Warpaint London H1 is strong in UK and US, momentum continues
Beauty specialist Warpaint London flagged its latest results a few weeks ago but on Wednesday it offered up more details as it confirmed its figures for the first six months of the year.
It reported record first-half sales and a significantly improved gross margin, “reflecting the focus on growing sales of the group's branded products”.
Group sales for the owner of W7 and Technic increased by 37% to £25.2 million in H1 and UK revenue increased by 17% to £10.4 million. International revenue rose 55% to £14.8 million.
The gross profit margin increased to 39% from 34.5%, “despite continued supply side price inflation and higher than historic freight costs”.
It all resulted in adjusted EBITDA of £4.4 million, up from £2.1 million, and statutory profit from operations of £3.5 million, up from £0.3 million.
The improved performance came in a busy period as the company saw the successful launch in Boots of 45 W7 products in an initial 80 stores in February. It also opened six new accounts in the US, including CVS, “where a significant Christmas 2022 order has been received”.
Meanwhile, online sales “continue to accelerate in the UK and the US, with an increase of 44% in e-commerce sales in H1 2022 compared to H1 2021”.
The company added that it has seen "continued positive business momentum post-period-end, with unaudited group sales for the eight months to 31 August of £37.5 million, up from £27.1 million.
Adjusted profit before tax is expected to be in excess of £9 million, on anticipated sales of at least £61 million, for the year ending 31 December.
The group's expansion strategy also continues with planned launches in H2 2022 and 2023 “with new major retailers and the expansion of the range of products stocked with certain existing customers, particularly in the UK and the US”.
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