Adore Beauty Group (ABY) H1 2025 earnings summary

Executive summary

• Early stages of a refreshed three-year omnichannel strategy have delivered strong performance, targeting 30% revenue uplift and doubling of EBIT margin over three years.

• Revenue for H1 FY25 was AUD 103 million, up 2.3% year-over-year, reflecting momentum from profitable growth initiatives.

• Completed acquisition of iKOU Holdings Pty Ltd, with integration on track and positioned for growth.

• Opened first physical retail store in Victoria in February 2025, with a pipeline for 4-6 more Adore Beauty stores and 2 iKOU stores in 2025.

• Total contactable customers grew 20% year-over-year to 1.26 million; active customers up 4%.

Financial highlights

• H1 FY25 revenue was AUD 103 million, up 2.3% year-over-year.

• Gross margin increased by 270 basis points to 36.2%.

• EBITDA nearly doubled to AUD 4.7 million (4.5% margin), and EBIT rose 126% to AUD 2.8 million (2.7% margin).

• Net profit after tax was $1.9 million, up 90% year-over-year.

• Operating cash flow remained positive, but cash balance declined to $11.6 million due to the iKOU acquisition.

Outlook and guidance

• On track to exceed a 5% EBIT margin over the next three years, with reaffirmed EBITDA margin guidance of 4-5% and EBIT margin guidance of 2-3% for FY25.

• Three-year targets: revenue over AUD 260 million (30% growth), gross margin expansion of 200+ basis points, EBIT margin over 5%, and own brands to represent 8-10% of product revenue.

• On track to deliver a national retail store footprint of 25+ stores by 2027.