Cosmetics retailer Revolution Beauty has reported an increase in profits for the first half of the financial year despite declining sales amid “year of transformation”
For the six months to August 31, 2024, Revolution Beauty reported an 18% rise in underlying adjusted EBITDA from £3.3m to £3.9m.
Revenue at the beauty retailer did however fall 20% during the period, from £90.4m last year to £72.4m. This was a result of the “planned simplification of the product portfolio”.
The retailer also said the decline in revenue represents its “significant stock clearance activity”, which took place during the first half of the 2024 full financial year.
Revolution Beauty said its ongoing cost-saving programme remains “on track” and that distribution and administrative costs at the business are both down 33% and 30% respectively year to date.
Marketing costs during the year edged up 2% as the brand continued to invest in brand marketing to “underpin the future growth” of its core product range.
The beauty retailer hailed “encouraging progress” with existing and new retail partners including DM Germany, Boots, Walmart US and Amazon US.
In terms of outlook, Revolution Beauty said its guidance remains unchanged thanks to “continuing momentum in the underlying business”.
Revolution Beauty chief executive Lauren Brindley said: “This is a year of transformation for Revolution Beauty, and our performance in the first half reflects the steps we have taken to position the group for long-term, profitable growth. Since launching our new strategy in February, we have substantially cut a long tail of unproductive SKUs, improved our operational delivery and made good progress with our cost savings programmes. Consequently, we now have a core portfolio that is growing globally with a significantly improved underlying gross margin.
“As we look to the second half and beyond, we have a strong pipeline of growth initiatives, including new and expanded retailer relationships, a reinvigorated pipeline of make-up innovation, the launch of our new Skincare range and the global expansion of our budget brand, Relove. As these initiatives start to take effect, we expect a return to growth in Q4 and anticipate that this will accelerate through FY26. With good momentum in the underlying business, I remain highly confident in the Reigniting the Revolution strategy and in our ability to become a top five mass beauty brand.”
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