Australian retailer Adore Beauty (ASX: ABY) has reported a sharp rise in profitability and margin expansion for the first half of the 2025 financial year (FY25) as its refreshed operational strategy focused on disciplined cost management and the expansion of its retail network begins to take shape.
Strong financial performance
The company posted operating earnings (EBITDA) of $2.8 million for the half-year which represents a 98 per cent jump from the same time last year. Its EBITDA margin clocked in at 4.5 per cent. Similarly, EBIT of $2.8 million surged by 126 per cent from twelve months prior.
Notably, the group generated a cash flow positive half-year. It also delivered a record gross margin of 36.2 per cent, marking a 270 basis point increase on the previous corresponding period.
Revenue for the first half of FY25 ticked up by 2.3 per cent to reach $103 million, whilst its database of contactable customers jumped by 20 per cent to now surpass 1.25 million.
Adore Beauty’s chief executive officer Sacha Laing commented:
“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.”
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