Warpaint London plc (LON:W7L), the specialist supplier of colour cosmetics and owner of the W7 and Technic brands has announced its unaudited interim results for the six months ended 30th June 2022.
|·||Strong growth in sales during the period to reach a record first half level for the Group, reflecting the focus on growing sales of the Group’s branded products|
|·||Group sales increased by 37% to £25.2 million in H1 2022 (H1 2021: £18.4 million)|
|·||UK revenue increased by 17% to £10.4 million (H1 2021: £8.9 million)|
|·||International revenue increased by 55% to £14.8 million (H1 2021: £9.5 million)|
|·||Gross profit margin increased to 39.0% (H1 2021: 34.5%), despite continued supply side price inflation and higher than historic freight costs|
|·||Adjusted EBITDA of £4.4* million (H1 2021: £2.1* million)|
|·||Adjusted profit from operations of £4.8** million (H1 2021: £1.6** million)|
|·||Statutory profit from operations of £3.5 million (H1 2021: £0.3 million)|
|·||Cash of £4.3 million as at 30 June 2022 (30 June 2021: £6.7 million)|
|·||The board has declared an increased interim dividend of 2.6p per share (2021 interim dividend 2.5p per share)|
|·||Consistent with previous years, the Group’s financial performance is expected to be second half weighted|
* Adjusted for foreign exchange movements, share based payments and exceptional items.
** Adjusted for exceptional costs of which there were £0.1 million in the period (H1 2021: £0.005 million), £1.1 million of amortisation of intangible assets (H1 2021: £1.2 million) and share based payments of £0.1 million (H1 2021: £0.1 million). Adjusted numbers are close to the underlying cash flow performance of the business which is regularly monitored and measured by management.
|·||Successful launch in Boots of 45 W7 products in an initial 80 stores in February 2022|
|·||Six new accounts opened in the US, including CVS, where a significant Christmas 2022 order has also been received|
|·||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|
Post-Period End Highlights
|·||Continued positive business momentum post period end, with unaudited Group sales for the eight months to 31 August 2022 of £37.5 million (8 months to 31 August 2021: £27.1 million)|
|·||Revenue and adjusted PBT guidance for the full year increased on 8 September 2022, reflecting this continued strong trading momentum across the business. Adjusted profit before tax (adjusted for exceptional costs, amortisation of intangible assets and share based payments) is expected to be in excess of £9 million, on anticipated sales of at least £61 million, for the year ending 31 December 2022|
|·||The Group’s expansion strategy 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|
|·||Launch of an initial range of 96 W7 products in 280 H-E-B stores, a Texas, US, based supermarket group, from October 2022|
|·||Launch of a range of 60 W7 cosmetic products in 190 CVS stores, in the US, from January 2023|
|·||To provide some assistance with increased living costs and to recognise exceptional efforts in a record period for the Group, all of the Group’s 122 employees (which excludes the board members) are being awarded a payment of £1,000 over and above their normal remuneration in October 2022|
Commenting, Sam Bazini Warpaint London Chief Executive, said:
“I am pleased that following the return of the Group to growth in 2021 this trend has continued in the first half of 2022. We have grown sales in the UK, continental Europe and elsewhere internationally in the period, all at an improved margin, despite supply side inflationary and other cost pressures.
“We have been, and continue to be, successful in both adding new retailers to our list of customers and expanding the number of products and outlets served with our existing major customers. I am confident that this can continue and we are working in partnership with a number of our larger existing retailers, both in the UK and internationally, to grow sales further. We are also in active discussions with additional major retailers.
“We are well capitalised with a healthy balance sheet and have significant opportunities for further growth, both already planned with customers and additional ones in discussion. I am confident that the Group will continue to perform well for the remainder of the year and beyond.”
Warpaint’s management will be hosting an online presentation and Q&A session at 5.30 p.m. BST today, Wednesday 21 September 2022. This session is open to all existing and prospective shareholders. Those who wish to attend should register via the link below and they will be provided with access details:
Participants will have the opportunity to submit questions during the session, but questions are welcomed in advance and may be submitted to: email@example.com.