensive distribution and communication reach, Colart is well positioned to manage the current market dynamics as well as future market changes due to its continuing strong partnerships with leading on and off-line retailers.

“Most of the leading retailers have continued to invest in improved e-commerce capability and continue to look to Colart as a best-in-class supplier, able to offer a high quality and inspiring programme of activation, supported by strong visual assets.

“Sales via Amazon continue to play a leading role across all Colart’s major markets, both as a direct customer and as a marketplace for retailers, enabling consumers to easily research and purchase creative materials from anywhere in the world.

“Retailers will need to continue to respond by improving and differentiating their own e-commerce offering and by adding value to the consumer experience through the provision of education and inspiration.

“Consumers are also looking more and more to have a direct relationship with brands, and as such Colart will increase focus on reaching and engaging new and existing consumers via communication on social and email channels, as well as through expansion of the reach of its brand e-commerce websites, available for each of the major brands and in a number of languages.”