Revolution Beauty revenues rise following new leadership appointments

Revolution Beauty has upgraded its guidance after achieving a 20% increase in revenue to £90.4 million for the six months ending 31 August 2023.

The group said it strengthened its presence worldwide through new retail relationships, expansion of existing relationships and entry into new territories.

Store revenue grew 13% in the UK, with "strong" performances at Boots and Superdrug. It also increased 8% in the US, following Revolution Beauty's recent partnership with Walmart.

Gross margin improved to 49%, with "significant" improvement in freight rates, improving stock control and more focused New Product Development (NPD).

Adjusted EBITDA totalled £6.4 million, up by £14.3 million due to sales performance, improved gross margin and cost control.

Looking ahead, Revolution Beauty has upgraded its guidance for FY24. The group now anticipates adjusted EBITDA to be no less than double-digit millions, an increase from high single digit millions expected previously.

It also continues to expect revenue growth of high single digits for FY24.

Lauren Brindley, CEO of Revolution Beauty, said: " With improved internal controls and the right leadership in place with clearer roles and responsibilities, momentum has built across the business in the first half of the year.

"Our strengthened financial performance and the return to positive EBITDA represents a significant milestone in the next phase of this business, while new retail partnerships in the US and strengthened retail partnerships elsewhere around the world are representative of our operational progress.

"Looking ahead, I believe there are significant and compelling opportunities for Revolution Beauty within a large and attractive market. While there is still lots to do, we are on the right trajectory, and I am developing a strategic plan with our new executive leadership team to ensure we are best-placed to deliver future growth."

The trading update follows the appointment of Lauren Brindley as CEO.  Other recent appointments include Alison Hollingsworth as Chief Marketing Officer and Steve Vanoli as Chief Operating Officer, as well as four new Non-Executive Directors.