Full Year Trading Update

RNS Number : 5370K

Revolution Beauty Group PLC

06 May 2022

 

For Immediate Release

6th May 2022

REVOLUTION BEAUTY GROUP PLC

("Revolution Beauty", the "Group" or the "Company")

Full Year Trading Update

Full Year Performance in line with market expectations

Strong FY22 Sales up c. 42% and adjusted EBITDA up c. 73%
Record sales in Q4

Revolution Beauty Group plc (AIM: REVB), the global multi-brand, multi-category mass beauty innovator, is pleased to announce an update on trading for the year ended 28 February 2022.

Revolution Beauty has experienced continued positive momentum in H2 2022. The Group reports, subject to audit, revenue of c. £194mil up 42% versus 12mth ending Feb 2021, and Adjusted EBITDA c. £22mil up 73% versus 12mth ending Feb 2021. This performance was achieved against a background of inflationary pressures last year, including freight and pandemic related volatility.

Revolution Beauty's performance was underpinned by the company's geographic and category mix. Key highlights for the full year include:

· Record Q4: As indicated at our sales update in January, Revolution benefited from a record fourth quarter with global retailer expansions in Boots and Walgreens and ROW. Sales in the second half were up c. 44% year on year.

· UK Stores: In the UK, sales growth was strong, up c. 85% year on year, supported by post pandemic footfall recovery amongst retail partners, and a successful roll out of Makeup Revolution into Boots.

·     US Stores: The USA is now Revolution's biggest single market at c. 20% mix of our business, delivering sales growth of c. 27% for the full year. This growth was achieved against a strong FY21 comparator, where Makeup Revolution was rolled out across Target for the first time.

· ROW Stores: The Rest of the World bounced back in FY22, with strong sales in the year, up c. +79%. ROW is now c. 35% of Revolution's global business.

· DTC:   Our digital first strategy saw us gather insights, and "test and learn" new trends and products through the year, with successes including Plex Haircare and Fragrance.  We also sold online over 100k units of our Christmas Advent Calendar across peak trade and continued to see encouraging results across our localised websites of the USA and Australia.

· Balanced Model: Our omnichannel route to market continued to balance the Revolution Beauty business model with growth across both digital and retail distribution. Digital platforms generated c.29% of sales with c.71% coming from retail stores in FY22. 

Adam Minto, Group CEO, commented:

The Group delivered a strong full year performance, in line with expectations, and driven by the strength of our omnichannel route to market. We had a record fourth quarter in FY22 and saw strong broad-based sales growth across categories and geographies with revenue for the full year increasing by 42% against the previous year. The US has become our biggest single market in terms of store sales, while retail in the UK and the Rest of World continued to bounce back to pre-pandemic levels.

The success of our "In Real Life" make-up range, our co-created Sali Hughes skincare range, plus our successful launch this week into 2800 Walgreen Stores across the US, all demonstrate continued strong momentum into the first quarter of the year and give us real confidence as we move forward.

In a world where consumers are feeling the pressure from increased prices in almost every aspect of their lives, mass market beauty is perfectly positioned as the affordable choice. Like everyone, we remain mindful of the current economic climate, but we know Revolution's mission to offer quality products at affordable prices remains as relevant as ever. Looking ahead, Revolution remains confident as it pursues its strategy and continues its growth trajectory."

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For further information:

Revolution Beauty Group plc
Adam Minto, Founder & CEO
Tom Allsworth, Founder & Executive Chairman	www.revolutionbeautyplc.com
Zeus  (Nominated Adviser & Broker)
Investment Banking
Nick Cowles / Jamie Peel / Jordan Warburton		Tel: [phone]
Equity Capital Markets		Tel: [phone]
Dominic King / Ben Robertson		www.zeuscapital.co.uk

Media enquiries:

Headland Consultancy  Rosh Field / Will Smith / Marta Parry-Jones

Tel: [phone] Tel: [phone] [e-mail]

About Revolution Beauty

Revolution Beauty is a global mass beauty and personal care business which operates a multi brand, multi category strategy and sells its products both direct-to-consumer (DTC) via its e-commerce operations, and in physical and digital retailers through wholesale relationships.

Today, the Group has a retail footprint of c.15,000 doors across leading retail chains in the UK, USA and other international markets. Revolution Beauty has access to a wide customer base, predominantly aged between 16 and 35, through its digital partners and own DTC platform. It has established and invested to streamline its supply chain with its own manufacturing facility in the UK, and third-party warehousing facilities across the UK, USA and Australia. The Group has offices in the UK, USA, New Zealand and Germany. Revolution Beauty currently employs 411 people.

The total mass beauty market was worth $219bn in 2019 and is expected to grow to $274bn over the next 3 years, driven by a new marketing era dominated by Social Media and influencers. Revolution Beauty has been a leading innovator building a significant global following across social channels, enabling it to spot trends and respond quickly to consumer demand.

Revolution Beauty strategy

Revolution Beauty Group is disrupting the traditional beauty market through products that are more accessible to more people. Through its digital-first strategy, Revolution Beauty brings trend-led products to market faster than competitors. We invest in innovative marketing strategies designed to appeal to a wider audience, and offer products combining quality, inclusivity, innovation and affordability.

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