Revolution Beauty Share News (REVB)

(Alliance News) - Revolution Beauty Group PLC on Thursday reported a widening loss, which it attributed to previous management, as it pressed forward with a turnaround plan under its founders' return.

The London-based cosmetics retailer said pretax loss for the six months ended August 31 widened 69% to GBP18.4 million from GBP10.9 million a year ago.

Weakening the bottom line, revenue fell 32% to GBP49.4 million from GBP72.4 million. Revolution Beauty attributed this to disruption that carried over from last year's strategic and operational issues.

Loss worsened despite cost management, which included a 8.6% decrease in marketing and distribution costs. Total administrative expenses rose 8.9% to GBP15.6 million from GBP14.4 million.

Revolution Beauty added that discontinuation of certain brands and categories, "significant" distributor clearance activity, and the impact of US tariffs deepened the loss.

The company is undergoing a turnaround programme under the leadership of its founders, Chief Executive Tom Allsworth and Adam Minto in a consultancy role, who returned to the group earlier this year.

In May, Revolution appointed Iain McDonald as chair as part of its sweeping strategic review.

"Having been asked to join as chairman during the first half, it was apparent very quickly that the key to restoring the fortunes of Revolution Beauty was to bring the founders back into the business," McDonald said.

The company said it has reduced headcount by 82 since the start of March to 123 as part of the turnaround.

Pointing to the previous management for the worse-than-expected first half, Revolution Beauty said full-year sales and adjusted earnings before interest, taxes, depreciation, and amortisation will not meet previous guidance.

This was a full-year revenue in the range of GBP110 million to GBP120 million, with adjusted Ebitda of low single digit millions.

On Thursday, Revolution Beauty said it has moved back to generating positive Ebitda in the second half. It said it has sufficient cash resources and headroom to finance its organic growth plans.

"While the results for the first half are disappointing, the underlying strengths of the group - including its broad retail distribution, strong brand awareness, and engaged customer base -provide a solid foundation on which to rebuild," said Chief Executive Tom Allsworth.

"I am confident that, with renewed focus, disciplined execution, and clear accountability, the business can return to sustainable growth and profitability."

Shares in Revolution Beauty rose 1.3% to 2.47 pence on Thursday afternoon in London.

By Roya Shahidi, Alliance News reporter

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