Revolution Beauty, a beauty company currently facing difficulties, has finally disclosed its long-awaited financial results for the fiscal year ending in February 2022. The company revealed operating losses worth £38.8 million, marking a significant increase of approximately £30 million when compared to the previous year. On the bright side, the company’s revenue experienced a remarkable surge of 35% and reached £184.6 million.

The delay in releasing the financial results was primarily because the company’s auditors had expressed concerns. Consequently, Revolution Beauty’s shares were suspended from trading, and its founder, Adam Minto, took a step back from the company. The auditors raised objections regarding the company’s practice of inflating revenue to meet sales objectives, as well as providing undisclosed personal loans to its distributors. It was discovered that these activities were unbeknownst to the wider board.

EBITDA for the year displayed losses amounting to £0.8 million, marking a substantial decline compared to the previous year’s profit of £14.2 million. Moreover, pre-tax losses skyrocketed to £44.9 million from £17.8 million. The company attributed these losses to the exorbitant freight costs incurred during the pandemic, which greatly impacted its financial performance.

The current CEO of Revolution Beauty, Bob Holt, stressed the significance of integrity and transparency across all aspects of the business. Holt affirmed that the new leadership team is diligently working on reestablishing internal controls and refining processes to ensure consistent operational excellence on a global scale.

Acknowledging that the latest financial figures fell below the forecasts made by the previous management team, the company’s chairman emphasized its resilience, strong brand, loyal customer base, and immense potential for sales and profitability. Despite the setbacks, Revolution Beauty aims to rebuild its reputation and regain investor confidence. The company is implementing measures to fortify internal controls and enhance transparency in its operations. With its dedicated customer base and potential for growth, Revolution Beauty strives to overcome recent obstacles and achieve long-term success in the beauty industry.

Useful links:

– For more information on Revolution Beauty’s financial performance, click [here](https://www.revlon.com/)
– To explore Revolution Beauty’s products and offerings, visit their official website [here](https://www.revolutionbeauty.com/)