Revolution Beauty warned investors last month its first-half figures wouldn’t be pretty. And today (19 November), the UK-based multi-channel mass beauty brand revealed revenues for the period fell 20% and gross profit was down an even uglier 48%.

But last month there was also a promise of news on its turnaround plan. And in order to get to a much better place, the group’s ‘Reigniting the Revolution’ strategy launched earlier this year is on track to “deliver growth in core SKUs and improved underlying profitability”.

And given expansion news in the UK, Germany and US, its ultimate target to “become a top five mass beauty brand” looks to be taking shape.

But first the numbers for the first six months ended 31 August. Group revenue declined to £72.4 million compared to £90.4 million in the year-ago period. Revo said the dip was driven by the planned simplification of the product portfolio, the discontinuation of unproductive SKUs and “significant” stock clearance activity.

Gross profit fell to £23.2 million from £44.7 million as gross margin dipped to 32% from 49.4%.

However, underlying adjusted EBITDA rose to £3.9 million from £3.3 million and there was an improvement in underlying gross profit margin of 20bps.

Elsewhere, other positives saw distribution costs cut by a third and administrative costs decreased 30% year on year, although marketing costs inched up 2% “to underpin the future growth of core products”.

It also noted there was “encouraging progress” with existing and new retailers, headlined by a new relationship agreement with German beauty retail giant DM to launch in 850 stores in January.

The company also expanded into 250 new Boots stores in the UK in October “which is already generating positive momentum”. And it has returned to growth with US retail giant Target while rival Walmart’s set to carry a full assortment of Revolution Beauty products in more than 1,800 stores from January.

Also, the launch of Amazon US first party business selling on a wholesale basis is “performing well in early months of trading”.

And so to the outlook now all this transformation’s underway. The group reiterated its guidance that sales for FY25 are expected to decline year on year at a slightly lower rate than in H1, with a return to growth in the fourth quarter “as several of the group’s new strategic growth initiatives take effect”. And this growth “is expected to accelerate through FY26”.

CEO Lauren Brindley added: “Our performance in the first half reflects the steps we have taken to position the Group for long-term, profitable growth. Since 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.”

Brinkley also talked of a “strong pipeline of growth initiatives”, including new and expanded retailer relationships, a reinvigorated pipeline of make-up innovation, the launch of its new Skincare range, and the global expansion of its budget brand, Relove. 

“As these initiatives start to take effect, we expect a return to growth in Q4 and anticipate that this will accelerate through FY26. With good momentum in the underlying business, I remain highly confident in the Reigniting the Revolution strategy and in our ability to become a top five mass beauty brand.”