AS MADARA Cosmetics (MDARA) H2 2025 earnings summary

Executive summary

• Achieved 12% like-for-like turnover growth to EUR 23.22 million in 2025, with accelerated 15% growth in H2 and a two-phase approach: experimentation in H1 and focused execution in H2, emphasizing e-commerce and digital channel expansion.

• Completed seamless migration from Magento to Shopify, enhancing e-commerce capabilities, improving conversion rates by over 60%, and enabling the most successful Black Friday campaign.

• TikTok established as a key sales and discovery channel, with UK turnover scaling from €20,000 to €223,000 (28x growth in H2), and Level 4 seller status achieved.

• Launched hospitality solutions vertical with a refill-based sustainable model and expanded into B2B, including entry into the Middle East and scaling partnerships with MÜLLER and Al Dawaa.

• Achieved B Corp certification in April 2025, reinforcing commitment to sustainability and ethical business practices.

Financial highlights

• Revenue reached EUR 23.22 million, a 12% like-for-like increase year-over-year, with H2 growth accelerating to 15%.

• EBITDA was EUR 2.3 million (10% margin), down 5% from 2024, with margin improving from 7% in H1 to 13% in H2.

• Profit before tax was EUR 628 thousand, a 59% decrease year-over-year, impacted by a EUR 571 thousand one-off write-off from e-commerce platform migration.

• Amazon sales grew 65%, and direct e-commerce revenue share increased by 3 percentage points.

• Distributed a record EUR 3.48 million dividend, resulting in a negative net profit of EUR 208 thousand after tax.

Outlook and guidance

• Management targets at least 10% turnover growth for 2026 (EUR 25.54 million), aiming for a sustainable double-digit EBITDA margin.

• Continued focus on e-commerce, TikTok, channel/geographic diversification, especially in the Middle East, and new product innovation.

• Investment in new manufacturing machinery to support innovation in stick/solid formats, particularly for the lip category.

• Sufficient financial resources are available to support growth and ongoing dividend distributions.