Warpaint London expects colourful year as result continue to fly

By

Nigel TAYLOR

Published
Jun 15, 2023

The record start to the financial year for Warpaint London has continued into Q2, the specialist colour cosmetics supplier said Thursday. So much so, the owner of the W7 and Technic brands now expects its full year 2023 performance to be “significantly ahead of its prior expectations”.

Sales for the five months to 31 May were 45% ahead of the same period last year, at £29.7 million from £20.5 million, while margins also continued to be “robust" and ahead of those achieved in 2022.

While there was no mention of online sales in the new update, they had been accelerating at a fast pace, up 159% on 2021 but still only accounted for 2.7% of total sales.

And the company still has the comfort of continuing to be cash generative, maintaining a strong balance sheet with cash balances as of 31 May totalling £7.5 million, up from £2.7 million a year ago. The company also has no debt.

Its key W7 brand has continued its expansion via UK supermarkets giant Tesco, and is now sold in over 1,400 of its stores. It's looking to add further moves into more Boots stores from the initial 80 that it entered in February. Further product expansion is also expected in the US, including W7 products now being stocked in over 1,200 Five Below stores plus in new accounts including CVS, and in China online, following the launch of W7 brand’s digital stores.