Revolution Beauty has upgraded its guidance for the full year as it posted a rise in profits and revenue in the six months to August 31.
The beauty brand saw revenue grow 20% to £90.4m year on year, while adjusted EBITDA increased by £14.3m to £6.4m, which the group attributed to “sales performance, improved gross margin and cost control.”
It reported a profit before tax of £0.4m compared to a loss of £13.7m in the same period last year, while operating loss decreased to £0.5m following the previous £12.5m loss. This was said to be due to “improved performance and a lower level of exceptional costs.”
Revolution Beauty said it has made a “good start” to the second half of FY24 and, with Christmas trading still to come, has upgraded its guidance.
Adjusted EBITDA is now expected to be “not less than double-digit millions” for the full year and revenue growth is forecast to be in the high single digits.
Following a year of upheaval, the group “strengthened and refreshed” its board and management team and saw its UK store revenues grow 13%.
The “right” leadership
Group chief executive Lauren Brindley said: “Since joining Revolution Beauty, I have seen first-hand the strength of the Revolution brand, the brilliance of my colleagues and the enduring relevance of our product offer. It is these aspects which have supported the business over the past 18 months, and which I am confident will unlock future opportunities.
“With improved internal controls and the right leadership in place with clearer roles and responsibilities, momentum has built across the business in the first half of the year.
“Our strengthened financial performance and the return to positive EBITDA represents a significant milestone in the next phase of this business, while new retail partnerships in the US and strengthened retail partnerships elsewhere around the world are representative of our operational progress.”
She continued: “Looking ahead, I believe there are significant and compelling opportunities for Revolution Beauty within a large and attractive market. While there is still lots to do, we are on the right trajectory, and I am developing a strategic plan with our new executive leadership team to ensure we are best-placed to deliver future growth.
“I look forward to sharing this vision and more detail on our plans early in the new year.”
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