Revolution Beauty returns to profit and ups guidance after end of Boohoo spat

Revolution Beauty returned to the black during the first half of its financial year.

The company has posted a pre-tax profit of £400,000 for the six months to August 31, 2023, after falling to a loss of £13.7m during the same period in 2022. Its revenue also increased from £75.3m to £90.4m.

The figures come after the business had been locked in a bitter public spat with its largest shareholder, Boohoo. The feud came to an end in July when the two companies agreed a settlement deal.

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In a statement issued to the London Stock Exchange, Revolution Beauty added it has made a good start to the second half of its financial year, with revenue and adjusted EBITDA "in line with internal forecasts". The group also upgraded its guidance for the full year and now expects adjusted EBITDA to be not less than double-digit millions for FY24, an increase from the previously guided high single digit millions. The group continues to expect revenue growth to be in the high single digits in FY24.

Chief executive Lauren Brindley said: "Since joining Revolution Beauty, I have seen first-hand the strength of the Revolution brand, the brilliance of my colleagues and the enduring relevance of our product offer. It is these aspects which have supported the business over the past 18 months, and which I am confident will unlock future opportunities.

"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. 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.

"Looking ahead, I believe there are significant and compelling opportunities for Revolution Beauty within a large and attractive market. While there is still lots to do, we are on the right trajectory, and I am developing a strategic plan with our new executive leadership team to ensure we are best-placed to deliver future growth. I look forward to sharing this vision and more detail on our plans early in the new year."