Revolution Beauty鈥檚 difficult transformation continues following the chaos of the last two years.
The beauty brand saw revenues drop 20% from 拢90.4 million to 拢72.4m in the six months ended 31st August 2024, while gross profit fell 48% to 拢23.2m and operating losses increased from 拢500,000 to 拢9.8m.
Revolution鈥檚 share price has tumbled more than 50% this year. It floated in July 2021 with a valuation of almost 拢500m, but is worth less than 拢43m today.
However the H1 2025 results shows the green shoots of a turnaround.聽
Operating costs fell 23% to 拢29.5m while earnings before interest, tax, depreciation and amortisation (EBITDA) grew 18% from 拢3.3m to 拢3.9m as distribution costs decreased by 33% and administrative costs fell by 30%.
This follows the planned simplification of its product portfolio and the discontinuation of unproductive SKUs (stock-keeping units). The firm said the results also reflect significant stock clearance activity in the first half of FY24.
During the period Revolution agreed deals to sell into hundreds of stores in Germany, 250 new Boots stores in the UK and more than 1,800 Walmart stores in the US. Followers also grew on its core social platforms Instagram and TikTok.
“This is a year of transformation for Revolution Beauty, and our performance in the first half reflects the steps we have taken to position the group for long-term, profitable growth,鈥� said Lauren Brindley, group CEO.
鈥淪ince launching our new strategy in February, we have substantially cut a long tail of unproductive SKUs, improved our operational delivery and made good progress with our cost savings programmes. Consequently, we now have a core portfolio that is growing globally with a significantly improved underlying gross margin.鈥�
鈥淚 remain highly confident in the 鈥榬eigniting the Revolution鈥� strategy and in our ability to become a top five mass beauty brand.”
Earlier this year former CEO and co-founder Adam Minto agreed to pay a settlement of 拢2.9m to the cosmetics brand after it alleged that he had breached his fiduciary duties to the company. No admission or acceptance of liability was made by either party.
After Revolution failed to file its FY22 accounts and concerns were raised by auditors BDO over the state of its books, its shares were suspended from trading on 1st September 2022. An independent investigation then found the founders had made personal loans or other investments worth 拢1m without the board鈥檚 knowledge and that sales had been overstated by 拢9m.聽
It also criticised the terms of the acquisition of聽 haircare and skincare products manufacturer Medichem, owned by Minto鈥檚 fellow co-founder Tom Allsworth. The report led to the resignation of Allsworth as executive chair and Minto as CEO.
In December, Allsworth agreed an amended timetable with Revolution for deferred payments owed to him for his stake in Medichem.
Last year fast fashion giant Boohoo – a shareholder in Revolution – effectively forced a further boardroom shakeup at the company in a chaotic series of events.