Revolution Beauty shares surge on EBITDA turnaround guidance

Revolution Beauty shares rose approximately 12% following news that the cosmetics group is nearing a return to profitability. The company expects first-half EBITDA to reach between £1 million and £2 million, a significant recovery compared to the £12.5 million loss reported during the same period last year.

While overall revenues remained broadly flat, the company reported a 22% increase in online sales. Management attributed the improved performance to stronger gross margins resulting from cost-cutting measures and a reduction in heavy clearance sales. The group noted that its cost discipline has allowed it to demonstrate EBITDA profitability in every month for the past year.

The turnaround follows a period of instability for the brand, which included an accounting scandal and leadership changes in 2023. The company has since undergone a reset, including the return of co-founders Adam Minto and Tom Allsworth. Additionally, a licensing partnership with Debenhams Group, which holds over a quarter of the company's shares, is expected to support product distribution.