Revolution Beauty has reported a dip in sales as its business simplification strategy steps up a gear.
The mass beauty brand’s total net sales for the first half of fiscal 2025 (ended 31 August) declined 20% to £72m.
According to the London-listed company, this was driven by planned streamlining of its product portfolio and the associated discontinuation of unproductive skus.
Net sales from Revolution Beauty’s core product range, however, grew 6% during the period, with growth accelerating to 16% in the second quarter versus the prior year.
This streamlining falls under the brand’s previously-announced Reigniting the Revolution strategy, which also includes encouraging progress with existing and new retailers for Revolution Beauty.
Underlying adjusted EBITDA for the period was £3.1m, down from £3.5m in H1 2023.
“In the last six months, we have made great progress in our Reigniting the Revolution strategy,” commented Lauren Brindley, Revolution Beauty’s CEO.
“We have reduced our sku portfolio significantly, enabling improved underlying gross margin performance, on a core set of skus that are growing globally.
“This year is a transformational year for the company, as we focus on simplifying the business, improving our operational efficiency and positioning ourselves for profitable and sustained success.”
Brindley added that Revolution Beauty expects a return to growth in the fourth quarter of the 2025 financial year, as the company rolls-out new growth initiatives.
These include a “reinvigorated” pipeline of make-up innovation, the launch of a new skin care range and the global expansion of budget brand, Relove.
“I remain highly confident that our Reigniting the Revolution strategy will deliver attractive, long-term, profitable growth,” she said.
The results update follows news that Revolution Beauty has entered into a manufacturing agreement with beauty brands Carbon Theory and Delhicious, in which former founder and CEO Adam Minto is a stakeholder.
Subsidiary Revolution Labs will create and supply beauty and personal care products for both brands.
The manufacturing deal is expected to generate revenues and profits of £530,000 and £50,000 respectively.