Guess which ASX All Ords share just surged 7% on a wave of rising profits?

This Index of all the usual things (ASX: XAO) posted a solid 0.8% gain today, with a large portion of the gains coming from shares in the ASX All Ords company.

Shares of the online cosmetics and beauty retailer closed at $1.10 on Friday. At the time of writing, shares are changing hands at $1.18 a share in late morning trading on Monday, up 7.3%.

Any types?

If you said Adore Beauty Group Ltd (ASX:ABY), head the virtual classroom.

Today’s improved results follow the publication of Adore Beauty’s financial results for the 12 months ended June 30 (fiscal year 2024).

Read on to learn the most important information.

Adore Beauty share price jumps on earnings growth

• Revenue of $195.7 million, up 7.4% compared to fiscal 2023
• Reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of $4.8 million, up 661% year over year
• EBITDA margin of 2.5%, in line with forecasts
• No debt, cash balance at June 30 was $32.9 million, up 18.3% year-on-year

What else happened to ASX All Ords shares this year?

Investors are buying Adore Beauty shares today, with the company seeing gains across most fundamental metrics.

The ASX All Ords share recorded a 5.8% year-on-year increase in returning customers, reaching a new record of 519,000. Returning customers accounted for 79% of product sales in fiscal 2004.

The number of active customers also increased to 1.6% or 814,000 over the 12 months.

Customer retention also recorded a new record of 64.7%. The ASX All Ords share attributed the improved customer retention to an 8.6% increase in loyalty members over the year. Adoption of the Adore mobile app increased by 48.6% over the financial year and now accounts for 28.4% of sales.

And Adore Beauty’s investments in branding and above-the-line marketing appear to be paying off. The company said brand awareness among its core demographic has risen to a record 71%, up from 62% during the same period last year.

What did the board say?

Commenting on today’s results, which propelled the ASX All Ords shares higher, outgoing CEO Tamalin Morton said:

Adore Beauty’s loyal, returning customer base continues to drive revenue growth, accounting for nearly 80% of all product sales and helping to improve basket values ​​and annual spend per active customer…

In addition to revenue growth, operational efficiency and operational leverage improved profitability. Our marketing was more effective – expenses were down 3% compared to last year, while sales, customer base and brand awareness increased.

We also grew our retail media business, which generated approximately $4 million in revenue in fiscal year 2024.

Morton added that Adore Beauty “continues to expand our product offering, which now includes over 300 brands, to provide our customers with a compelling beauty and wellness offering.”

What next for ASX All Ords shares?

In looking at the potential drivers for the ASX All Ords share price over the coming year, the company said it had a strong start to the year, with revenue in the first seven weeks of FY2025 up 7.0% compared to the same period in FY2024.

Warning that conditions were likely to remain challenging, management said: “Adore Beauty’s clear growth strategy ensures the business is well positioned to increase revenue, active customers, market share and profitability.”

The Company expects to achieve an EBITDA margin of 4% to 5% in fiscal year 2025, compared to 2.5% in fiscal year 2024.

New CEO Sacha Laing will take over on 1 October.

Adore Beauty Stock Price Summary

Including today’s gain in the Adore Beauty share price, the ASX All Ords stock is up 16% in 12 months.