26 June 2024 , 08:06
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Revolution Beauty, the cosmetics brand, has announced a return to annual profit as it embarks on a revamp under new leadership after a tumultuous two-year period.
The firm stated that it has put past issues behind it, which included a disagreement with its former chief and a quarrel with its shareholder Boohoo. On Wednesday, in its yearly financial results, it reported a pre-tax profit of £11.4million for the year ending in February, a significant improvement from a loss of £33.9million the previous year.
Sales saw a modest increase of 2% year on year, totalling £191.3million, which the company attributed to the sale of surplus stock during the year. Revolution has been streamlining the brand and reducing the "excessive volume" of new product launches to concentrate on its core cosmetics range.
The retailer offers makeup, skincare, hair and body products online and through concessions in stores such as Boots and Superdrug. Lauren Brindley, the former vice president of Walgreens who was appointed as Revolution's chief executive in August, described the past year as one of "great strategic and financial progress following two challenging years".
The company faced a crisis in 2022 when its auditors declined to approve its accounts for the preceding year, leading to an investigation into the business and the suspension of its shares from the London Stock Exchange. Meanwhile, Revolution found itself in a tussle with Boohoo, which holds over 25% of the firm's shares, amid calls for a shake-up of its management.
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The saga peaked with the departure of co-founder Adam Minto, alongside ex-CEO Bob Holt and chairman Derek Zissman. Enter Ms Brindley, who took the helm to steer the company out of choppy economic waters and aiming to revamp the brand and leave past woes behind.
Ms Brindley said: "As the strategy continues to take effect, we expect to see a return to growth in the second half of the year. That will put us firmly on the right trajectory to achieving our ambition of being a top five player in the mass beauty market."