Revolution Beauty has raised its full-year guidance for 2024, as the brand’s new recovery strategy has bolstered its profitability and operational performance.
The beauty brand’s board now expects revenue growth of approximately 2% for the financial year.
It also expects EBITDA of at least £12.5m, an increase from its previously estimated range of £11m and £12m.
Lauren Brindley, Group CEO, said its recent growth is being fueled by the increased focus on its masterbrand, core categories and select geographies.
“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,” she added.
Brindley said that the business is in the process of removing its lower margin products and brands from its portfolio.
While this is causing a short-term impact on sales, Brindley stated that the business is already seeing the benefits of this action to its long term profitability.
“Coupled with the group's £10m cost saving programme, which is progressing well, Revolution Beauty remains well-placed to deliver on its future growth ambitions,” the brand said.
Revolution Beauty added that its major product launches for 2024 are also “ahead of plan”, as it focuses on fewer but more “impactful” launches.
“Our focus on driving sales from our more profitable brands is starting to deliver, with double digit growth in sales of our core Revolution master brand versus the second half of FY 2023,” said Brindley.
“I remain highly confident about our growth prospects and our ability to become a top five mass beauty player.”
The updated full-year guidance comes after Revolution Beauty revealed its plans to hit £1bn in retail brand sales by 2030 through its new revival strategy.
Dubbed ‘Reigniting the Revolution’, the company said the operational changes are designed to get the business back on track after a year of legal battles and shareholder revolts.
The fast beauty retailer will focus on three core pillars to deliver “long term profitable growth”, with the aim of becoming a top five mass beauty player globally.
This includes investment into the brand’s identity and innovating in its core product categories, while also reducing its existing number of skus.