Revolution Beauty posts full year profit

Full year sales at Revolution Beauty Group increased 2 percent to 191.3 million pounds, while profit before tax was 11.4 million pounds versus loss of 33.9 million pounds in FY23.

The company said that strong performance in the rest of world segment more than offset weakness in US and e-commerce.

Commenting on the company’s results, Lauren Brindley, Revolution Beauty CEO said in a statement: “FY24 was a year of great strategic and financial progress following two challenging years. We expect to see a return to growth in the second half of the year.”

Gross margin for the year of 46.2 percent was up 5.8 percentage points, while adjusted EBITDA was 12.6 million pounds and adjusted EBITDA margin was 6.7 percent.

The company added that gross inventory was reduced by 32 percent and stock turn increased by 47 percent to 2.2 from 1.5 a year ago. The company’s social media followers increased from 5.9 million to 6.4 million.

Revolution Beauty also strengthened the board of directors and management team.

In FY25, the company expects revenues to decline in the first half at a slightly higher rate than in the second half of FY24, reflecting a more focused product portfolio and the impact of stock clearance in the first half of the fiscal year. The company anticipates a return to revenue growth in the second half of the year.

Benefitting from the group’s ongoing cost savings programme, adjusted EBITDA for FY25 is expected to be at least in-line with FY24.