Beauty retailer Lush posted a dip in full-year pre-tax profits as its Japanese operations dragged down the group.

Earnings dropped £1m to £21.3m in the year to June 30 2011.

However, group turnover jumped 10% to £272m. The upward trend has continued, with group revenue up 15.6% in the first eight months of the current financial year.

Chief executive Andrew Gerrie said trading conditions in the reporting year were “challenging” but that remains optimistic about the future because of Lush’s “innovative” products and management team.

The group now has 806 shops internationally.