Revolution Beauty losses narrow as EBITDA returns to profit
Revolution Beauty has said its turnaround is firmly on track after its losses narrowed and EBITDA returned to profit.
The period covered the first six months of the first full year under the founder-led management team, with Tom Allsworth as chief executive and Adam Minto. The company said it had focused on driving product strategy and on the strengths that originally drove its success, including on-trend products, affordable pricing and speed to market.
Subscribe to TRBIn the six months to 31 August, adjusted EBITDA came in at £2 million, to mark a £14.5 million improvement on the £12.5 million loss reported in the same period a year ago.
The company reported a pre-tax loss of £1.9 million, compared with a loss of £18.4 million previously.
Revenue declined by 2% to £48.4 million, despite the period being flattered by clearance sales and sales of discontinued brands. Underlying revenue grew by 8.3%, and UK revenue returned to growth, up 1.7% to £15.6 million.
Revolution Beauty also reduced its operating costs by 32.7% in the period to £19.1 million.
Allsworth said: “I am delighted with the progress we have made in the first half. When Adam and I came back to the business, we set out to get Revolution doing what it does best – bold, on-trend, affordable beauty, brought to market quickly – on a platform that is profitable and properly controlled.
“These results show we are doing exactly that: gross margin is up more than 11 percentage points, our cost base is a third lower, and we have turned a £12.5 million EBITDA loss into a £2 million profit.”
With a stronger gross margin, a leaner cost base and a refreshed product pipeline, the company said it is confident that it is trading at the top end of the current range of market expectations for the full year.
Allsworth said: “Our customers are responding. Online sales are up 22%, our retail partners are backing our new ranges, and we are opening up exciting new opportunities such as our licensing partnership with Debenhams Group.
“I would like to thank the whole Revolution team, whose energy and commitment have made this possible. We enter the all-important second half with real momentum, and I am very excited about the future of Revolution Beauty.”
