Adore Beauty Group has reported a significant increase in its earnings before interest and taxes (EBIT) for the first half of the fiscal year ending December 31, 2024. The beauty retailer’s EBIT surged by 98% year-over-year to $4.7 million, reflecting a strong performance in profitability despite a relatively modest sales increase.
Sales for the period rose 2.3% to $103 million, while the company achieved a record gross margin of 36.2%. Its EBITDA margin stood at 4.5%, underscoring the company’s ability to effectively manage costs and expand margins.
However, Adore Beauty’s net profit attributable to shareholders declined by 36.6%, reaching $628,000. This decline was largely due to one-off costs associated with restructuring and acquisitions, totaling $2.2 million.
“We remain focused on expanding gross margins through the growth of our owned brands, further development of retail media, refining our promotional strategies, and maintaining disciplined inventory management,” said Sacha Laing, CEO of Adore Beauty. “As we continue to expand margins, grow our online channels, and develop our store network, we are well-positioned to deliver significant growth in both revenue and profit over the next three years.”
In November 2024, Adore Beauty outlined its three-year growth strategy, which includes the establishment of a national retail store network. The company plans to open more than 25 stores under its Adore Beauty and Ikou brands as part of this initiative. The expansion aims to enhance the company’s market presence and drive further revenue growth.
Adore Beauty’s commitment to strategic growth and margin expansion signals a strong outlook for the company in the coming years.
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