UK's Revolution Beauty swings to positive adjusted EBITDA in H1
UK's Revolution Beauty swings to positive adjusted EBITDA in H1
Overview
UK mass beauty brand's H1 revenue fell 2% yr/yr, with underlying revenue up 8.3%
Company returned to positive adjusted EBITDA, reversing a loss in the prior year
Gross margin rose to 43.6% from 32.2%, driven by improved inventory and sales mix
Outlook
Company says it is trading at the top end of current full-year market expectations
Company cites market expectations for FY27 revenue of £92.0 mln to £95.0 mln
Result Drivers
INVENTORY & RANGE MANAGEMENT - Co said improved inventory and range management contributed to higher gross margin
COST REDUCTIONS - Co attributed profitability improvement to lower distribution, marketing and administration costs
ONLINE SALES GROWTH - Co said 22% increase in online sales reflected higher consumer engagement
Company press release: ID:nRSa5148Aa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 48.40 mln |
|
H1 Adjusted EBITDA |
| GBP 2.03 mln |
|
H1 Gross Margin |
| 43.60% |
|
H1 Gross Profit |
| GBP 21.10 mln |
|
H1 Pretax Loss |
| GBP 1.90 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "hold"
The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy."
Wall Street's median 12-month price target for Revolution Beauty Group PLC is GBp5.30, about 17.8% above its October 26 closing price of GBp4.50
Reuters Recommended Reads
Oct 26 - Chinese beauty brands, flush with success at home, start to vie for global shelf space
Oct 27 - UK retail body warns 'dam is starting to break' on price rises
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)