Adore Beauty Group (ABY) H1 2025 earnings summary

Executive summary

• Early stages of a refreshed three-year omnichannel strategy delivered strong performance, targeting 30% revenue growth and a doubling of EBIT margin, with a focus on becoming a leading beauty authority.

• Revenue for H1 FY25 was $103 million, up 2.3% year-over-year, reflecting momentum from strategic transformation and disciplined execution.

• EBITDA rose 98% to $4.7 million and EBIT increased 126% to $2.8 million, with margin expansion driven by own brands and retail media.

• Acquisition and integration of iKOU completed, strengthening the own brand portfolio and supporting future growth.

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

Financial highlights

• H1 FY25 revenue was $103 million, up 2.3% year-over-year, with gross margin expanding by 2.7 percentage points to 36.2%.

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

• Net profit after tax was $1.9 million, up 90% year-over-year, despite one-off acquisition and restructuring costs.

• Cash balance at 31 Dec 2024 was $11.7 million, reflecting iKOU acquisition and store rollout investments, with no debt.

• Marketing as a percentage of sales decreased by 0.6 points to 13.3%.

Outlook and guidance

• EBITDA margin guidance reaffirmed at 4-5% for FY25; EBIT margin guidance at 2-3%.

• Three-year targets: revenue over $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.

• Plans to expand owned brands and retail presence in new geographic regions.