**Summary**
Revolution Beauty Group PLC, a multi-channel mass beauty innovator, released its preliminary unaudited results for the year ended February 28, 2025. The company reported a significant decline in revenue and profitability compared to the previous year, primarily due to a planned rationalization of its product and brand portfolio. Key financial highlights include
Revenue decreased by 25.5% to £142.6 million, with gross profit down 38.5% to £54.4 million.
Gross margin declined by 8 percentage points to 38.2%, impacted by clearance of non-core inventory and provision charges.
Adjusted EBITDA fell to £4.7 million, with a margin of 3.3% compared to 6.6% in the previous year.
Operating costs decreased by 23.4% to £58.1 million due to cost savings programs.
Adjusted loss before tax was £5.5 million, compared to a profit of £4.3 million in the previous year.
Operationally, the company maintained improved service levels, expanded retail distribution in key geographies, and reduced gross inventory by 41.1%. The number of social media followers grew to over 7 million.
**Strategic Changes and Future Outlook**
**Founder Return** Co-founders Tom Allsworth and Adam Minto are returning to the business, with Tom becoming CEO and Adam serving as a consultant. This move is accompanied by a proposed equity fundraise of approximately £15 million.
**Cost Reduction** The company plans to reduce its cost base, with an estimated £7.5 million in annual staff cost savings by FY27 through headcount reduction.
**Revenue Recovery** Despite a 29% decline in net sales in the first quarter of FY26, the company expects revenue decline rates to reduce significantly in the second half of the year, targeting revenues of £110-120 million.
**Extended Banking Facilities** The company has extended its revolving credit facility until July 2028, conditional on a successful fundraising, and aims to reduce net debt and provide working capital.
**Chairmans Statement**
Iain McDonald, Chairman, expressed confidence in the founder-led management teams ability to restore growth and long-term value creation. The strategy focuses on returning to Revolution Beautys original formula: fast, trend-driven innovation combined with a product-led strategy, supported by a leaner organizational structure and strengthened balance sheet.
**Conclusion**
Revolution Beauty Group PLC is undergoing a significant transformation with the return of its founders and a strategic refocus on core strengths. While facing short-term challenges, the company aims to stabilize its financial position, reduce costs, and regain growth momentum in the beauty market. The success of the equity fundraise and cost-saving measures will be critical to achieving these goals.