W7 owner Warpaint hails another record first half

17th Sep 2024 09:11

(Sharecast News) - Cosmetics company Warpaint posted a jump in first-half sales and profit on Tuesday, with a record level of sales delivered at a significantly higher margin.

In the six months to the end of June, earnings before interest, tax, depreciation and amortisation rose 66% to £12m, while group pre-tax profit came in at £10.9m, up from £6.2m in the same period a year earlier.

Revenue grew 25% to £45.8m, with UK revenue up 17% at £15.5m and international sales 30% higher at £30.3m.

Sales of the W7 brand rose 25% during the half to £30.2m, with particularly strong growth in the UK and Europe. Meanwhile, the Technic brand saw a 34% rise in sales to £14.5m, also with particularly strong sales in Europe and the UK.

Warpaint said gross profit margin increased by a further 334 basis points to 42.5%, mainly due to successful launches of new product lines, sourcing and volume savings, growing e-commerce revenue and increased US profitability.

Chief executive Sam Bazini said: "I am delighted with the group's performance in the first half, with continuing strong growth in sales and profits reflecting the ongoing success of the group's strategy of focusing on growing profitable sales of its branded products globally, whilst increasing overall margins.

"There continues to be significant growth opportunities for Warpaint, and the group is very well positioned to achieve further growth with additional improvement in margins. As in previous years, the group's sales are expected to be second half weighted, reflecting Christmas seasonal sales and ongoing sales momentum."