Adore Beauty (ASX:ABY) marks record gains, beats prospectus forecast

  • February 23, 2021 04:31 PM AEDT
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Online beauty products retailer Adore Beauty Group Limited (ASX:ABY) revealed the half yearly results for the period ended 31 December 2020. 

Key highlights of the announcement:

  • Revenue stood at $96.2 million, 8% higher than what the prospectus had forecasted. Robust customer growth and persistent high customer retention were key factors for driving the same.
  • The epic trading days like Afterpay Day in August and Cyber Weekend in November contributed to the remarkable half year.
  • Active customers rose to 777,000 which is 7% more than what the prospectus had predicted.
  • Gross profit margin of 32.5% was higher 1.4 percentage points on PCP, triggered by product margin growth.
  • EBITDA of $5.2 million was registered, 58% ahead of prospectus prediction of $3.3 million.
  • The Company recorded $25.9 million cash as on December 31, without any debt.
  • Brand awareness soared by 33% to 52% propelled by extended national TV campaigns.
  • Robust advancement on strategic roads such as launching mobile app, promoting private label accessories and getting 33 new brands on board.

The release mentioned that there will be a permanent structural shift to online and there will be a raised importance on premium beauty brands. Also, there will be a focus on global beauty trends and skin care.

Tennealle O’Shannessy, Adore Beauty CEO shared that the strong performance during this half is bolstered by elevated heights of customer commitment, retention and satisfaction. She also shared that the Company is thrilled to welcome new customers in past six months.

Meanwhile, the ABY stock was spotted trading at $5.510 with market capitalisation at $536.50 million at market close on 23 February 2021.