Revolution Beauty ups profit and sales guidance as new strategy pays off
() , a multi-brand beauty product innovator, issued a trading update for the year ended February 20, 2024 (FY24).
Revolution Beauty reported continued improvement in profitability since its trading and strategy update on February 8, 2024. As a result, the company upgraded its guidance, now expecting adjusted EBITDA of at least £12.5m and revenue growth of c. 2% for FY24. This compares to the previous guidance of adjusted EBITDA between £11-12m and revenue growth of low single digits. Markets welcomed the news, sending shares 9% higher on Wednesday.
On February 8, 2024, Revolution Beauty held a capital markets event where it outlined a plan to transform the business and accelerate growth, with a view to drive annual retail brand sales of £1bn by 2030. The strategy is built on 3 key pillars - focusing investment on the "Revolution" brand to leverage brand equity; materially reducing the number of SKUs and concentrating on key products; and expanding distribution and retail partnerships with a focus on the US. The group also announced plans to deliver £10m of cost savings over the next 3 years.
expects to report its FY24 results in June 2024.
View from Vox
Revolution Beauty's new growth strategy announced in February is already yielding results as the group announced a significant upgrade to its profit and sales guidance today, the second one in 2 months. Combined with 's previously detailed cost savings programme, and with legal woes now firmly behind it, there is material upside ahead.
reported encouraging responses from major customers to its new direction. The decision to reduce the number of SKUs and zero in on more profitable brands has already shown results, with double-digit growth in sales of 's core "Revolution" brand compared to H2 2023. At the same time, the transition away from lower-margin products should have a short-term negative impact on sales, therefore more upside lies ahead.
Looking ahead, major product launches are planned for 2024 amid newly signed distribution deals with TikTok and Amazon US.
Follow News & Updates from Revolution Beauty:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.