// Revolution Beauty pre-tax losses narrow to £13.4m in the six months to 31 August 2022
// The group said a surge in retail sales due to shoppers returning to the high street helped to offset losses in its digital business
Revolution Beauty’s half-year losses have more than halved, despite sales falling, as it looks to recover from an audit investigation which found several issues with its accounts.
The beauty group posted an after-tax loss of £13.4m in the six months to 31 August 2022, compared with a £28.9m loss the year before.
Half-year revenue slipped 4.2% to £75.3m over the period, after digital wholesale sales plunged 22% and web sales dropped 8% as shoppers returned to physical stores post-pandemic.
However, the sharp decline was offset by a 21% surge in UK retail sales, “helped by new distribution in Boots and good performance across Superdrug stores”.
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Chief executive Bob Holt said: “Overall, performance was resilient in the first half of FY23 financial year, and the group narrowed previous losses, and saw significant margin expansion.
“The half was one where our digital business was impacted by consumers moving back to bricks-and-mortar retail stores post-pandemic, but where Revolution’s omni-channel retail strategy mitigated the decline, with solid retail performances in our key markets.”
The retailer expects single digit sales growth in the current year.
Last week, co-founder Tom Allsworth stepped down from his role as non-executive chairmen after the group posted its delayed 2022 financial results that were ‘significantly below’ forecasts.
The group, whose shares have been suspended since September, was forced to delay its results due to an audit probe which revealed it had inflated sales by £9m to meet annual targets and undisclosed personal loans had been handed out.
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