Mecca Faces Scrutiny Over Financial Reporting Delays

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Pick & Scroll News
May 25, 2025

Beauty retailer Mecca is under scrutiny for failing to submit its company accounts on time, raising concerns about transparency as ASIC considers possible enforcement measures. The company posted strong growth, including a $26.9 million after tax profit in 2022. However, repeated delays in submitting financial statements may hurt its reputation and could lead to penalties.


Mecca is one of Australia's leading privately owned retailers. It last submitted financial results to the corporate regulator in November 2023 for the 2022 calendar year. Under Australian law, large proprietary companies must lodge their accounts within four months of the end of the financial year. Mecca appears to have missed this deadline for several consecutive years.


The most recently submitted financials show revenue rose sharply to nearly $972 million in 2022, up from $689 million in 2021. Profit increased as well and the company expanded its workforce to more than 6,100 employees. Despite this growth, Mecca filed its 2021 accounts more than a year late. The 2023 and 2024 financial reports have yet to be filed. During the same time frame, ASIC pursued enforcement against 12 other companies for similar issues, resulting in over $400,000 in fines.


Mecca continues to grow and recently announced plans for new flagship locations, including a major store on Bourke Street in Melbourne and a two storey outlet in Adelaide. However, this expansion comes as the company faces growing scrutiny. It was recently ranked 70th on IBISWorld’s list of the top 500 Australian private companies, with $1.12 billion in annual revenue as of December 2023. While the numbers indicate strong growth, Mecca’s ongoing compliance issues could raise concerns among regulators and business partners.


There is also growing debate about the long term legality of the exclusivity agreements that have driven Mecca’s success. Under competition law, contracts that significantly limit market competition may not be permitted. In the meantime, the continued delays in financial reporting raise legal and reputational risks that remain unresolved.