Adore Beauty Group Limited (ASX:ABY) Reports Strong H1 FY25 Results
Financial Performance
Adore Beauty Group Limited (ASX: ABY) reported EBITDA of $4.7 million, up 98% on the prior corresponding period, with an EBITDA margin of 4.5%. EBIT reached $2.8 million, a 126% increase, resulting in a 2.7% margin. Revenue was $103.0 million, marking a 2.3% rise, and the gross margin hit a record 36.2%, up 270 basis points. The total contactable database grew to 1.26 million, a 20% increase.
Strategic Initiatives
The company completed the initial integration of iKOU and is positioned for accelerated growth with its retail store network. Adore Beauty opened its first retail store in February at Westfield Southland, with plans to open 4-6 additional stores in 2025 across Australia. The three-year strategy targets 30% revenue growth and doubling EBIT margins, supported by expanding owned brands, retail media, and disciplined inventory management.
Financial Position
Adore Beauty maintains a strong financial position with a cash balance of $11.7 million and no debt, despite a reduction from $32.9 million due to the $20 million acquisition of iKOU and initial store capital. The company remains cash flow positive and reaffirmed its EBITDA margin guidance of 4-5% and EBIT margin guidance of 2-3% for FY25.
Executive Comments
CEO Sacha Laing stated, “Our half-year results demonstrate the strength of the Adore Beauty brand and the early momentum of our strategy refresh focusing in the near-term on enhancing quality of earnings and optimising our operating model. I am delighted with the demonstrated gains in gross margin which delivered material improvement and the subsequent 126% growth in EBIT in the half. This is just the start for us as we accelerate the execution of our strategic levers, including the opening of additional retail stores across Australia”
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group. The Motley Fool Australia has recommended Adore Beauty Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.