Warpaint London expects to double profits in FY23 and beat market forecast
() , a specialist cosmetics supplier and owner of the W7 and Technic brands, updated markets on year-to-date financial performance.
As previously announced in Warpaint's September interim report, the group entered H2 with strong momentum and strong trading post-period end. Today, Warpaint went further and announced that in light of continued robust performance, with significant growth in all geographic areas, it now expects its full-year results to be ahead of market expectations. shares jumped 7% on the news.
Specifically, group sales for the full-year ending December 31 2023 are now expected to be at least £85m, up from £64.1m a year ago, with the key pre-Christmas sales period still ongoing. Similarly, Warpaint's gross product margin remains high, continuing to exceed the margin achieved in 2022. Pre-tax profit for FY23 is expected to come in at £16m, more than double last year's £7.7m.
Warpaint also commented on its ongoing expansion strategy, with further scheduled launches in 2023 and 2024 and products expected to hit new major retailers while expanded ranges will be delivered to certain existing customers:
Launches this month 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. For existing retailers, further expansion is scheduled including W7 in an additional 372 CVS stores in the US and 102 Boots stores in the UK during Q1 2024.
Post-pandemic, the cosmetics market has seen a resurgence, with worldwide revenue from cosmetics rebounding to $100.50 billion in 2022 and anticipated to grow at a rate of 6.85% each year through 2022-2026. The colour cosmetics market in particular is projected to see a CAGR of 5.54% between 2022-2032 while garnering $140 billion.
For Warpaint, its focus on affordable prices has given it an edge over the past 2 years as the cost of living crisis continues to squeeze budgets. In addition, amid an increasingly health-conscious population, the call for 'cleaner' products has become increasingly loud, with Warpaint aligning itself well with this market driver too.
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