• Strong EBIT1 result and margin expansion
• Record Gross Margin of 35.9%, up 240bpts on PCP
• First Adore Beauty retail store opening on 1 February 2025

Adore Beauty Group Limited (ASX: ABY) provided a preliminary update on its business and unaudited financial performance for the six months ended 31 December 2024 (H1 FY25). The company delivered a strong EBIT1 result and margin expansion as it progresses its near-term objectives of improving quality of revenue and underlying profitability. Key highlights include: EBITDA1 of $4.6 million, up 94% on the prior corresponding period (PCP); EBITDA1 margin at 4.4%; EBIT1 of $2.7 million, up 118% on PCP; EBIT1 margin at 2.6%; record Gross Margin of 35.9%, up 240bpts on PCP; revenue of $103.0 million, up 2.3% on PCP; and a cash balance of $11.7 million at 31 December 2024. Adore Beauty's strong performance in H1 FY25 was driven by the implementation of key initiatives in its 3-year strategy, including improving quality of earnings through disciplined execution of promotional events, accelerated growth of owned brands, increased contribution of highly margin-accretive retail media, and operating cost and working capital efficiencies. The company is on track to open 25+ physical stores, with the first Adore Beauty retail store opening on 1 February 2025 and additional iKOU branded stores in March.

Adore Beauty re-affirms its EBITDA margin guidance of 4-5% for FY25.

Adore Beauty's plans to open 25+ physical stores are on track and will deliver a material step change in its revenue growth and profitability metrics.