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- Online beauty retailer Adore Beauty Group (ABY) has hit a record revenue of over $113 million, an 18 per cent increase, over the first half of FY22
- However, a large amount was spent on marketing initiatives and developments for its in-house skincare brand, therefore, profits dropped 22 per cent to $1.97 million
- Returning customers grew 56 per cent compared to this time last year and returning customers made up 71 per cent of Adore’s revenue
- The beauty company said it will continue to invest in its loyalty program and owned marketing channels like its podcasts to increase brand awareness
- On the market this afternoon, Adore is down 8.52 per cent and trading at $2.47 per share
Adore Beauty Group (ABY) has shown strong results this half-year despite a drop in profit, hitting a record revenue and customer numbers.
The cosmetic retailer saw its revenue up 18 per cent on the previous corresponding period to $113.1 million and active customers increased 13 per cent.
However, a large amount was spent on marketing initiatives and developments for its in-house skincare brand, therefore, profits dropped 22 per cent to $1.97 million.
Adore has been prioritising loyalty initiatives, which saw returning customers grow 56 per cent on year on year, however, there was a 12 per cent decline in new customers
Notably, 71 per cent of the company’s revenue is generated by returning customers who order from the business around three times a year.
Adore’s new mobile app delivered 5.6 per cent of the first quarter revenue and 7.9 per cent of second quarter revenue.
The beauty company said it will continue to invest in its loyalty program and owned marketing channels like its podcasts to increase the aim of brand awareness to more than 80 per cent.
In total, nearly $16 million was spent on advertising and marketing efforts.
“Adore Beauty has delivered another strong financial result with record revenue, active customers and multiple record trading days, one of which was achieved post lockdown,” CEO Tennealle O’Shannessy said.
“Our owned marketing channels are also positively impacting marketing costs, which are trending significantly below industry inflation. We continue to re- invest in our longer-term strategic priorities, including private label, mobile app, loyalty and adjacency expansion, which support future outperformance and increase our market share within an $11 billion category benefitting from significant structural tailwinds.”
On the market this afternoon, Adore was down 8.15 per cent and is trading at $2.48 per share at 3:00 pm AEDT.
