Adore Beauty Group (ABY) H2 2024 earnings summary

Executive summary

• Annual revenue reached AUD 195.7 million for FY24, up 7.4% year-over-year, with EBITDA rising 661% to AUD 4.8 million (2.5% margin), reflecting strong customer retention, brand awareness, and operational efficiencies.

• Active customers reached 814,000 (+1.6%), with returning customers up 5.8% to 519,000, accounting for 79% of product sales.

• Customer retention improved to 64.7% (+8.5 points), and brand awareness in the target demographic rose 9 points to 71%.

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

• New retail concept stores and digital initiatives, including a chatbot and 'Subscribe & Save' service, support omnichannel growth.

Financial highlights

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

• Reported EBITDA increased 661% to AUD 4.8 million (2.5% margin), and operating EBITDA (excluding share-based payments) rose over 5,900% to AUD 5.4 million (2.8% margin).

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

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

• Retail media revenue more than doubled to AUD 4 million.

Outlook and guidance

• Revenue in the first seven weeks of FY25 is up 7% year-over-year, with a positive sales trajectory expected to continue.

• Targeting an EBITDA margin of 4-5% in FY25, supported by iKOU integration and operational efficiencies.

• Two retail concept stores to open in Victoria in H2 FY25, supporting omnichannel strategy.

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