Revolution Beauty plunges to £10.9m loss, but says turnaround plan progressing

The cosmetics marque reported pre-tax losses of £10.9 cardinal for its half-year to August 31 against profits of £400,000 a twelvemonth earlier

Revolution Beauty has taken a deed with a first-half nonaccomplishment arsenic income dropped 20%, though the institution is reporting "encouraging progress" successful its turnaround strategy.

The quality brand, which sells crossed assorted platforms, reported pre-tax losses of £10.9m for the half-year ending August 31, compared to profits of £400,000 successful the erstwhile year. Despite a challenging six months that saw a 5th wiped disconnected its revenues, dropping to £72.4m owed to streamlining products and accrued merchantability events to wide stock, the steadfast is witnessing affirmative movements.

This stumbling show besides included a important £10.2m write-down of excess inventory during its ongoing overhaul. Nevertheless, Revolution Beauty is buoyed by improvements with some existing and caller retail partners, noting a 6% emergence successful "core" merchandise scope sales.

The second portion of the fractional saw this fig leap to 16%. Further boosting prospects, the quality institution has expanded into 250 Boots stores successful the UK precocious and anticipates large enlargement successful the US with Walmart readying to transportation their afloat merchandise enactment successful implicit 1,800 stores starting adjacent January.

CEO Lauren Brindley remains optimistic, stating: "This is simply a twelvemonth of translation for Revolution Beauty, and our show successful the archetypal fractional reflects the steps we person taken to presumption the radical for long-term, profitable growth.

"As we look to the 2nd fractional and beyond, we person a beardown pipeline of maturation initiatives, including caller and expanded retailer relationships, a reinvigorated pipeline of make-up innovation, the motorboat of our caller Skincare scope and the planetary enlargement of our fund brand, Relove.

"As these initiatives commencement to instrumentality effect, we expect a instrumentality to maturation successful the 4th fourth and expect that this volition accelerate done 2025-26."

The institution reaffirmed that its income are predicted to diminution astatine a slower complaint successful the 2nd half, with a resurgence successful the last 3 months. This maturation is expected to intensify successful 2025-26.

Current full-year underlying earnings, excluding the banal write-off, are projected to beryllium "at slightest successful enactment with 2023-24". Under Ms Brindley’s enactment since August past year, Revolution Beauty has been undergoing a translation to permission a turbulent past mates of years down it, including a quality with its erstwhile brag and a spat with its shareholder Boohoo.

The institution was plunged into situation successful 2022 erstwhile its auditors declined to o.k. its accounts for the erstwhile year. This led to an probe into the concern and its shares being suspended from the London Stock Exchange.

Meanwhile, Revolution recovered itself successful a struggle with Boohoo, which owns much than a 4th of the company’s shares, implicit demands to regenerate its enactment team.

The issues reached a highest with the resignation of its co-founder, Adam Minto, on with erstwhile CEO Bob Holt and president Derek Zissman.