Revolution Beauty reports 4.2% drop in revenues in H1
Digital wholesale revenue declined by 22% as the digital sector struggled with overstocking and the group’s own web sales declined 8%
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Revolution Beauty Group, the multi-channel mass beauty innovator, has reported a 4.2% decrease in revenues to £75.3m for the six months ended 31 August 2022.
The retailer’s operating loss in H1 23 narrowed from the previous year to £12.1m however, primarily due to reduced stock provision charge in the period and the benefit of no IPO fees as incurred in H1 22.
UK stores revenue grew 21% year-on-year helped by new distribution in Boots, and a good performance across Superdrug stores. Rest of the world store groups were down 6% year-on-year, due primarily to the timing of order placings.
Digital wholesale revenue declined by 22% as the digital sector struggled with overstocking, caused by the return of bricks and mortar retail coming out of the pandemic, and the group’s own web sales declined 8%.
Revolution Beauty has said to have delayed the release of its FY22 and H1 23 results due to the company’s auditor, BDO, identifying several serious concerns and informing the board that it was unable to complete and sign off the audit, until those concerns had been addressed satisfactorily. As a result, the board appointed Macfarlanes LLP and Forensic Risk Alliance to investigate the matters raised by BDO.
The investigation, which was reported to the board on 12 January 2023, found several accounting, governance and control issues identified. In response, Revolution Beauty “acted swiftly and decisively” and has addressed specific issues while continuing to improve corporate governance and internal controls across the global business.
For the second half of the year, the company is said to expect an improving trend in performance, with revenues expected to deliver low single digit growth against FY22.
Bob Holt OBE, CEO, said: “Our future growth is first and foremost via a global retailer strategy. Our direct to consumer online customer base grew in the year albeit we recognise the sentiment of a decline in online sales. As we look ahead, we remain confident, and expect single digit revenue growth in both the FY23 financial year, and the current FY24 financial year.”
