How are Adore’s (ASX:ABY) shares faring post AGM update?

November 14, 2022 04:06 PM AEDT | By Tamnna

How are Adore’s (ASX:ABY) shares faring post AGM update? — Image source: © Everydayplus | Megapixl.com

What did AGM 2022 unfold for Adore?

Adore Beauty, Australia’s one of the first beauty-focused e-commerce brands, released the company’s FY22 financial results via its AGM on 14 November; the following are the key takeaways:

The company made revenue of AU$200 million for FY22, which is 11% higher over the previous comparable period (pcp) and 28% on a 2-year compound annual growth rate (CAGR).
The gross profit margin of Adore was 33.3% in 2022.
Adore Beauty generated an EBITDA of AU$5.3 million in 2022, which was 30% lesser than FY21 but 4% higher on a 2-year CAGR.
Adore was able to maintain its EBITDA margin FY22 guidance of 2.7%, as per the AGM.
The company had AU$29.8 million cash in hand for the year ended on 30 June 2022, up 2.6% from FY21.
The number of active customers increased to 872k during FY22, resulting in a 7% improvement on pcp and 22% on a 2-year CAGR.
The number of returning customers saw a whopping 115% increase compared to FY20 and a 31% increase from FY21.

In a statement during the AGM presentation, Tennealle O’Shannessy, CEO of Adore Beauty, said:

Data Source: Company announcement dated 14 November 2022

A glance at Adore’s FY23 update and outlook

Adore generated revenue of AU$45.4 million during Q1 FY23; this was 29% lower than Q1 FY21 due to COVID-19 lockdowns.
The company reported an increase in revenue for the two most recent quarters of FY23.
The number of returning customers increased by 14% on pcp and by 85% on a 2-year CAGR in Q1 FY23.
During Q1 FY23, Adore’s active customers number was 791k, up 12% on a 2-year CAGR but down 9% on pcp.
The company reaffirmed its guidance that it will continue to be profitable on a yearly basis in FY23 and achieve an EBITDA margin of 2.4% in FY24, as stated in the official ASX report.
Lastly, Adore Beauty wants to take its EBITDA margin to 8-10% in FY27, and its longer-term target is to reach the 10% milestone.

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