Warpaint London plc (LON:W7L), the specialist supplier of colour cosmetics and owner of the W7 and Technic brands, has provided an update on current trading.
The Company announced on 20 September 2023, with its results for the six months ended 30 June 2023, that the Group had traded strongly post period end. Warpaint London is pleased to report that the strong trading has continued, with significant growth in all geographic areas, and consequently the results for the year ending 31 December 2023 are now expected to be ahead of market expectations.
Group sales for the year ending 31 December 2023 are now expected to be at least £85 million (2022: £64.1 million), with the key pre-Christmas sales period for the Group still ongoing. The Group’s gross product margin remains robust and continues to be at a level in excess of that achieved in 2022. Profit before tax for the year ending 31 December 2023 is now expected to be in excess of £16 million (2022: £7.7 million).
The Group’s expansion strategy continues, with further scheduled launches in 2023 and 2024 with new major retailers and the expansion of the range of products stocked with certain existing customers. Launches in November 2023 include a range of W7 products in 400 Etos stores in the Netherlands and 100 Watsons stores in the Philippines, together with a range of Technic products being launched in over 200 Wibra stores in the Netherlands. Further expansion is also scheduled with existing retailers, including W7 being stocked in an additional 372 CVS stores in the US and 102 Boots stores in the UK during Q1 2024.
Warpaint London sells branded cosmetics under the lead brand names of W7 and Technic. W7 is sold in the UK primarily to retailers and internationally to local distributors or retail chains. The Technic brand is sold in the UK and continental Europe with a significant focus on the gifting market, principally for high street retailers and supermarkets. In addition, Warpaint supplies own brand white label cosmetics produced for several major high street retailers. The Group also sells cosmetics using its other brand names of Man’stuff, Body Collection and Chit Chat.
