The All Ordinaries Index (ASX: XAO) is up a healthy 0.8% today, with one ASX All Ords stock doing a lot of the heavy lifting.
Shares in the online beauty and cosmetics retailer closed on Friday at $1.10. At the time of writing, in late morning trade on Monday, shares are changing hands for $1.18 apiece, up 7.3%.
Any guesses?
If you said Adore Beauty Group Ltd (ASX: ABY), go to the head of the virtual class.
Today's outperformance comes following the release of Adore Beauty's financial results for the 12 months ended 30 June (FY 2024).
Read on for the highlights.
Adore Beauty share price leaps on earnings boost
- Revenue of $195.7 million, up 7.4% from FY 2023
- Reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of $4.8 million, up 661% year on year
- EBITDA margin of 2.5%, in line with guidance
- No debt with a cash balance of $32.9 million as at 30 June, up 18.3% from last year
What else happened with the ASX All Ords stock during the year?
Investors are snapping up Adore Beauty shares today with the company achieving growth across most core metrics.
The ASX All Ords stock reported a 5.8% year on year increase in returning customers, reaching a new record of 519,000. These returning customers accounted for 79% of FY 204 product sales.
Active customer numbers were also on the rise, increasing by 1.6%, or 814,000 over the 12 months.
Customer retention also notched a new record figure at 64.7%. The ASX All Ords stock credited the improved customer retention figures to the 8.6% growth in its loyalty members over the year. Adore's mobile app adoption soared 48.6% over the financial year and now represents 28.4% of sales.
And Adore Beauty's investments in brand and above the line marketing activity looks to have paid off. The company reported that brand awareness in its core demographic group improved to a record 71%, up from 62% for the same period last year.
What did management say?
Commenting on the results sending the ASX All Ords stock charging higher today, outgoing CEO Tamalin Morton said:
Adore Beauty's loyal, returning customer base continues to underpin our revenue growth, contributing almost 80% of all product sales and driving improvements in basket sizes and annual spend per active customer…
Alongside revenue growth, operational efficiency and operating leverage have improved profitability. Our marketing has been more effective – with expenditure down 3% on last year, whilst our sales, customer base and brand awareness have all grown.
We've also developed the retail media arm of our business, which represented circa $4 million in revenue in FY 2024.
Morton added that Adore Beauty is "continuing to expand our product range, now with over 300 brands, to ensure we have a compelling beauty and wellness proposition for our customers."
What's next for the ASX All Ords stock?
Looking at what could impact the ASX All Ords stock in the year ahead, the company said it's off to a strong start, with revenue in the first seven weeks of FY 2025 up 7.0% compared to the same period in FY 2024.
While cautioning that conditions are expected to remain challenging, management said, "Adore Beauty's clear growth strategy ensures it is well positioned to increase revenue, active customers, market share and profitability."
The company is targeting an EBITDA margin of 4% to 5% in FY 2025, compared to the 2.5% achieved in FY 2024.
New CEO Sacha Laing takes over the reins on 1 October.
Adore Beauty share price snapshot
With today's Adore Beauty share price boost factored in, the ASX All Ords stock is up 16% over 12 months.
