Revolution Beauty, the London-listed beauty company, released its Interim results for FY23 H1. The company’s revenue reached £75.3 million ($93.6 million), down 4.2%. Operating Loss narrowed to £12.1 million ($15.04 million) from £23.7m ($ 29.46 million) in H1 22.
Revolution Beauty, a beauty company listed in London, announced its interim report for the first half of the fiscal year 2023, which covers the six months ending on August 31, 2022. The company’s revenue for this period was £75.3 million ($93.6 million), representing a 4.2% decrease. However, the operating loss decreased from £23.7 million ($29.46 million) in H1 2022 to £12.1 million ($15.04 million) in the current period.
Revolution Beauty said the decrease in operating loss was mainly due to a reduction in the stock provision charge during the period and the absence of IPO fees that were incurred in the previous year’s H1. However, this improvement was partly offset by increased marketing and overhead expenses during the current H1 23 period.
The revenue from UK stores for Revolution Beauty increased by 21% compared to the previous year, which was attributed to the company’s new distribution arrangement with Boots and strong sales performance across Superdrug stores.
Revolution Beauty’s revenue from US stores remained flat, despite a recovering retail environment following the pandemic, due to the company’s new distribution arrangement with Walgreen. This new partnership helped to sustain US store revenue during a challenging period for retailers. While the rest of the world store groups were down 6% year on year, due primarily to the timing of order placings.
Revolution Beauty’s digital wholesale revenue decreased by 22%, which was attributed to the digital sector’s struggle with overstocking as brick-and-mortar retail bounced back after the pandemic. Additionally, the company’s web sales declined by 8% during the same period.
Bob Holt, the Chief Executive Officer, said: “Overall, performance was resilient in the first half of the FY23 financial year, and the Group narrowed previous losses and saw significant margin expansion. The half was one where our digital business was impacted by consumers moving back to bricks-and-mortar retail stores post-pandemic, but where Revolution’s omnichannel retail strategy mitigated the decline, with solid retail performances in our key markets.
“Our future growth is first and foremost via a global retailer strategy. Our direct-to-consumer online customer base grew in the year albeit we recognize the sentiment of a decline in online sales. As we look ahead, we remain confident, and expect single-digit revenue growth in both the FY23 financial year and the current FY24 financial year.” Bob Holt added.
