Revolution Beauty, the mass-market make-up brand, said it expects to deliver full-year results at the top end of market expectations after a first half in which it moved from a heavy loss to a profit at the adjusted EBITDA level.
The board said trading in September and October was in line with its expectations, and that order books for the autumn, winter and Christmas period are encouraging. The second half is seasonally the larger contributor to profit.
It put current market expectations for the year to 28 February 2027 at revenue of £92.0m to £95.0m and adjusted EBITDA of £6m to £6.6m. Those were upgraded after a trading update on 17 September.
Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation, adjusted for one-off items) was £2m in the six months to 31 August, against a loss of £12.5m a year earlier. It has been positive in every month for thirteen months.
Revenue slipped 2% to £48.4m. The prior year was flattered by clearance sales, discontinued brands and one-off licence income, and stripping those out, underlying revenue rose 8.3%.
Gross margin jumped 11.4 percentage points to 43.6%, as clearance activity fell away and charges netted off against sales dropped sharply. Operating costs fell 32.7% to £19.1m.
Online sales rose 22%, driven by TikTok Shop. The first collections under a new licensing deal with Debenhams Group, covering fragrance and gifting for PrettyLittleThing, Karen Millen and boohooMAN, launch before Christmas.
The pre-tax loss narrowed to £1.9m from £18.4m. Net debt fell £4.5m year on year to £25.7m, with cash of £4.3m.
Tom Allsworth, chief executive, said the business was "doing exactly" what it set out to do, adding that gross margin and cost base had improved sharply.
