Revolution Beauty posts drop in first half sales and profit
Revolution Beauty saw its total net sales fall by 20% to £72 million in its first half after a planned simplification of its product portfolio and the discontinuation of unproductive SKUs.
However, net sales from Revolution Beauty’s core range increased by 6% in the period, with growth accelerating to 16% year-on-year in the second quarter.
Excluding stock provisions, underlying adjusted EBITDA came in at £3.1 million in the first half compared to £3.5 million a year earlier.
Lauren Brindley, Revolution Beauty chief executive, said: “In the last six months, we have made great progress in our Reigniting the Revolution strategy.
“We have reduced our SKU portfolio significantly, enabling improved underlying gross margin performance, on a core set of SKUs that are growing globally.
“This year is a transformational year for the company, as we focus on simplifying the business, improving our operational efficiency and positioning ourselves for profitable and sustained success.”
Due to its performance in the period, Revolution Beauty now expects its full year sales to decline year-on-year at a slightly slower rate than in the first half, with a return to growth in the fourth quarter as new initiatives begin to yield results.
Brindley added: “We expect a return to growth in Q4, as we begin landing our new growth initiatives, including a reinvigorated pipeline of make-up innovation, the launch of our new skincare range and the global expansion of our budget brand, Relove.
“I remain highly confident that our Reigniting the Revolution strategy will deliver attractive, long-term, profitable growth.”
