The Beauty Tech Group (LON:TBTG) Posts Quarterly Earnings Results

Key Points

• Strong first-half performance: Revenue increased 44.3% to £79.7 million, while adjusted EBITDA rose 53% to £21.3 million as gross margin improved to 64.4%.
• Raised outlook and strong balance sheet: Management lifted full-year adjusted EBITDA guidance to at least £48.5 million, maintained revenue guidance of at least £170 million, and reported £52 million of net cash. A share buyback is planned for the second half.
• Expansion brings execution risks: The company is preparing major product launches, but ZIIP Beauty recorded a £1.5 million stock provision and overall stock provisions rose £2.7 million, creating pressure on margins and second-half cash flow.

The Beauty Tech Group (LON:TBTG - Get Free Report) issued its quarterly earnings data on Thursday. The beauty technology company reported GBX 11.80 earnings per share for the quarter, Digital Look Earnings reports.

Here are the key takeaways from The Beauty Tech Group's conference call:

• Strong first-half growth: Revenue rose 44.3% to £79.7 million and adjusted EBITDA increased 53% to £21.3 million, supported by a 3.6-point improvement in gross margin to 64.4%.
• Management raised full-year adjusted EBITDA guidance to at least £48.5 million while maintaining revenue guidance of at least £170 million. The group ended the period debt-free with £52 million of net cash and plans to begin a share buyback in the second half.
• Growth was broad-based, with revenue increasing across every region; Europe rose 48%, Asia 57%, the U.S. and Canada 37%, and the rest of the world 136%. CurrentBody Skin, representing 89% of group revenue, grew 45% to £71.1 million.
• The company is preparing a major second-half launch program, including its third-generation LED range, expanded ZIIP Beauty products and further Tria Laser products. Management expects the new products to support longer-term growth, but noted operational risks as it transitions from Series 2 to Series 3 and manages retailer inventory.
• ZIIP Beauty recorded a £1.5 million stock provision after the company accelerated its improved product launch, reducing the brand’s reported gross margin to 49.8%. Overall stock provisions increased by £2.7 million in the half, while second-half cash flow will be affected by peak-season inventory and launch-related spending.

The Beauty Tech Group Stock Up 13.7%

The Beauty Tech Group stock opened at GBX 398 on Thursday. The business has a 50-day simple moving average of GBX 349.10 and a two-hundred day simple moving average of GBX 323.23. The company has a market cap of £422.68 million and a P/E ratio of 36.18. The Beauty Tech Group has a 52-week low of GBX 213 and a 52-week high of GBX 414.

Wall Street Analysts Forecast Growth

TBTG has been the subject of a number of research analyst reports. Berenberg Bank lifted their target price on shares of The Beauty Tech Group from GBX 550 to GBX 600 and gave the stock a "buy" rating in a research report on Thursday. Canaccord Genuity Group initiated coverage on shares of The Beauty Tech Group in a research note on Monday, July 27th. They set a "buy" rating and a GBX 545 target price for the company. Two equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company presently has a consensus rating of "Buy" and an average target price of GBX 572.50.

The Beauty Tech Group Company Profile

The Beauty Tech Group is a UK-headquartered beauty technology company focused on developing, marketing and selling clinically backed at-home beauty devices and related skincare products. The group operates a portfolio of category-leading brands, including CurrentBody Skin, ZIIP Beauty and Tria Laser, and offers products built around core aesthetic technologies used in professional settings, including LED light therapy, radio frequency, microcurrent and laser treatments.