Fast-growing make-up and skincare brand Revolution Beauty plans to float on AIM next month in a reported £500 million initial public offering.
The beauty brand, whose customers include Boots and Superdrug as well as US retail titan Target, has seen digital growth accelerate during the pandemic and institutional investor Jupiter Asset Management is clearly excited by the story, having pledged to subscribe for £90 million worth of placing shares.
EYE-CATCHING GROWTH
A mass-market cosmetics-to-haircare products maker, Revolution Beauty was co-founded eight years ago by Adam Minto and Tom Allsworth.
Minto, CEO, says he ‘wanted to make high quality cosmetics and skincare affordable for everyone and now we’re on track to achieve these goals around the world’.
Today, the company sells its wares in retailers across five continents and boasts a rapidly growing online customer base.
Retail customers include the likes of Superdrug and Boots in the UK, Ulta and Target across the pond and also Australia’s leading health and beauty retailer Priceline, while its digital partners include Amazon, ASOS, Boohoo and Zalando.
In addition, the company has its own direct to consumer channel and successfully collaborates with beauty influencers to promote its products on social media platforms, notably Instagram and TikTok.
DIFFERENTIATED MODEL
‘Our differentiated business model brings together both online and retail revenues, while our manufacturing and consumer feedback strategy enables us to bring new products to market quickly,’ enthuses Minto.
He insists this means Revolution Beauty ‘can quickly respond to the megatrends driving the global mass beauty industry’.
In the fourteen months to February 2021, Revolution Beauty generated sales of £157.6 million and EBITDA (adjusted earnings before interest, taxation, depreciation and amortisation) of £13.1 million.
Jupiter is investment adviser to Chrysalis Investments (CHRY), the investment trust which expects to invest around £45 million as part of Revolution Beauty’s IPO. Chrysalis’ co-portfolio managers Nick Williamson and Richard Watts commented:
‘Over the last seven years, Adam and Tom have built an amazing company, able to bring exciting products that customers want to market significantly faster than its competition. With a small market share in a huge market and a compelling customer proposition, we believe Revolution Beauty is well placed to grow aggressively in the years ahead.’
