Revolution Beauty Swings to Adjusted EBITDA Profit

Revolution Beauty Group (LON: REVB) swung to a £2.0m adjusted EBITDA profit in the six months to the 31st of August, from a £12.5m loss a year earlier. Results were released at 7am today.

The profit came on revenue of £48.4m, down 2.0% from £49.4m, and equals 4.1% of revenue. Underlying revenue grew 8.3%.

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The swing came from margins and costs. Gross margin rose to 43.6% from 32.2%, because last year’s clearance sales and heavy gross-to-net charges did not repeat. Operating costs fell 32.7% to £19.1m.

The group is still loss-making before tax. Chief executive Tom Allsworth framed the half this way:

gross margin is up more than 11 percentage points, our cost base is a third lower, and we have turned a £12.5m EBITDA loss into a £2.0m profit.

Tom Allsworth, chief executive

The balance sheet remains stretched. Net debt of £25.7m is borrowings of £30.0m less £4.3m of cash, net liabilities are £32.0m, and the directors say a material uncertainty exists over the group’s ability to continue as a going concern. Their downside case would breach covenants without mitigating action.

On outlook, the board says September and October trading is in line with its expectations and that the group is at the top end of market expectations for the year to the 28th of February 2027: revenue of £92.0m to £95.0m and adjusted EBITDA of £6.0m to £6.6m. The second half is seasonally larger.