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

The Beauty Tech Group (LON:TBTG) released its quarterly earnings data on Thursday. The beauty technology company reported GBX 11.80 EPS 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 Price Performance

Shares of TBTG opened at GBX 402 on Friday. The firm has a 50 day simple moving average of GBX 350.86 and a 200-day simple moving average of GBX 324.48. The Beauty Tech Group has a 1-year low of GBX 213 and a 1-year high of GBX 430. The stock has a market cap of £426.93 million and a price-to-earnings ratio of 36.55.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on TBTG. Berenberg Bank upped their price target on The Beauty Tech Group from GBX 550 to GBX 600 and gave the stock a “buy” rating in a report on Thursday. Canaccord Genuity Group assumed coverage on The Beauty Tech Group in a report on Monday, July 27th. They issued a “buy” rating and a GBX 545 target price on the stock. Two analysts have rated the stock with a Buy rating, According to data from MarketBeat, The Beauty Tech Group currently has a consensus rating of “Buy” and a consensus price target 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.