Revolution Beauty saw profits fall as it grappled with “significant challenges” over the half-year period.

Gross profit fell from £23m to £16m for the six months to 31 August.

Adjusted EBITDA plummeted 98% to a £13m loss over the period, which it said was impacted by space and brand changes in certain retailers and the impact of new tariffs in the US.

Revenue declined 32% to £49m during the half, primarily driven by disruption carried over from prior-year strategic and operational issues.

Operating costs for the retailer dropped 3.7% to £28m over the period. 

Revolution acknowledged that its performance under its previous management for its first half was “worse than expected” and that its full year sales and adjusted EBITDA would “not match the guidance given on 22nd August”.

However, it said that it had completed a successful refinancing and equity raise, “strengthening its balance sheet and restoring financial stability”.

The brand highlighted that it announced the proposed return of its founders to the business in August, which was a “key aspect of the success” of its debt and equity refinancing.

Revolution Beauty group CEO Tom Allsworth said: “Although I was not part of the business during the six-month reporting period, it is clear that the group faced a number of significant challenges. 

“I recognise the impact this has had on our people, our partners and our performance. However, with the actions taken since the period end, we have laid the foundations for a more disciplined, focused and resilient business.

“I would like to thank all our team for their patience, professionalism and commitment throughout this period of transition. 

“Their dedication has been essential in stabilising the business and positioning us for the next phase of growth, and I am pleased that we moved back to generating positive EBITDA in September and October.”

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