Revolution Beauty FY22 Revenue Up 35% with Loss Widen to $48 Million

UK-based Revolution Beauty reported revenue of £184.57 million ($ 227.94 million) in FY22, with an increase of 35%. While the operating loss widens by £29.4 million ($36.32 million) to £38.86 million ($48 million).

---

Revolution Beauty, the London-based cosmetic manufacturer, released its delayed audited financial results for the full year ending on February 28, 2022. The company reported revenue of £184.57 million ($ 227.94 million), which saw growth of 35%. While the operating losses widen by £29 million ($36.32 million) to £38.86 million ($48 million).

The sales performance of Revolution Beauty in FY22 as compared to FY21 was boosted by the strong brand and the company's multi-channel offering, which includes both in-store and online sales. UK store sales increased by 41%, US store sales increased by 18%, ROW store sales increased by 43% and the group's online sales increased by 3%.

The adjusted EBITDA loss of £0.8 million ($0.98 million) in FY22 is significantly lower than the EBITDA profit of £12.2million ($15.07 million) in the previous year (12 months to 28 February 2021), which was mainly driven by an increase in the stock provision of £11.3 million ($13.96 million) and especially high freight costs due to pandemic related global freight issues.

Revolution Beauty said the makeup category is the primary source of revenue for the company, with Makeup Revolution driving sales growth above the total group level with a 34% increase in sales in FY22. Despite some strong pandemic-related consumer behavior trends, skincare sales continued to grow in FY22, with a growth rate of 20%. Haircare had a strong H2 in FY22 with the global launch of Plex.

The auditors of Revolution Beauty showed concerns about the accounts in August, following which the shares were suspended from trading in September, and the release of the full-year results was also delayed. Then the CEO Adam Minto resigned from his position in November.

“We are confident as we look ahead and will provide a current trading update alongside the interims to the 31 August 2022 which will be published shortly after this annual report. The current year FY24 has started positively with sales, EBITDA, and cash tracking ahead of management’s forecasts,” said Chief Executive Officer Bob Holt.