Revolution Beauty Group PLC on Wednesday celebrated ‘excitement around the brand and demand’ for its products in new markets as it reported a return to profit.

The London-based cosmetics retailer said it swung to a pretax profit of £11.4 million in the financial year ended February 29, from a loss of £33.9 million a year prior.

Revenue edged up 1.9% to £191.3 million from £187.8 million.

The company highlighted that its Rest of World direct retail and distributor channels climbed 23% in revenue in the financial year to £84.6 million from £68.9 million. This showed ‘the excitement around the brand and the demand for our products in new markets. Our strategy of localising for key markets, both with our product portfolio and marketing campaigns, is proving highly effective and we have many opportunities ahead, both in existing markets and new territories.’

The jump in Rest of World revenue offset weakness in the UK and the US. In the UK, revenue declined 6.7% to £62.5 million from £67.0 million. In the US, revenue came in 15% lower at £44.2 million from £52.0 million.

Looking ahead, Chief Executive Officer Lauren Brindley said: ‘The post year end trading has continued to perform in line with our internal expectations. We continue to execute our Masterbrand strategy, which requires a reduction in both brands and stock keeping units and means we will not address certain aspects of sales made in H1 FY24. We remain confident of growing the business in the short term and reigniting our core offering as we work towards our goal of becoming a top five global mass beauty player by 2030.’

Revolution Beauty shares rose 3.6% to 23.30 pence each on Wednesday morning in London.

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