Revolution Beauty Group (AIM:REVB) swung to an adjusted EBITDA profit of £2m in the six months to 31 August, a £14.5m improvement on the £12.5m loss recorded in the same period last year.
The AIM-listed mass-market beauty brand, which sells cosmetics and skincare through e-commerce platforms and major retail partners in the UK, US and internationally, reported revenue of £48.4m for the half, down 2.0% from £49.4m a year earlier.
Management said the prior-year figure was flattered by clearance sales, discontinued brands and non-recurring licence income, and that underlying revenue grew 8.3% once those factors are stripped out.
Gross margin rose 11.4 percentage points to 43.6%, reflecting the absence of last year's clearance activity and improved range and inventory management, while operating costs fell almost a third, or £9.3m, to £19.1m.
The group's operating loss narrowed to £0.9m from £16.7m, and its pre-tax loss reduced to £1.9m from £18.4m.
Online sales rose 22%, which the company attributed to growing consumer engagement including growth on TikTok Shop.
Cash stood at £4.3m at period end, up from £1.8m a year earlier, while net debt fell to £25.7m from £30.2m over the same period, broadly stable against the £24.7m reported at the last financial year-end despite a seasonal working-capital build.
Revolution Beauty has now delivered positive adjusted EBITDA in every month for thirteen consecutive months to 30 September, and said trading in September and October has been in line with the board's expectations.
"When Adam and I came back to the business, we set out to get Revolution doing what it does best, bold, on-trend, affordable beauty, brought to market quickly, on a platform that is profitable and properly controlled," said chief executive Tom Allsworth.
This marks the first half-year period reported in full under the returning management team, which has focused on SKU rationalisation, tighter stock management and cost discipline since taking charge; the group delivered over £9m of annualised cost savings in the last financial year that are now fully embedded.
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The company also pointed to a new licensing partnership with Debenhams Group, announced in June, covering fragrance and gifting under the PrettyLittleThing, Karen Millen and boohooMAN brands, with first collections launching ahead of Christmas.
The board said the group is trading at the top end of the current range of market expectations for the full year, which were upgraded following a trading update on 17 September, citing current analyst forecasts of revenue between £92m and £95m and adjusted EBITDA between £6m and £6.6m for the year ending 28 February 2027.
Chairman Iain McDonald said the board's first priority, putting the business on a disciplined footing, had been achieved, with focus now turning to growth.
