FY25 Trading Update

Revolution Beauty Group, the multi-channel mass beauty brand, is today providing an update on trading for the year ending 28 February 2025 ("FY25").

FY25 is a transformational year for Revolution Beauty, during which it has discontinued over 6,000 unproductive SKUs - some 75% of its original portfolio - to create a scalable and profitable foundation for future growth. The Company continues to transition its global retailers onto this core set of products.

Revolution Beauty also continues to make encouraging progress expanding its relationships with existing and new retailers. However, certain retailer launches that were expected in Q4 25 will now take place in H1 26. The scale of these opportunities remains the same, and the launches into Walmart in the US and DM in Germany remain on track for February 2025.

In addition to this phasing impact, the Company experienced some sales softness in December 2024 in its digital channels and an element of de-stocking from USA retailers. As a result, the Company now expects net sales for FY25 to decline c.25% and high single digit millions underlying adjusted EBITDA supported by the continued positive delivery of our operational and cost savings programmes. The one-off stock provision for the non-strategic discontinued stock announced in the interim results remains unchanged. We continue to be in compliance with our banking covenants with sufficient liquidity headroom. Our cash balances were £6m at the end of December 2024 and net debt was £26m including a fully drawn RCF of £32m.

The Company's core SKUs continue to grow, including through channels such as Amazon, which are performing well in both the USA and Europe.

Looking ahead, Revolution Beauty is confident in a return to overall growth in FY26, as new strategic growth initiatives such as the launch of the new SKIN brand, the relaunch of our value brand RELOVE, and as the core SKU growth accelerates globally. This will be underpinned by significant margin improvements in the medium term.