Revolution Beauty’s profit before tax has increased by £45.3m in the latest financial year, having recorded what it describes as "two challenging years".

The makeup firm saw its profit before tax reach £11.4m in the 12 months to 29 February, having made a loss of £33.9m in the previous financial year.

The group’s sales also increased by 2% year-on-year to £191.3m, which it said included the impact of “significant product clearance activity” in the first half of the year.

It added that its adjusted EBITDA and gross margin, which reached £12.7m and 46.2% in the period, was a result of an improved gross margin, which reached 46.2%, controlled reductions in marketing spend, and reductions in distribution costs.

Furthermore, the group said its operating costs as a percentage of sales decreased to 39.6% from 44.4%, as Revolution began its three-year cost saving programme.

Looking ahead, the group said that it expects its revenues to decline year-on-year in the first half of the year, at a slightly higher rate than in the second half of FY24, reflecting its "more focused product portfolio and the impact of stock clearance in the first half of the year".

It added that with a reinvigorated innovation pipeline and opportunities to expand its offering and distribution, it expects to return to revenue growth in the second half of the year.

Chief executive officer at Revolution Beauty, Lauren Brindley, said: "FY24 was a year of great strategic and financial progress following two challenging years. I am extremely proud of what Team Revolution has achieved. Our new Reigniting the Revolution strategy is already delivering improvements across the business, strengthening our core and providing a much firmer platform from which to grow.

"As we progress through the new financial year, I am excited about the potential of our reinvigorated pipeline of innovation and the number of opportunities to expand our retail distribution globally. As the strategy continues to take effect, we expect to see a return to growth in the second half of the year. That will put us firmly on the right trajectory to achieving our ambition of being a top 5 player in the mass beauty market."

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