Revolution Beauty raises profit guidance after improved performance
Cosmetics brand Revolution Beauty has raised its full year profit guidance after seeing a year-on-year improvement in profitability since its Capital Markets Day in early February.
It now expects adjusted EBITDA to be at least £12.5 million and revenue to grow by around 2% in the year to the end of February. This compares to the previous guidance of adjusted EBITDA of between £11 million and £12 million and revenue growth of low single digits.
Revolution Beauty said its new strategy of focusing on its masterbrand, core categories and selected geographies to drive growth is progressing well, although the exit of lower margin products and brands has caused a short-term impact on sales as expected. The company is also working to save £10 million in costs.
Lauren Brindley, Revolution Beauty chief executive 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 FY 2023.
“Our major product launches for 2024 are ahead of plan 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.”
