• Improved quality of revenue, CODB efficiencies, and own brand driving profit growth
• Executing omnichannel strategy at pace with new stores, loyalty program, and AI personalization
• Significant progress on iKOU acquisition integration and benefits

Adore Beauty Group Limited (ASX: ABY) reported a strong FY25 performance, with record EBIT of $4 million and record EBITDA of $8.1 million, up 74.8% and 67.8% respectively over the prior year. This was driven by improved quality of revenue, CODB efficiencies, and growth in owned brands. The company executed its omnichannel strategy at pace, opening eight new Adore Beauty and three iKOU retail stores since February 2025, with a further two under construction. The company also invested in its core e-commerce business, adding 60 new brands, launching a new loyalty program, and implementing advanced AI personalization to improve the customer experience. The successful integration of the iKOU acquisition also contributed to the strong financial performance, with iKOU now Adore Beauty's largest wholesale customer and the brand expanding its retail footprint. Operational initiatives, including in-housing the digital agency, optimizing inventory management, and leveraging group-wide capabilities, delivered material cost savings and margin expansion.

Owned brands expected to account for >6% of Group revenue in FY26. Group EBIT margin guidance of 2.5-3.5% in FY26 (50-150bps increase on FY25). Group EBITDA margin guidance of 5-6% in FY26 (90-190bps increase on FY25).

Continued new customer growth in FY26 +14.0% YTD; on track to achieve targeted 1.25M active customer base by 2027. Further three new retail stores planned in FY26; on track to deliver a national retail footprint of 25+ stores across both brands by end FY27. Company wide operational initiatives to further improve efficiency, customer experience and margin expansion, including new National Fulfillment Centre in FY27.