Warpaint London (W7L), a specialist supplier of colour cosmetics and owner of the W7 and Technic brands, has reported strong trading momentum in Q2 2023 following a robust performance during the first quarter. 

Impressively, sales for the five-month period ending on 31 May 2023 surged by 45% compared to the same period last year, reaching £29.7 million (five months to 31 May 2022: £20.5 million). Furthermore, the company's margins have remained resilient and even surpassed the achievements of 2022. The board said that that the group's overall performance for 2023 will surpass previous expectations by a significant margin.

Warpaint's cash flow remains healthy, helping it maintain a strong balance sheet, with net cash at 31 May 2023 standing at £7.5 million (31 May 2022: £2.7 million; 31 December 2022: £5.8 million).
 

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The cosmetics market faced a downturn during the pandemic as reduced face-to-face interactions resulted in decreased demand for beauty products. Post-pandemic, the market has seen a resurgence, with worldwide revenue from cosmetics rebounding to $100.50 billion in 2022, and anticipated to grow at a rate of 6.85% each year through 2022-2026. 

More specifically, the colour cosmetics market is projected to display a CAGR of 5.54% between 2022-2032, while garnering $140 billion. In a similar fashion to the cosmetics market, the success of the colour cosmetics market can be put down to social occasions resuming and consumers returning to offices, with make-up wearing overall becoming more frequent. 

For Warpaint London, its focus on affordable prices may have seen it edge ahead of competitors as the cost of living crisis continued to squeeze budgets. In addition, amid an increasingly health-conscious population, the call for ‘cleaner’ products has been becoming increasingly loud, and Warpaint London has aligned itself well with this market driver, with its products manufactured without parabens and a dedicated vegan range appealing to the health-conscious consumer. 

These market drivers should see continued success for Warpaint London into the remainder of 2023 and beyond. 

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