23
January 2025
Revolution Beauty Group
plc
("Revolution Beauty", the
"Group", or the "Company")
FY25 Trading
Update
Revolution Beauty Group, the
multi-channel mass beauty brand, is today providing an update on
trading for the year ending 28 February 2025 ("FY25").
FY25 is a transformational year for
Revolution Beauty, during which it has discontinued over 6,000
unproductive SKUs - some 75% of its original portfolio - to create
a scalable and profitable foundation for future growth. The Company
continues to transition its global retailers onto this core set of
products.
Revolution Beauty also continues to
make encouraging progress expanding its relationships with existing
and new retailers. However, certain retailer launches that were
expected in Q4 25 will now take place in H1 26. The scale of these
opportunities remains the same, and the launches into Walmart in
the US and DM in Germany remain on track for February
2025.
In addition to this phasing impact,
the Company experienced some sales softness in December 2024 in its
digital channels and an element of de-stocking from USA retailers.
As a result, the Company now expects net sales for FY25 to decline
c.25% and high single digit millions underlying adjusted EBITDA
supported by the continued positive delivery of our operational and
cost savings programmes. The one-off stock provision for the
non-strategic discontinued stock announced in the interim results
remains unchanged. We continue to be in compliance with our banking
covenants with sufficient liquidity headroom. Our cash
balances were £6m at the end of December 2024 and net debt was £26m
including a fully drawn RCF of £32m.
The Company's core SKUs continue to
grow, including through channels such as Amazon, which are
performing well in both the USA and Europe.
Looking ahead, Revolution Beauty is
confident in a return to overall growth in FY26, as new strategic
growth initiatives such as the launch of the new SKIN brand, the
relaunch of our value brand RELOVE, and as the core SKU growth
accelerates globally. This will be underpinned by significant
margin improvements in the medium term.
The
information contained within this announcement is deemed by the
Group to constitute inside information as stipulated under the
Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK
domestic law by virtue of the European Union (Withdrawal) Act
2018.
For
further information please
contact:
Investor Relations
Lauren Brindley, CEO
Neil Catto, CFO
Investor.Relations@revolutionbeautyplc.com
Panmure Liberum Limited (Nomad and Joint
Broker): Edward Thomas / Dru Danford
/ John More
Tel: +44 (0) 203 100 2222
Zeus (Joint Broker): Benjamin
Robertson / Nick Cowles / Jordan Warburton
Tel: +44 (0) 161 831 1512
Media enquiries
Headland Consultancy: Matt
Denham / Antonia Pollock
Tel: +44 (0)20 3805 4822
Revolutionbeauty@headlandconsultancy.com
