Shares in Revolution Beauty (REVB) ticked up after it recorded £78 million of revenue in the six months to 31 August 2021, representing a 35% increase from the same period in 2020.
The London-listed multi-brand mass beauty innovator, which floated on London's junior AIM market in July 2021, informed investors that following the strong 1H21 sales growth, it remains 'confident' in achieving full year market expectations.
The Company said it has ‘a number of exciting new initiatives and developments’ that are expected to continue to underpin strong revenue growth throughout 2H21.
In particular, this includes the expansion of the firm's beauty brands and categories which it said are currently accelerating fast through its Global Digital and Retail Distribution Platforms.
Today, Revolution has announced the expansion of its makeup brand, Makeup Revolution, in a move which will see it enter over 350 of the largest Boots stores in early 2022 in prominent in-store locations. In addition, new digital and retail distribution, as well as country expansions are also planned for 2H21.
During Q121, Revolution Beauty launched into 1,800 Target stores throughout the US with its Makeup Revolution brand. The Board said it expects this expansion to continue and build into an influential multi-brand and multi-category relationship with Target. It said the US remains on course to become Revolution Beauty's biggest country by revenue globally in 2021.
Elsewhere in the US, the Group has continued to see strong sales growth through its beauty chain Ulta, with the US market showing fast 'consumer bounce back' in its stores.
The Group said it also continues to make ‘good progress’ in its consumer centric DTC model after forming a partnership with THG Ingenuity which has since enabled the Group to accelerate its DTC localisation plans.
The Company launched its Revolution PLEX range on its DTC platform and through its Digital Retailers during 1H21 which is now stocked in over 250 Boots stores and over 300 Superdrug stores. To date, the Company said this has shown ‘promising’ 203% growth year-on-year.
In addition, Revolution launched its site in the US in January 2021, while it launched its site in Australia/New Zealand in March 2021. To date, it said it has seen ‘strong results’, with triple digit percentage increases in sales. In fact, in 1H21, Revolution reported over 200,000 new customers.
In its report this morning, the Company acknowledged the 'significant swings' in shopping habits and macroeconomic conditions over the last 18 months as a result of the pandemic. Despite this, the Board said it is well placed to win market share and experience significant growth and that its business model and brand strength have enabled shipping cost increases to be offset.
Currently, the Group said it is seeing sales increase as the beauty industry enters its seasonal peak trading period of September to November. The Group said the expansion of its brands, categories and trading partners is envisaged to drive growth during the latter part of 2H21.
Adam Minto, CEO and Joint Founder of Revolution, said: "It's been just over two months since we listed Revolution Beauty on the London Stock Exchange and we're pleased to have continued the strong momentum through the first half with 35% sales growth since last year.”
"We are proud to announce this strong progress for the half. As we said at IPO, the long-term growth opportunity in mass beauty remains vast with more consumers switching to online, while the market as a whole continues to grow rapidly globally,” he highlighted to investors.
He added, “Revolution Beauty is well positioned to take advantage of these trends through its innovative influencer led marketing strategies and on-trend products that deliver quality at an accessible price point. As we look ahead to the second half, we remain focused on delivering our ambition to build a new era of consumer centric beauty brands around the world. "
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On its first day of dealings back in July 2021, Revolution Beauty Group successfully executed a £300 million placing as part of its initial public offering on London’s junior AIM market.
At the time, the global mass beauty and personal-care company, which sells products that are primarily vegan (around 70%) and 100% cruelty free, placed 69.2 million new ordinary shares at a price of 160p, leaving the company with a market capitalisation of around £495m.
The Group believes its London listing will provide the business with the permanent capital needed to support its long-term growth strategy and to enhance its profile and visibility.
Since launching in 2014, Revolution has seen rapid growth with a reported CAGR of 99% from FY14 –FY19 and has generated revenues in the year to 31 December 2020 of £137.5m.
According to data reported by City A.M, Revolution Beauty, which partners with Superdrug and Boots, generated £157.6m in revenue in the fourteen months to 28 February 2021. The Group holds a retail footprint of around 11,000 doors across the UK, USA and internationally.
In a recent Q&A with Vox Markets, Revolution Beauty discussed its upcoming IPO. CEO, Adam Minto, talked through the principle behind the key USPs and a go-to market strategy.
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