Record sales and profits in 2024 at an improved margin and a solid start to 2025: welcome to the bright, shiny world of Warpaint London.
The specialist colour cosmetics supplier and owner of the W7, Technic, Skin & Tan, Super Facialist, Dirty Works and Fish Soho brands had much to celebrate Tuesday (29 April).
Revenues for the year to 31 December grew 13% to £101.6 million as EU revenue increased 22% to £54.7 million, UK revenue rose 8% to £35 million, and US revenue increased 19% (up 22% in US dollar terms) to £8.7 million.
Meanwhile, direct online sales “continue to grow significantly”, up 35% in 2024 to £8.4 million, accounting for 8.3% of group sales, up from 6.9% in the previous year.
Adjusted pre-tax profit jumped 33% to £24.2 million, with the gross profit margin hitting 39.9%, up 130bps. And all this “despite the challenging macroeconomic environment” it noted.
And how was this achieved? “Warpaint’s consistent and focused strategy of ensuring its branded products are sold through an ever-expanding network of large retailers globally, by gaining more space within these retailers, entering relationships with new ones and increasing the group’s online sales presence”, it said.
UK product expansion included its full range of Technic products launched in an initial 202 Morrisons supermarket stores; further expansion with Boots, with an over fourfold increase in retail space; a further rollout with Superdrug; and expansion with supermarket giant Tesco.
In the US, the company expanded its W7 range, rolling out to a further 387 stores run by CVS, on top of a “significant order” received from Walmart, for W7 and Chit Chat product, and “significant expansion” with Five Below.
Other highlights included the completion of the Brand Architekts acquisition in February, adding a portfolio of health, beauty and personal care brands to the group, including the aforementioned Skin & Tan, Super Facialist, Dirty Works and Fish Soho, sold throughout the UK and internationally.
“The integration of Brand Architekts into the group is progressing well and the Warpaint directors continue to believe that the acquisition will be earnings enhancing in the year ending 31 December 2025”, it noted.
For good measure, chairman Clive Garston added: “The board expects the group performance to remain strong and for sales and profits to continue to grow over the remainder of 2025 and beyond.”
And what about those US tariffs? “[They’re] having an impact on our US business, Garston said, “but the US remains a modest part of the group’s overall business, and with significant growth opportunities elsewhere and strategies in place to mitigate their effect, we do not expect tariffs to have a material impact on the financial performance in 2025.
“Accordingly, the board’s expectations for the financial performance in 2025 are unchanged [with] sales and profits to continue to grow over the remainder of 2025 and beyond.”
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