Warpaint London Plc · LSE:W7L
Warpaint London — FY2024 Earnings Presentation
32 slides from Warpaint London's earnings presentation, Apr 29, 2025
Slide 1: Warpaint London FY 2024 Results
Warpaint London FY 2024 Results 29 April 2025
Slide 2: Disclaimer
Disclaimer The information contained in these slides (the "Presentation") is being provided to you for States of America (or any of its territories or possessions) (together, the "US"), Canada, general information purposes and does not purport to contain all information that may be Japan, Australia,
Slide 3: Presenters
Presenters Sam Bazini Chief Executive Officer Eoin Macleod Managing Director Neil Rodol Chief Financial Officer 3 2024 Full Year Results presentation Presentation
Slide 4: About Warpaint
About Warpaint Warpaint sells high quality, branded, affordable cosmetics, 1 health/beauty and personal care products mostly through large retailers in Europe, UK, US and globally Efficiently managed by a team of 183 based in UK, US, China 2 and Hong Kong Outsource manufacturing to c.25 factories to
Slide 5: 2024 Financial Highlights
2024 Financial Highlights Another record performance Gross profit Revenue margin £101.6m 41.2% PBT Cash (no debt) £23.8m £21.9m* Proposed final dividend 7.5p; total for 2024: 11.0p (2023: 9.0p) * Includes £14.0 million held in escrow to fund the Brand Architekts Group plc consideration paid post yea
Slide 6: 2024 Operational highlights
2024 Operational highlights • Strong revenue growth in all key geographies UK up 8%, Europe up 22% and US up 22%* • Growing sales across brands W7 brand sales up 14%, Technic brand sales up 8% • Further customer expansion Launches into Morrisons, Walmart Expansion in Boots, ETOS, Five Below, Normal,
Slide 7: Financial Review
Financial Review
Slide 8: FY24: Strong financial performance across all metrics
FY24: Strong financial performance across all metrics History of progressing dividends 7.5p final dividend Operating Profit Adj. EBITDA EPS Cash** (FY 23: £m % p £m 6.5p) 12 30% 19% 30% £12.8m 10 11.0p 8 9.0p 7.1p 6 5.8p 6.0p 4 2 18.1 0 18.5 24.0 21.0 25.0 23.5 21.9 9.1 2020 2021 2022 2023 2024 2023
Slide 9: Improving gross margin; Leverage of administrative expenses vs revenue
Improving gross margin; Leverage of administrative expenses vs revenue 45% 4 years 40% +1010 bps 35% Percentage of revenue 30% 25% 4 years 20% -600 15% bps 10% 5% 0% 2020 2021 2022 2023 2024 Gross margin Adj. Administrative expenses* * Administrative expenses are adjusted for fx gains/losses, share-
Slide 10: Markets and Strategy
Markets and Strategy
Slide 11: A strong value proposition
V V A strong value proposition Lip Culture Satin Lipstick V W7 branded products vs premium products £4.50 Absolute Lashes Mascara Socialite Eye Palette £5.00 £10.50 Huda Beauty Charlotte Tilbury VV V Nude Eye Palette £62 Matte Revolution £29 Sweet Dreams Honolulu Matte Benefit Overnight lip mask Gol
Slide 12: A winning strategy to continue delivering growth
A winning strategy to continue delivering growth DEVELOP AND BUILD DEVELOP AND GROW UK GROW US/CHINA GROW ONLINE IMPROVE CORE BRANDS AND NURTURE MARKET SHARE MARKET SHARE SALES ENVIRONMENTAL ENSURE NPD CURRENT BUSINESS PROFITABLY PERFORMANCE AND REFLECTS SUSTAINABILITY TRENDS AND CONSUMER NEEDS 12 2
Slide 13: Develop and build core brands; ensure NPD reflects trends and consumer needs
Develop and build core brands; ensure NPD reflects trends and consumer needs 69% 31% Percentages shown are of Group 2024 own brand revenue, which represented 94% of total revenue. 13 2024 Full Year Results presentation Presentation
Slide 14: Develop and nurture current business
Develop and nurture current business 14 2024 Full Year Results Presentation
Slide 15: Grow UK market share
Grow UK market share UK cosmetic sales by channel Full price 75% Discounters 25% 15 2024 Full Year Results Presentation
Slide 16: Grow US/China market share
Grow US/China market share Tmall, Xiaohongshu (‘Little Red Book’ “Red”), 16 2024 Full Year Results Presentation
Slide 17: Grow online sales profitably
Grow online sales profitably £m Direct online sales Similar net profit 9 margin 8 7 1 % 6 1 1 G R CA 5 4 3 2 1 0 2019 2020 2021 2022 2023 2024 17 2024 Full Year Results Presentation
Slide 18: Improve environmental performance and sustainability
Improve environmental performance and sustainability PLANET PRODUCTS PEOPLE PERFORMANCE GOVERNANACE Climate change is one of Our suppliers provide We have a diverse and loyal Our progress against Warpaint is dedicated to the greatest challenges of “Good Manufacturing workforce with equality of defin
Slide 19: We have substantial growth opportunities with existing key customers
We have substantial growth opportunities with existing key customers Warpaint has a strong track record of winning and expanding within large retail customers “Since launch, Key 20 Key 9 Key 10 W7 has rapidly customers customers customers become the Current 6,500 Current 6,500 Current 3,200 most pop
Slide 20: Acquisition of Brand Architekts expected to bolster growth
Acquisition of Brand Architekts expected to bolster growth 20 2024 Full Year Results presentation Presentation
Slide 21: Brand Architekts – streamline to secure the future
Brand Architekts – streamline to secure the future Scale, strength and brand offering can drive enhanced returns over time Cost savings Growth drivers Enhanced returns Eliminate plc costs Opportunity to Improve gross Reduce HQ costs cross sell into UK margin through and internationally better sourci
Slide 22: Q1 Trading update and Summary
Q1 Trading update and Summary
Slide 23: Q1 2025 trading update
Q1 2025 trading update • Solid start to trading in Q1 2025, with unaudited Group sales for the three months to 31 March 2025 up 14% to £26.7 million (Q1 2024: £23.5 million). Excluding the contribution from Brand Architekts (from 12 February 2025), Group sales were up 7% • Margins in Q1 increased an
Slide 24: Summary
Summary Record sales and profit performance Focused strategy to deliver further significant profitable growth Continued expansion with existing Further major expansion in Boots, customers through H1 2025 CVS and Superdrug Profitable Ecommerce revenues Continued efforts to grow online continue to gro
Slide 25: Q&A
Q&A
Slide 26: Appendix
Appendix
Slide 27: Consolidated Income Statement
Consolidated Income Statement Year ended Year ended 31-Dec-24 31-Dec-23 £’000 £’000 Revenue 101,607 89,590 Gross profit 41,868 35,733 Gross Margin 41.2% 39.9% Administrative expenses (17,882) (17,252) Adjusted profits from operations 24,779 18,802 Amortisation (26) (187) Net finance expenses (225) (
Slide 28: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 31-Dec-24 31-Dec-23 £’000 £’000 Goodwill 7,274 7,274 Acquisition of Retra and LMS Intangible assets 90 93 Property, plant and equipment/Right-of-use assets 6,600 6,525 IFRS 16 Leases £4.1m Inventories 31,192 27,963 Trade and other receivables 16,336 13,52
Slide 29: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Year ended Year ended 31-Dec-24 31-Dec-23 £’000 £’000 Adjusted profit 26,995 20,615 Movement in inventories (3,229) (9,248) Movement in trade and other receivables (2,807) (1,836) Movement in trade and other payables (1,943) 3,588 Fair value (gain)/loss on deriva
Slide 30: Cash Flow bridge
Cash Flow bridge Of which £3.1m was a one-off accelerated £m amount of CT paid on account due to a 40 change in collection policy by HMRC, 35 impacting H1 2024 27.0 only 30 15.2 25 (9.8) 20 (7.4) 21.9 (8.3) (0.4) 15 (2.2) (1.3) 10 9.1 5 0 Net cash Adj. Profit Working Tax and interest Acquisition Cap
Slide 31: Positive fundamental market dynamics
Positive fundamental market dynamics £1.8bn 2/3 79% 67% Women use colour Think the price of a Think affordable brands Colour Cosmetics cosmetics daily or a few product is an important perform as well as Market times a week selection criteria prestige brands £18bn 2/3 68% 74% Source: Mintel – Colour
Slide 32: Company history and key milestones
Company history and key milestones Warpaint has grown sustainably for more than three decades with a proven ability to innovate and win new business ü Fast-to-market Acquired Retra Launched in CVS Launched in and Boots. Walmart NPD W7 brand Export sales W7 sales Holdings Started launched reach £1m r