Half Year 2026 Adore Beauty Group Ltd Earnings Call Transcript
Key Points
- Adore Beauty Group Ltd (ASX:ABY) reported record underlying EBITDA of $4.1 million, up 14.5% from the previous year.
- Revenue increased by 8.7% to $111.9 million, with new customer growth accelerating by 21.8%.
- The company successfully opened 10 new retail stores in the first half of FY26, with plans for additional openings.
- Marketing efficiency improved significantly, with customer acquisition costs more than halving.
- The iKOU brand showed strong revenue and profit growth, supporting long-term profitability targets.
- Gross margin decreased by 120 basis points due to the promotional period in November and December.
- The company faces margin pressures from overperformance during Black Friday and Cyber Monday.
- Higher inventory levels were noted, reflecting supply closures and in-store stock requirements.
- The company is exploring funding options to support its growth strategy, indicating potential financial constraints.
- The competitive dynamics in the market remain challenging, though the company believes it is holding market share.
Thank you for standing by, and welcome to the Adore Beauty Group H1 FY26 results conference call. (Operator Instructions)
I would now like to hand the conference over to Mr. Sacha Laing, CEO. Please go ahead.
Thank you. Good morning, everybody. My name is Sacha Laing, CEO of Adore Beauty Group. I'm joined today by our new CFO, Marcus Crowe. Thank you for joining us today as we present Adore Beauty's results for the 26 weeks to the ending December 28, 2025, and we look forward to meeting many of you over the next few days.
The group has had a strong start to FY2, with our maturing omnichannel strategy delivering customer revenue and profit growth in a challenging retail environment. Record underlying profit was driven by operating leverage, disciplined cost management and growing owned brands.
Highlights of our half-one FY26 results include record underlying EBITDA of $4.1 million on a pre-AASB 16 basis, up 14.5% over the previous year at a margin of 3.7%. This is
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