Adore Beauty Group Limited has reported its financial results for the 12 months ended 30 June 2024 with revenues of $195.7 million, marking a 7.4% increase on the prior year. EBITDA of $4.8 million was up 661%, with a margin of 2.5%, aligning with the company’s guidance.

The company’s customer base saw significant growth, with a record 519,000 returning customers, up 5.8% on PCP, accounting for 79% of product sales. Active customers increased to 814k, a 1.6% rise on PCP. The company also reported a record customer retention rate of 64.7% for the financial year, benefitting from an 8.6% growth in loyalty members on PCP.

“Adore Beauty’s loyal, returning customer base continues to underpin our revenue growth, contributing almost 80% of all product sales and driving improvements in basket sizes and annual spend per active customer,” said CEO Tamalin Morton.

Brand awareness in the company’s core demographic improved to a record 71%, up from 62% for the same period last year. Retail media revenue more than doubled on PCP to $4 million. The company is debt-free and generating positive cash with a balance of $32.9 million on 30 June 2024, up 18.3% on the PCP.

“Delighting our customers remains our top priority. We’re seeing the benefits of our customer centric strategy, with retention improving 8.5 percentage points over the year to 64.7%. Investment in brand and above-the-line marketing is strongly driving awareness of Adore Beauty, achieving a record 71% in our target audience – up from 62% last year. We are also continuing to expand our product range – now with over 300 brands – to ensure we have a compelling beauty and wellness proposition for our customers,” Morton added.

In the first seven weeks of FY25, revenue has increased by 7.0% on PCP. Adore Beauty acquired Australian beauty and wellness brand, iKOU, to further expand its private label offer and drive sales and margin expansion. The company also launched a new chatbot, ABi, to enhance responsiveness to customer queries.

“Alongside revenue growth, operational efficiency and operating leverage have improved profitability. Our marketing has been more effective – with expenditure down 3% on last year, whilst our sales, customer base and brand awareness have all grown. We’ve also developed the retail media arm of our business, which represented circa $4 million in revenue in FY24. We’ve invested in a dedicated team to further build on our award-winning content and its commercialisation opportunities, which should account for a larger proportion of revenue over the coming years,” said Morton.

“Our expanding product offer, private label portfolio, and our first Adore Beauty store footprint, further diversify our revenue and margin profile and support our long-term profitability targets,” Morton concluded.

The company has announced that Sacha Laing will join as the new CEO from 1 October. “I’m delighted to be joining Adore Beauty at this exciting time, as the Company embarks on its next chapter of growth,” said Laing.