Warpaint posts record H1 revenues, lifts dividend

Cosmetics company Warpaint lifted its interim dividend on Wednesday as it hailed record first-half sales.

In the six months to 30 June, pre-tax profit rose to £3.5m from £0.2m in the same period a year earlier, with total revenues up 37% to a record £25.2m. UK revenue increased 17% to £10.4m, while international revenue was 55% higher at £14.8m.

The gross profit margin rose to 39% from 34.5% despite continued supply side price inflation and higher than historic freight costs. The board declared an interim dividend of 2.6p per share, up from 2.5p a year earlier.

During the half, Warpaint successfully launched 45 W7 products in an initial 80 Boots store. It also opened six new accounts in the US, including CVS.

Warpaint said online sales continued to accelerate in the UK and the US, with an increase of 44% in e-commerce sales in the first half of the year, compared to the same period a year earlier.

Chief executive Sam Bazini said: "I am pleased that following the return of the group to growth in 2021 this trend has continued in the first half of 2022. We have grown sales in the UK, continental Europe and elsewhere internationally in the period, all at an improved margin, despite supply side inflationary and other cost pressures.

"We have been, and continue to be, successful in both adding new retailers to our list of customers and expanding the number of products and outlets served with our existing major customers. I am confident that this can continue and we are working in partnership with a number of our larger existing retailers, both in the UK and internationally, to grow sales further. We are also in active discussions with additional major retailers."

At 1355 BST, the shares were up 3.2% at132.62p.

Warpaint is a specialist supplier of colour cosmetics and owner of the W7 and Technic brands.