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Highlights
REVB's FY25 revenue declined 25.5% to £142.6 million, with gross margin reduced to 38.2%.
Tom Allsworth to return as CEO, alongside £15 million equity fundraising and extended banking facilities.
Strategic plan targets adjusted EBITDA of £8–10 million by end of FY26, supported by cost savings and product-led growth initiatives.
Revolution Beauty Group plc (AIM:REVB), a mass beauty innovator with multi-channel operations, has released its unaudited financial results for the year ended 28 February 2025 (“FY25”). The Company also announced significant management changes, alongside an equity fundraising initiative and a revised strategic plan to drive growth.
Financial Performance
Revenue for FY25 declined 25.5% year-on-year to £142.6 million, reflecting the planned rationalisation of its product and brand portfolio. Gross margin fell to 38.2% (FY24: 46.2%), impacted by the clearance of non-core inventory, with related losses and provision charges amounting to £8.4 million. Excluding these charges, gross margin stood at 44.0%.
Adjusted EBITDA was £4.7 million, representing 3.3% of sales, compared with 6.6% in the prior year. Adjusted loss before tax was £5.5 million, against a £4.3 million profit in FY24. Despite reduced profitability, operating costs decreased to £58.1 million from £75.8 million, demonstrating ongoing cost discipline. Net debt was contained at £26.2 million, after adjusting cash costs of £2.1 million.
Operational and Commercial Progress
During FY25, the Company maintained improved service levels and expanded retail distribution in select geographies, securing key customer wins and increased shelf space. Gross inventory was reduced by 41.1% to £33.1 million, while net inventory declined 53% to £21.4 million. Revolution Beauty also increased its digital engagement, with social media followers growing from 6.4 million to over 7.0 million.
Leadership and Strategic Outlook
Revolution Beauty announced the return of co-founder Tom Allsworth as Chief Executive Officer, subject to shareholder approval of a proposed equity fundraising. Interim CEO Colin Henry will step down, though he will remain available during his notice period. Co-founder Adam Minto will also re-join the business in a consultancy role.
The Company is seeking to raise approximately £15 million through an accelerated bookbuild. Proceeds will be used to reduce net debt and provide working capital to support a re-balanced growth plan. Additionally, the Company has agreed to extend its revolving credit facility until July 2028, conditional on the fundraising.
Looking ahead, Revolution Beauty reported that sales in the first quarter of FY26 declined 29% year-on-year, largely due to the absence of discontinued products and ongoing clearance activity. Revenue for the second quarter of FY26 is expected to fall by around 25% compared to the prior year. However, the Company anticipates year-on-year decline rates to ease in the second half, supported by measures such as the reintroduction of profitable stock keeping units, the re-launch of its Relove brand, expansion of online and discount outlet channels.
The revised plan aims to deliver adjusted EBITDA of between £8 million and £10 million by the end of FY26, supported by £7.5 million of anticipated annual staff cost savings by FY27.
