Beauty and wellness company BWX says it expects to deliver strong underlying revenue growth based on unaudited internal accounts year to date.
The group owns brands including Sukin, Nourished Life, Flora & Fauna, Go-To, Andalou Naturals and Mineral Fusion.
The business expects underlying revenue to range between $240 and $250 million for this financial year. Underlying EBITDA should range between $34 and $37 million.
The impact of higher operating expenses, ongoing elevated freight and supply chain costs due to Covid and recent acquisition investments failing to meet revenue growth expectations dulled performance during the company’s second half.
Group CEO Rory Gration said the business will achieve approximately $5 million in cost-out initiatives in the next financial year.
“BWX’s in-store revenue performance has accelerated from the first half of the year and the business is supported by strong brands and an ability to scale distribution in key markets and sales channels.
“Initiatives for reducing our cost base are a key priority, supported by improved visibility and cost controls to ensure sustainable revenue growth,” he added.
The group is focused on centralising its digital warehouse in its Clayton manufacturing facility. The new centre boasts automated packing and storage processes and margin benefits from private label manufacturing. Inventory will also likely remain elevated as manufacturing increases but it is expected to normalise in the first half of next year.