Revolution Beauty Group Plc · LSE:REVB
Revolution Beauty — H1 FY2024 Earnings Presentation
22 slides from Revolution Beauty's earnings presentation, Nov 14, 2023
Slide 1: Revolution
REVOLUTION
Slide 2: Half Year Results FY24
HALF YEAR RESULTS FY24 For the six months ended August 31 2023 Lauren Brindley Group Chief Executive Officer Elizabeth Lake Chief Financial Officer 14.11.2023 2
Slide 3: Agenda
AGENDA 01 INTRODUCTION 02 HY 2024 FINANCIAL PERFORMANCE 03 POSITIONING FOR PROFITABLE GROWTH 3
Slide 4: Introduction
INTRODUCTION LAUREN BRINDLEY Chief Executive Officer 4
Slide 5: My Experience
MY EXPERIENCE • Beauty: 20 years’ industry experience • International: Across three continents • Retail & Brand: Tesco, Walgreens and Boots • Growth: Driven market share gains • Colleagues: Built market-leading teams 5 5
Slide 6: Revolution Beauty - A Unique Brand
REVOLUTION BEAUTY - A UNIQUE BRAND CREATIVE, UNIQUE & INNOVATIVE & DYNAMIC FAST-PACED INCLUSIVE BUSINESS PRODUCTS DEDICATED & DIVERSE TEAM 6
Slide 7: Operational Highlights
OPERATIONAL HIGHLIGHTS • Strengthened & refreshed Board and management team • Continued international growth • Leveraging strength of Revolution brand • Expansion of existing relationships • New relationship with US retailer • Focused on distinctive social media presence • 6% increase in global soci
Slide 8: Financial Review
FINANCIAL REVIEW ELIZABETH LAKE Chief Financial Officer 8 8
Slide 9: Financial Highlights
FINANCIAL HIGHLIGHTS £ Revenue Gross Profit Gross Margin Adjusted EBITDA* £90.4m £44.7m 49.4% £6.4m +20.0% +43.3% +8% pts +£14.3m Operating Loss Profit Before Tax Cash Net debt £(0.5)m £0.4m £8.0m £(23.8)m +£12.0m +£14.1m -£3.8m -£7.9m *Adjusted EBITDA is an alternative performance measure used by m
Slide 10: Broad Based Revenue Growth
BROAD BASED REVENUE GROWTH UNDERPINNED BY VOLUME GROWTH ACROSS CATEGORIES, PRODUCTS & MARKETS .0 S L 2 3 OR NA IL AI L IL R 2 4 H1 UT O TI E T A T TA HE H1 B NA R RE RE OT RI US UK ST ER DI IN T 10 10
Slide 11: Strong Sales & Profit Recovery
STRONG SALES & PROFIT RECOVERY 6 months to end of August £’M H1 2024 H1 2023 Variance Sales 90.4 75.3 20% Gross Profit 44.7 31.2 43% Gross Profit % 49% 41% 8.0% Distribution costs 13.8 14.9 (7%) Marketing 9.0 12.1 (26%) Other Overheads 22.3 16.7 34% Total Costs 45.1 43.6 3% Adj EBITDA 6.4 (7.9) 181%
Slide 12: Strong EBITDA Growth
STRONG EBITDA GROWTH DRIVEN BY HIGHER SALES AND TIGHTER COST CONTROL (2.3) (0.9) (7.9) 3 LE S HT K CT NG GN S 2 IG OCON RESES T I RE EI GE AD 2 4 H1 SA E T S IS I I D N E K TO R N E H1 FR AR N S FO HA RH OV XPE M I C E PR E + E X OV 12 12
Slide 13: Robust Cash Generation
ROBUST CASH GENERATION IMPACTED BY EXCEPTIONAL COSTS AND WORKING CAPITAL OUTFLOW (2.8) (4.0) (1.0) (1.2) (1.1) I NG D ALS NG X T AS E FX I NG EN TE A ON T KI TAL PE ES LE OS US ITD TI OS OR PI CA ER CL OP J B P C W CA T AD E CE I N EX 13 13
Slide 14: Summary Balance Sheet
SUMMARY BALANCE SHEET Summary Balance Sheet £m Aug-23 Feb-23 Aug-22 Non-current assets 14.0 16.0 26.1 • £12.3m cash balance 10 Current assets excluding cash 90.1 104.4 108.3 November 2023, current Cash & cash equivalents 8.0 11.0 11.8 net debt £19.6m Current Assets 98.1 115.4 120.1 • Borrowings cons
Slide 15: Positioning for Profitable Growth
POSITIONING FOR PROFITABLE GROWTH LAUREN BRINDLEY Chief Executive Officer 15
Slide 16: Revolution
REVOLUTION
Slide 17: A Strong, Dynamic & Social Brand
A STRONG, DYNAMIC & SOCIAL BRAND 200%+ +27% 1.98m 5 year growth of Global social media D2C contactable Revolution masterbrand engagement rate database 17 17
Slide 18: Balanced Platform for Global Growth
BALANCED PLATFORM FOR GLOBAL GROWTH 80% 20% USA Retail Sales Digital Sales c.17.5k ROW 39% 26% Global footprint UK An omnichannel business Total stores worldwide 35% 18
Slide 19: That Has Been Held Back By...
THAT HAS BEEN HELD BACK BY… Product Operating Role Legacy Cash Proliferation Model Accountabilities Outflows 19 19
Slide 20: ...And Action Is Already Being Taken
…AND ACTION IS ALREADY BEING TAKEN Product Operating Role Legacy Cash Proliferation Model Accountabilities Outflows • Reduced ongoing • Hired new COO to • Establishing new • Ongoing focus on active sku count by manage end-to-end Executive Team with cost saving 50% supply chain clear accountabilities
Slide 21: Outlook & Summary
OUTLOOK & SUMMARY • Made a good start to the second half of FY24, with revenue and adjusted EBITDA in line with internal forecast • Upgraded guidance for the full year, with adjusted EBITDA to be not less than double-digit millions for FY 24 • Capital Markets Event in January 2024 to update on new s
Slide 22: Thank You
THANK YOU REVOLUTION BEAUTY GROUP PLC
Revolution Beauty Group — H1 FY2024 Earnings Presentation on 6ix