Yesterday, Revolution Beauty Group released its latest financial report for the year ending in February. The company reported a return to profitability and significant progress in its “Reigniting the Revolution” strategy. In its financial report, its revenue increased by 2% to £191.3 million, and gross profit rose by 16% to £88.4 million, improving the gross margin from 40.4% to 46.2%. Additionally, operating costs dropped by 9%, thanks to an ongoing three-year cost-savings program.
Adjusted profit before tax also saw a dramatic shift from a £26.7 million loss to a £4.3 million profit. On a statutory basis, profit before tax rose from a loss of £33.9 million to a positive £11.4 million. The 2% revenue increase included significant product clearance activity in the first half of the year, with strong performance in the Rest of World (ROW) markets offsetting weaknesses in the US and e-commerce.
As for regions, sales of company in the UK declined by 6.7%, with digital revenue falling as marketing spend was reduced and customers returned to physical stores. In the US, sales dropped by 14.8% due to store revenue declines amid business volatility. However, the ROW segment saw impressive growth of 22.8%, driven by direct retail and distributor channels.
Revolution Beauty said that it has a clear strategy to “Reignite the Revolution,” focusing on its core product categories and aiming to become a top-five global player in the mass beauty market.
The company expanded its retail distribution across key regions and launched a more efficient New Product Development (NPD) strategy. Gross inventory decreased by 32%, and service levels improved for all retailers in the second half of the year. Social media followers grew from 5.9 million to 6.4 million.
CEO Lauren Brinkley commented on the progress: “FY24 was a year of great strategic and financial progress following two challenging years. Our new Reigniting the Revolution strategy is already delivering improvements across the business, strengthening our core and providing a much firmer platform from which to grow.”
Looking ahead, Brinkley anticipates a decline in revenues year-on-year in the first half of FY25, reflecting a more focused product portfolio and the impact of stock clearance in FY24. However, with a renewed innovation pipeline and opportunities to expand the distribution network, she expects a return to revenue growth in the second half. The ongoing cost-savings program is projected to keep Adjusted EBITDA for FY25 at least in line with FY24, with significant gains expected in the second half.
