Adore Beauty Group (ABY) H2 2024 earnings summary

Executive summary

• Revenue grew 7.4% year-over-year to AUD 195.7 million, with gross profit margin up 0.8 points to 33.4% and reported EBITDA up 661% to AUD 4.8 million, reflecting strong customer retention and operational efficiencies.

• Record customer retention at 64.7% (+8.5 points), brand awareness in the target demographic rose 9 points to 71%, and annual revenue per active customer reached AUD 235.

• Active customers reached 814,000 (+1.6%), with returning customers up 5.8% and now representing 79% of product sales.

• The acquisition of iKOU, a premium beauty and wellness brand, was completed and is expected to drive further margin expansion and revenue growth, with integration underway.

• Operational focus on customer centricity, brand awareness, and optimization supported profitability and growth.

Financial highlights

• Annual revenue reached AUD 195.7 million, up 7.4% year-over-year, driven by a record 519,000 returning customers.

• Gross profit increased 10.2% to AUD 65.5 million, with gross margin at 33.4% (+0.8 points year-over-year).

• Reported EBITDA increased 661% year-over-year to AUD 4.8 million (2.5% margin); operating EBITDA rose to AUD 5.4 million (2.8% margin).

• Net profit after tax was AUD 2.2 million, a turnaround from a loss in the prior year.

• Cash balance at year-end was AUD 32.9 million, up 18.3% from the prior year, with the business remaining debt-free.

Outlook and guidance

• Revenue in the first seven weeks of FY2025 is up 7% over the prior period, with a positive sales trajectory expected to continue.

• Targeting an EBITDA margin of 4%-5% in FY2025, supported by iKOU integration and operational efficiencies.

• Challenging conditions expected to persist due to cost of living pressures and softer consumer sentiment.

• Large addressable market in Australia’s AUD 13.9 billion beauty and personal care sector.