• Strong profit growth and margin expansion
• Record Gross Margin of 36.2%
• Accelerating retail store network expansion

Adore Beauty Group Limited (ASX: ABY) has released its results for the six months ended 31 December 2024 (H1 FY25), demonstrating the success of its strategy refresh. The company reported strong profit growth and margin expansion, with Reported EBITDA of $4.7 million (up 98% on PCP) and a Reported EBIT of $2.8 million (up 126% on PCP). Adore Beauty's gross margin also reached a record 36.2%, up 270bpts on the prior corresponding period. Revenue grew by 2.3% to $103.0 million. The company's total contactable database increased by 20% to 1.26 million. Adore Beauty's CEO, Sacha Laing, highlighted the strength of the Adore Beauty brand and the early momentum of the strategy refresh, which has focused on enhancing the quality of earnings and optimizing the operating model. The company is leveraging multiple growth initiatives, including establishing a national retail store network of more than 25 stores across its Adore Beauty and iKOU brands, growing its owned brands portfolio, and expanding its retail media offerings. Adore Beauty remains in a strong financial position, with $11.7 million in cash on hand and no debt. The company has reaffirmed its EBITDA margin guidance of 4-5% and EBIT margin guidance of 2-3% for FY25.

Adore Beauty has reaffirmed its EBITDA margin guidance of 4-5% and EBIT margin guidance of 2-3% for the 2025 financial year.

Adore Beauty is well-positioned to deliver a material step change in both revenue and profit growth over the next three years, driven by the expansion of its retail store network, growth of owned brands, and increased contribution from retail media.