Revolution Beauty raises FY23 guidance as profits rise

Revolution Beauty has raised its profit guidance for the financial year as it has revealed a pre-tax profit of £400k, an increase from a loss of £13.7m, in the six months ended 31 August. 

The company’s operating losses also narrowed from £12.5m to £500k over the period, which Revolution attributed to “lower levels of exceptional costs”. 

Over the course of the six months to 31 August, sales of the company’s beauty products jumped by 20% to £90.4m after the company noted growth in sales across all regions compared with a “softer” first-half year.

According to Revolution Beauty, the company has made a good start to H2 ahead of the Christmas trading period, and has upgraded its guidance to reflect this. The retailer now expects adjusted EBITDa to be “no less than double-digit millions” for the financial year. 

This will be an increase from the previous guided high single-digit millions. 

Lauren Brindley, chief executive of Revolution Beauty, said: “These figures underline the resilience and attractiveness of the Revolution brand during a period of well-publicised upheaval for the group. 

“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.”

She added: “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.”