Revolution Beauty lifts outlook as it progresses growth strategy

Revolution Beauty, which published expectations for FY24 last month, has upped the ante. The company is now expecting an EBITDA of at least £12.5 million and revenue growth of 2% for the financial year.

This compares to previous guidance of an adjusted EBITDA between £11-12 million and revenue growth in the low-single-digits. The results, which are set to be published in June, are set to reveal "strong operational performance and year-on-year improvement".

It comes as the business looks to get back on track after experiencing legal battles and shareholder revolts following accounting issues that led to its suspension on the London Stock Exchange.

Lauren Brindley, CEO of Revolution Beauty, said: "It is early days, but we are already seeing positive impacts from the new strategy, including an encouraging response from our major customers and good progress on our cost savings programme.

"Our focus on driving sales from our more profitable brands is starting to deliver, with double-digit growth in sales of our core Revolution masterbrand versus the second half of FY23.

"Our major product launches for 2024 are ahead of plans as we focus on fewer and more impactful new products. We also opened our TikTok shop this week and are preparing to go live with a new direct Amazon US partnership in May 2024.

"I remain highly confident about our growth prospects and our ability to become a top-five mass beauty player."

Last month, the company announced its new strategy, titled "Reigniting the Revolution". This will attempt to support the business in delivering long-term profitable growth.

It focuses on three key areas, including investing in the Revolution brand, concentrating on the development of key products, and managing distribution and retail partnerships to maximise returns.

The group expects to deliver £10 million of cost savings over the next three years, which will be used to invest in future growth initiatives.

Also last month, Revolution Beauty reached a settlement agreement with Co-founder and former CEO Adam Minto to draw a line under the issues with its accounts, which threw the business into crisis in 2022.