Adore Beauty has returned to revenue growth in FY24 as the company continues to prioritise customer experience and convenience.
Adore Beauty has delivered revenue of $ 47.5 million for the first three months of FY24, a YoY increase of 4.7 percent.
In August, the company revealed its FY23 results, showing a decrease in revenue of 9.6 percent over the previous year, down to $180.6 million. The company said its reported EBITDA of $0.6 million, down from $5.3 million in FY22, reflected “lower operating leverage, cost inflation, and re-investment in key initiatives” in its fall of around 89 percent.
FY24 is faring better for the company despite tougher trading conditions as the industry continues to feel cost of living pressures. Alongside revenue growth, active customer numbers return to growth, up 1.5 percent on the PCP to 803k. The company has also grown to a record 497k returning customers, up 4.7 percent on the PCP.
Commenting on Adore Beauty’s year-to-date performance, CEO Tamalin Morton said, “While trading conditions remain challenging, Adore Beauty has had a solid start to FY24, with both revenue and active customers up on the same period last year. Encouragingly, active customer numbers have now returned to growth, and we continue to see positive momentum with a comprehensive offering that provides real value-added benefits.”
Last year, Adore Beauty announced plans for a disciplined re-investment in key growth initiatives which include the mobile app and loyalty program, broad product offering, private label, and growing owned content and marketing channels.
Adore Beauty’s mobile app contributed 26.5 percent of all sales for the first quarter period, up 1.9 percent on June 2023 and nearing the company’s initial 30 percent revenue target.
The company continues to executing on its refined strategy with a newly launched subscription service. Adore Beauty’s ‘Subscribe and Save’ service is now available across 18 brands, including SkinCeuticals, Alpha H, Lancome, AB Lab, ELEVEN, Viviology and Ultra Violette, with automated six-to-12-week replenishment.
Going forward, Morton says, “we continue to prioritise customer experience and convenience, augmenting our offering to now include a subscription service across popular brands. Our ‘Subscribe and Save’ offer ensures customers receive their frequently used products at the right time and best price. The offer has been designed to reduce friction for customers, support loyalty and retention, and improve average order frequency.”
Adore Beauty concluded that at this point, it is on track to achieve EBITDA margin of 2-4 percent in FY24.