Revolution Beauty Group PLC (AIM:REVB) said it expects to make a first-half loss due to low revenue growth as inflation, supply chain issues and the war in Ukraine pose "short-term challenges".
Shares of the company slumped 53.80% to 28.36p on the news in London.
For the full year to February 2023, the beauty company said it now expects between £215mln and £225mln of net sales and adjusted EBITDA of between £18-£20mln.
As a result of "additional time required" to complete the company's audit, the multi-channel beauty retailer will now report its final results for the past year on August 30, 2022.
According to a trading update, "management is not aware of any material issues" raised by the auditors so far.
The personal care products maker, which has products in 15,000 stores worldwide, said two of its key growth markets, Russia and Ukraine, immediately ceased trading from end-February, negatively impacting annualised revenue by £9mln.
Moreover, US retailers adopted temporary changes to their sales and buying strategies to reset stock levels, which also impacted sales, with reduced stockholdings by digital partners and rising logistics and freight costs also contributing to the challenges
"We expect buying strategies to normalise as we move into the second half," said the company.
It expects the second half will be bolstered by significantly higher retailer distribution than before.
"While the group has been impacted by near-term economic and political headwinds, we remain confident in the strength of our long-term strategy and the significant growth opportunities open to us," said Adam Minto, chief executive.
"This has been a period in which we have strengthened our market position and built sales across geographies, despite the unprecedented macro-economic backdrop. We secured a second UK retail partner with Boots and launched into 2,800 Walgreen stores."