The business said that adjusted earnings before income, tax, depreciations and amortisation will be ‘at least’ £12.5million in the year which ended a month ago
Struggling makeup brand Revolution Beauty has raised its forecast for the year on Wednesday, saying it’s starting to see the positives of a new plan aimed at turning the business around.
The company stated that its adjusted earnings before deductions such as income, tax, depreciations and costs a way of measuring profit without lots of expenses will be “at least” £12.5million in the year which finished a month ago. This is an improvement from what the company had previously thought; they guessed the amount would be between £11million and £12million.
Revolution Beauty also told its shareholders that they think they’ll see a 2% growth in revenue in the year up to the end of February. This follows an earlier update when it predicted the revenue growth would be in the “low single digits”.
The company has endured some tough times. Last month it reached an agreement with ex-boss Adam Minto, which will see him pay almost £3million to the company.
In 2022 the company was thrown into crisis when auditors refused to approve their accounts for the year before. Their shares were suspended from trading, and a later investigation showed that the accounts had wrongly counted £10million of sales as revenue that shouldn’t have been included.
The investigation also revealed that claims Mr Minto, and former chairperson and co-founder Tom Allsworth, had made personal loans to an employee but had not told the board about it. Revolution had said it might take Mr Minto to court, but instead reached an agreement with its former boss. He stepped down in November last year.
On Wednesday, his replacement as chief executive, Lauren Brindley, said: “It is early days, but we are already seeing positive impacts from the new strategy, including an encouraging response from our major customers and good progress on our cost savings programme.”
“Our focus on driving sales from our more profitable brands is starting to deliver, with double-digit growth in sales of our core “Revolution” masterbrand versus the second half of the 2023 financial year. Our major product launches for 2024 are ahead of plan as we focus on fewer and more impactful new products.
“We also opened our TikTok shop this week and are preparing to go live with a new direct Amazon US partnership in May 2024. I remain highly confident about our growth prospects and our ability to become a top five mass beauty player.”
