Revolution Beauty has posted a drop in sales and half-year profits amid what it labelled a “transformational” year for the business.
The cosmetics retailer reported underlying adjusted EBITDA had fallen 11% to £3.1m, down from £3.5m last year.
Total net sales plunged 20% to £72m, which it attributed to “the planned simplification of the product portfolio and the associated discontinuation of unproductive SKUs”.
However, sales from its core range was up 6% year on year over the first half and 16% in the second quarter alone.
Revolution Beauty is expanding its partnership with Boots this month to include 250 new stores across the UK.
It will also strengthen its distribution with Boots owner, US giant Walmart, in January and will launch an Amazon shop in the country.
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Revolution Beauty expects its full-year sales to decline at a slightly lower rate than in the first half and forecasts a return to growth in the final quarter as its new strategic growth initiatives take effect.
Revolution Beauty chief executive Lauren Brindley said: “In the last six months, we have made great progress in our Reigniting the Revolution strategy.
“We have reduced our SKU portfolio significantly, enabling improved underlying gross margin performance, on a core set of SKUs that are growing globally.
“This year is a transformational year for the company, as we focus on simplifying the business, improving our operational efficiency and positioning ourselves for profitable and sustained success.
“We expect a return to growth in Q4, as we begin landing our new growth initiatives, including a reinvigorated pipeline of make-up innovation, the launch of our new Skincare range and the global expansion of our budget brand, Relove.
“I remain highly confident that our Reigniting the Revolution strategy will deliver attractive, long-term, profitable growth.”
The group launched new strategy back in February following a turbulent year where it was shrouded by legal battles and shareholder revolts after an accounting scandal led to its suspension on the London Stock Exchange.
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