Revolution Beauty returns to profit as sales surge in half-year results

By Alessandro Carrara | Published: 14-Nov-2023

The positive results have led Revolution Beauty to increase its financial outlook for 2024

Revolution Beauty has returned to profit in the first half of FY24, after reporting a leap in revenue growth.

Pre-tax profit was reported at £400,000, an increase from the £13.7m loss it posted during the same period last year.

This was supported by a 20% increase in revenues to £90.4m, with sales growth seen across all of the brand’s key operating markets.

Operating loss also narrowed to £0.5m, an improvement on the £12.5m loss recorded in H1 2022, which was the result of bolstered performance and a lower level of exceptional costs.

The sales boom has led Revolution Beauty to increase its financial outlook for 2024.

It now expects to end the year with EBITDA growth to be in the double-digit million range, an upgrade on the previously anticipated high single-digit millions results.

"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,” said Lauren Brindley, Group CEO.

“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.”

The half-year performance was also supported by an increase in retail partnerships and expansions into new business territories.

US store revenue grew 8% during the period due to a newly penned partnership with US supermarket chain Walmart.

Revenue growth in the UK, meanwhile, increased 13% with strong performances across Boots and Superdrug.

"Looking ahead, I believe there are significant and compelling opportunities for Revolution Beauty within a large and attractive market,” said Brindley.

“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.”

Revolution Beauty stocks a range of skin care and cosmetics products

Revolution Beauty stocks a range of skin care and cosmetics products

Brindley was appointed as the beauty brand's new CEO in August this year.

She replaced Bob Holt, who resigned from the leadership team as part of an agreement with Boohoo that allowed it to take over the brand’s board in July.

Brindley has been accountable for leading the beauty business globally and overseeing its strategic growth.

"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,” she added.

“It is these aspects which have supported the business over the past 18 months, and which I am confident will unlock future opportunities.”

The positive half-year performance has provided the cosmetics brand with some reprieve after a year filled with challenges.

It began with a damning investigation into the company, which revealed a slew of management failures.

This was exacerbated by a period of lagging sales that plagued the beauty retailer in 2022.

The situation escalated after e-tailer Boohoo declared it was staging a coup against the beauty brand in June 2023.

Boohoo claimed board members did not hold the “right retail, e-commerce and consumer brands experience” to deliver shareholder value and planned to oust the leadership team.

Revolution Beauty hit back at Boohoo’s takeover attempt, however, calling it “value-destructive, opportunistic and self-serving”.

But a turn of events came in July 2023 when Revolution allowed Boohoo to take over its board, ending its month-long public spat with the retailer.

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