Adore Beauty (ASX:ABY) share price climbs on record result

The online beauty retailer posts a glamorous debut full-year result for FY21…
The post Adore Beauty (ASX:ABY) share price climbs on record result appeared first on The Motley Fool Australia. –

The Adore Beauty Group Ltd (ASX: ABY) share price is climbing in lunchtime trade on Monday. This follows the release of the online beauty retailer’s full-year results for the FY21 financial year.

At the time of writing, shares in the beauty company are levitating at $5.01, up 4.2%.

Adore Beauty share price rises as revenue increases 48%

The Adore beauty share price is moving well into the green today after the company delivered record numbers for the 12 months ending 30 June 2021. Here are some of the key highlights:

Record revenue of $179.3 million, up 48% year-over-year
Record earnings before interest, tax, depreciation, and amortisation (EBITDA) of $7.6 million, up 53% from FY20
Active customers increased 39% year-over-year to 818,000
Gross profit margin of 33.1%, up 1.2% from the prior year
$29 million in cash at the end of FY21

What happened in FY21 for Adore Beauty?

In a massive financial year for the company, Adore Beauty managed to exceed its guidance and deliver strong growth in its first full-year result being publically listed.

Record revenue, profit, and customers were achieved in FY21. According to the release, COVID-19 lockdowns provided a spike in new and returning customers. In fact, active customers rose 39% from FY20.

Although the focus shifted away from cosmetics with consumers staying at home more, skincare products experienced a boost.

Furthermore, the accelerated online market shift resulted in a record revenue result of $179.3 million — representing a 48% increase on the prior corresponding period. Not only did revenue from customers increase through acquiring more buyers but annual revenue per active customer also rose 7% — indicating customers spent more.

Moreover, Adore ticked various items off its to-do list. This included launching a native iOS and Android mobile app, launching a loyalty program, and increasing brand awareness via an expanded national TV campaign. These achievements could be considered as positive for the Adore Beauty share price today.

While Adore’s EBITDA surged to a record $7.6 million for the period, net profit after tax came out at $46,000. For comparison, NPAT for FY20 was $898,000.

What did management say?

Adore Beauty CEO Tennealle O’Shannessy commented on the record result, stating:

Adore Beauty has had an exceptional start to listed life, delivering record revenue and profitability in its first full-year result. Our record financial performance in FY21 highlights the strength of our underlying business and our market-leading position as the online destination of choice within a large $11 billion addressable market.

Adore Beauty continues to capitalise on the structural shift to online channels, rapidly adding new customers that are profitable within the first year. We are committed to delivering a personalised and customer-led beauty discovery and shopping experience, underpinned by ease, convenience, and authentic, trusted content.

What’s the outlook for Adore Beauty?

Looking ahead, the Adore Beauty management has highlighted it continues to benefit from the ongoing structural shift due to COVID-19. In addition, year-to-date revenue in FY22 is up 26% on the prior corresponding period.

While the continued impact of lockdowns has provided a tailwind, it also adds uncertainty to operations. As a result, the company has not provided guidance on this basis. At the same time, EBITDA margins are expected to be between 2% and 4% as the company continues to reinvest for growth.

Adore Beauty share price snapshot

Investors might read today’s results and expect the Adore Beauty share price to have performed well over the past year.

Instead, shares in the online beauty retailer have dropped nearly 28% in the last 12 months. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has climbed 23.6%.

The post Adore Beauty (ASX:ABY) share price climbs on record result appeared first on The Motley Fool Australia.

Should you invest $1,000 in Adore Beauty right now?

Before you consider Adore Beauty, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Adore Beauty wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

2 quality ASX shares to look at this weekend

3 stellar small cap ASX shares for your watchlist

Analysts rate these ASX tech shares as buys

3 small cap ASX shares to put on your watchlist this week

3 exciting small cap ASX shares to watch

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!