Adore Beauty Shares Jump 4% on FY25 First-Half Update, EBITDA Jumps 94%

2 min read | January 29, 2025 01:02 PM AEDT | By Team Kalkine Media

Adore Beauty Shares Jump 4% on FY25 First-Half Update, EBITDA Jumps 94% — Image source: shutterstock

Resilient Revenue and Record Margins

Adore Beauty reported $103 million in revenue for the six months ending 31 December 2024, reflecting a 2.3% year-on-year increase. While the broader retail sector faces economic headwinds, Adore Beauty managed to boost profitability, with its gross profit margin reaching a record 35.9%—a 2.4 percentage point improvement from FY24.

This margin expansion, coupled with cost efficiencies, propelled EBITDA up 94% to $4.6 million, while EBIT surged 118% to $2.7 million. The company also closed the year with a solid cash balance of $11.7 million, reinforcing its financial stability.

Strategic Execution Fuels Growth

The company attributed its profit surge to key initiatives in its three-year strategy, which focuses on:

Disciplined promotional events to drive higher-margin sales.
Expanding its owned brands to improve profitability.
Leveraging retail media for additional revenue.
Cost and working capital efficiencies to sustain growth.

Physical Store Expansion Underway

A major highlight of Adore Beauty’s update was its retail expansion plan. The company will open its first physical store at Westfield Southland in Victoria on 1 February, followed by a second location at Watergardens in early March.

Additionally, Adore Beauty will launch new iKOU-branded stores in Berry (NSW) and Melbourne CBD (Victoria) in March, as part of its push to expand its owned brands. The company plans to open 4–6 new stores in 2025, marking a significant shift from its online-only model.

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