Adore Beauty Group Limited (ASX: $ABY) H1 FY24 Results

Adore Beauty Group Limited (ASX: $ABY) has reported its results for the six months ended 31 December 2023 (H1 FY24). The company achieved a 7% increase in revenue to $100.7 million, with a strong cash balance of $32.3 million and no debt. The reported EBITDA of $2.4 million and margin of 2.3% were in line with guidance, reflecting revenue growth, cost optimization, and re-investment in margin expansion initiatives.

CEO Commentary on H1 FY24 Performance

Adore Beauty's CEO, Tamalin Morton, commented, 'Adore Beauty has had a solid start to FY24, delivering growth across key metrics as we continue to build momentum in a challenging retail environment. Our performance reflects the impact of our strategic initiatives, improved operational efficiency, and our compelling customer value proposition. Encouragingly, we've seen our positive sales trajectory continue into the second half with revenue up 8.1% on the same period last year.'

Summary of H1 FY24 Results and Outlook

Adore Beauty Group Limited (ASX: $ABY) reported a 7% increase in revenue to $100.7 million in H1 FY24, supported by record average order values and annual spend per customer. The company's strong cash balance of $32.3 million and no debt position it well to support strategic initiatives. Adore Beauty's CEO highlighted the positive sales trajectory continuing into the second half with revenue up 8.1% on the same period last year. The company remains on track to achieve an EBITDA margin of 2-4% in FY24. Adore Beauty's refined strategy, including brand awareness initiatives, mobile app contribution, subscription service, and exploration of physical store formats, is expected to drive future growth. The company's strong cash position and disciplined re-investment in key strategic initiatives are aimed at delivering revenue and customer growth, operating leverage, and EBITDA margin expansion despite challenging retail conditions expected for most of 2024.