Adore Beauty Group Limited reported a 7% revenue increase to $100.7 million for H1 FY24 compared to the prior corresponding period, driven by record average order values and annual spend per customer.
The company experienced an 8.1% revenue increase in the first six weeks of H2 FY24 compared to the prior corresponding period.
Reported EBITDA was $2.4 million with a margin of 2.3%, reflecting growth, cost optimization, and reinvestment in margin expansion initiatives.
Adore Beauty saw a record 507K returning customers, a 5% increase from the prior period, representing 81% of product sales.
Active customers slightly increased by 0.5% to 804K.
The company maintains a strong cash balance of $32.3 million, with no debt, to support strategic initiatives.
Key strategic initiatives include increasing brand awareness, growing mobile app sales contribution to 26.3% of product sales, launching a subscription service, exploring physical store opportunities, and pursuing mergers and acquisitions.
Brand awareness increased to 66% in January 2024, with mobile app order values and frequency outperforming web sales.
The company introduced a Subscribe & Save offering across 30 brands to improve customer experience and order frequency.
Adore Beauty added 15 new brands during the half, expanding its portfolio to over 270 brands and 13,000 products.
The company invested in an above-the-line brand campaign to drive brand awareness, particularly in the 25-45 female demographic.
Adore Beauty's content-driven marketing strategy increased impressions by 35% on the prior corresponding period, contributing to retail media and brand-funded marketing growth.
The company remains on track to achieve an EBITDA margin of 2-4% in FY24 despite challenging retail trading conditions expected for most of 2024.
This announcement is a summary of the company approved ASX announcement on 26/2/2024.