Revolution Beauty warns of 'small' H1 loss, delays FY reporting date

Cosmetics group Revolution Beauty has delayed the publication of its full-year results, stating additional time was required to complete its audit, and warned that it now expects to deliver "low single digit revenue growth" and a "small" adjusted underlying loss for the first half of its current trading year.

Revolution Beauty also said it now expects between £215.0m-£225.0m net sales and an adjusted EBITDA of between £18.0m and £20.0m for the twelve months ending 28 February 2023, principally due to "the unprecedented macroeconomic backdrop in the first half of 2022".

The AIM-listed group highlighted that sales and profitability had been impacted by changes to sales and buying strategies in the US following the pandemic, as well as cost inflation and a return to in-store shopping following the Covid-fuelled online boom.

"As we approach the seasonally stronger second half, and actively manage costs across the business, we will benefit from leveraging our overhead base in line with previous years. Confidence in the second half is underpinned by significantly increased retailer distribution in H2 FY23 versus H2 FY22," said Revolution Beauty.

As of 1045 BST, Revolution Beauty shares had sunk 57.34% to 26.20p.

Reporting by Iain Gilbert at Sharecast.com