Warpaint London (LSE:W7L) reported a 17.8% decline in first-half revenue to £40.5 million, citing lower consumer spending, cautious ordering by retailers and non-recurring sales recorded in the comparative period.
The recently acquired Barry M brand contributed £2.5 million of revenue during the first half.
Despite the decline in group revenue, gross margin increased to 47.3%. Warpaint ended the period with £20.7 million in cash and no debt and reported an increase in free cash flow.
The company also increased its interim dividend and launched a £2.5 million share buyback programme.
Barry M Contributes £2.5 Million of Revenue
Warpaint continued the integration of Barry M following its acquisition, while also making changes to the sourcing of products sold under the Brand Architekts portfolio.
The company said the re-sourcing programme resulted in higher margins on those products.
During the period, Warpaint expanded retail listings with companies including Rossmann in Germany, Tesco, Superdrug and Tigotà in Italy.
Direct online sales increased 6%.
Warpaint Expects Second-Half Weighted Trading
Management expects the group’s 2026 financial performance to be weighted towards the second half of the year.
Warpaint cited expanded Christmas gifting orders with Walmart and Ulta Beauty, additional store rollouts and growth in ecommerce among the factors expected to contribute to second-half trading.
The company now expects full-year revenue to be towards the lower end of current market forecasts.
Warpaint maintained its expectation that full-year adjusted EBITDA will be within the range of analyst forecasts.
Warpaint Operates Cosmetics and Personal Care Brands
Warpaint London supplies colour cosmetics and personal care products under brands including W7, Technic, Skin & Tan, Super Facialist, Dirty Works, Fish Soho and Barry M.
The group sells through retailers, retail chains and supermarkets in multiple markets and also operates direct-to-consumer ecommerce channels.
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