The man who led a turnaround of the business, Iain Pittman, said Arran Aromatics has been performing in line with expectations since the Business Growth Fund invested £2 million in the company in August.
The latest accounts for the business show it recorded a retained loss of £195,419 during the year to February.
Mr Pittman said the loss was triggered by provisions the company made for a possible loss in value of older stock items including labels it may not be able to sell.
"There is some legacy in there that we are being prudent about," he said, adding the company had not discontinued products lines.
In August Mr Pittman said Arran Aromatics had maintained sales at around £5.2m in the year to February and made a profit, before accounting for non-cash charges for items like stock provisions.
Mr Pittman said yesterday: "We are in line with the plan we set out to go down."
Mr Pittman, a shareholder in Arran Aromatics, said it recorded strong sales last weekend. But he said consumers and wholesalers seem to have delayed their Christmas.
Simon Munro, the Business Growth Fund's regional director Scotland, said: "BGF has only been involved in Arran Aromatics for a few months but good early progress has been made."
The fund's decision to invest in the firm reflected its belief in the potential of a brand developed by Iain and Janet Russell on Arran 25 years ago.
The 67-year-old Ms Russell remains a shareholder in the firm.