Revolution Beauty Group (REVB) H2 2024 earnings summary

Executive summary

• Returned to profitability in FY 2024, reflecting increased operational rigour, cost control, and a strengthened leadership team with an independent board.

• Implemented the 'Reigniting the Revolution' strategy, focusing on core brands, cost optimization, and operational excellence to drive sustainable growth and aiming for top five mass beauty player status by 2030.

• Major SKU and brand rationalization, improved inventory management, and enhanced retailer relationships have set the stage for future growth.

• Early progress seen in optimizing the brand portfolio, focusing on core categories, and driving global growth.

Financial highlights

• Revenue rose 2% year-on-year to just over £191 million, with gross profit up 16% to £88.4 million and gross margin improving by 5.8 percentage points to 46.2%.

• Adjusted EBITDA was £12.6 million, a turnaround of over £20 million from the prior year’s loss.

• Adjusted EBIT reached £7.4 million, a £30.8 million improvement.

• Profit before tax was £11.4 million; cash at year-end was £8.6 million, with net debt at £23.1 million.

• Distribution costs fell 15% year-on-year, and marketing costs were nearly £6 million lower than FY 2023.

Outlook and guidance

• First half FY 2025 revenues expected to decline due to discontinued brands/SKUs and absence of prior year clearance sales.

• Revenue growth anticipated to return in H2 FY 2025 as innovation pipeline and core brand focus take effect.

• Adjusted EBITDA for FY 2025 expected at least in line with FY 2024, with a significant weighting toward year-end.

• Cost-saving initiatives and improved stock turn to support profitability and reinvestment in growth.