Revolution Beauty Group Plc · LSE:REVB
Revolution Beauty — FY2024 Earnings Presentation
24 slides from Revolution Beauty's earnings presentation, Jun 26, 2024
Slide 1: Revolution Beauty
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Slide 2: Financial Results for the year ended 29 February 2024
FINANCIAL RESULTS For the year ended 29 February 2024 Lauren Brindley Group Chief Executive Officer Neil Catto Chief Financial Officer Wednesday 26 June 2024 2
Slide 3: Introduction
INTRODUCTION Lauren Brindley CEO 3 3
Slide 4: FY 2024 - Highlights
FY 2024 - HIGHLIGHTS • Strengthened leadership team in place • Return to profitability in FY24 reflecting increased rigour • New strategy introduced to capture significant market opportunity • Already delivering early progress in optimising brand portfolio, powering up the core and focused global gr
Slide 5: Financial Review
FINANCIAL REVIEW Neil Catto CFO 5 5
Slide 6: FY 2024 Financial Highlights
FY 2024 FINANCIAL HIGHLIGHTS £191.3m £88.4m 46.2%% £12.6m +2% +16% +5.8ppts +£20.0m Revenue 8% Gross profit Gross margin Adjusted EBITDA £7.4m £11.4m £8.6m £23.1 +£30.8m +£45.3m -£2.4m -£2.4m Adjusted EBIT Profit before tax Cash Net debt 6 6
Slide 7: Continued Growth in FY24
CONTINUED GROWTH IN FY24 Growth in retail distribution offset decline in digital YoY £M FY24 mix FY23 % mix change By channel: ▪ Growth in global retail distribution has offset declines Digital 42.3 22% 51.0 27% -17% in digital sales ▪ UK, US and e-commerce Stores 149.0 78% 136.8 73% 9% markets have
Slide 8: Return to Profitability
RETURN TO PROFITABILITY FY EBITDA and adjusted profit before tax ahead of original expectations £M FY24 FY23 Change ▪ Improved gross margin as excess inventory reduced and due to clearance Total revenue 191.3 187.8 2% of old inventory Cost of sales 102.9 112.0 -8% ▪ Operational efficiencies Gross pr
Slide 9: Strong EBITDA Performance Driven by Improved Stock Turn, Inventory Clearance and Tight Cost Control
STRONG EBITDA PERFORMANCE DRIVEN BY IMPROVED STOCK TURN, INVENTORY CLEARANCE AND TIGHT COST CONTROL £m 9 9
Slide 10: Cash Flow Summary
CASH FLOW SUMMARY £8.6m cash and net debt contained at £23m despite exceptional cash costs of £4.7m £m 10 10
Slide 11: Fuelling Growth
FUELLING GROWTH INVESTMENTS PROFITABLE TO FUEL GROWTH OPERATING MODEL ▪ Brand marketing ▪ Organic growth BALANCE SHEET AND CASH EFFICIENCY ▪ Innovation ▪ NPD launches ▪ International expansion COST SAVINGS PROGRAMMES ▪ Stands to support organic growth 11 11
Slide 12: £10m Cost Saving Programmes
COST SAVING PROGRAMMES £10m of cost savings will underpin future growth COST OF SALES OPERATIONAL COSTS £10M Product value engineering D2C cost base Strategic sourcing Improved demand planning ON TRACK SAVINGS ON TRACK ADMIN COSTS Reduced professional fees Over the next MARKETING COSTS Marketing
Slide 13: Well-Positioned to Deliver Growth from Masterbrand and Core Categories
WELL-POSITIONED TO DELIVER GROWTH FROM MASTERBRAND AND CORE CATEGORIES All figures in £M £m 13 13
Slide 14: FY 2025 - Outlook
FY 2025 - OUTLOOK The Future Is Bright • First half revenues to decline year-on-year at a slightly higher rate than in the second half of FY24, reflecting a more focused product portfolio and the impact of stock clearance in the first half of FY24. • Return to revenue growth in the second half, with
Slide 15: An Update on Strategic Progress
AN UPDATE ON STRATEGIC PROGRESS Lauren Brindley CEO 15 15
Slide 16: We Are Reigniting the Revolution
WE ARE REIGNITING THE REVOLUTION 16 16
Slide 17: A Reminder of Our Strategy
A REMINDER OF OUR STRATEGY. To revolutionise beauty for everyone and every ‘you’, Vision and become a Top 5 mass beauty player* by 2030 With our community, we champion real beauty & Mission positive change for everyone Growth Strategic The Masterbrand. Powering The Core. Focussed Global growth. Prio
Slide 18: Major Strategic Transformation to Enable Business to Grow Profitably & Sustainably
Driving the MAJOR STRATEGIC TRANSFORMATION Masterbrand TO ENABLE BUSINESS TO GROW PROFITABLY & SUSTAINABLY • Major rationalisation of the tail of un-profitable brands (7 to 3 brands) and SKUs by 25% • Major reduction in stock holding from £100m to £48.5m Image of new colour campaign • Improved servi
Slide 19: The Long-Term Opportunity
THE LONG-TERM OPPORTUNITY The building blocks to reach £1bn are clear 19 19
Slide 20: Our Strategy in Action
Driving the OUR STRATEGY IN ACTION Masterbrand • New innovation including Skin Silk has landed well, especially in the US market • New Revolution Beauty Masterbrand merchandising stand launching in July in Australia • Amazon 1P launched on 27 May 2024 • Tik Tok UK shop launched in May and US launchi
Slide 21: Powered by Our Core Enablers
POWERED BY OUR CORE ENABLERS Major changes have already been made, setting us up for success in FY25 and beyond 01 02 03 04 New leadership Significant Optimised Tight grip team improvements stock position on internal in servicing processes A stronger platform from which to deliver sustainable profit
Slide 22: Summary
▪ FY 2024 performance reflects major strategic shift ▪ Return to profitability is the result of greater rigour ▪ While we are at early-stage, SUMMARY beginning to see strategy deliver ▪ Reinvigorated innovation pipeline to benefit H2 growth ▪ Confident we can deliver on our goal of becoming a top fi
Slide 23: Thank You
THANK YOU 23 23
Slide 24: Revolution Beauty London
REVOLUTION BEAUTY LONDON
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