Hair Care Specialist Olaplex Achieves Impressive Quarterly Results as New Public Company
Olaplex Holdings, the science and technology-driven hair care company that launched an IPO last month and is listed on the Nasdaq
The Global Select Market level of the broader Nasdaq exchange today reported strong results for the third quarter and the nine months ended September 30. The IPO raised $ 1.5 billion after selling 73.7 million shares at $ 21.
In the quarter, net sales increased 81% to $ 161.6 million from $ 89.4 million in the third quarter of 2020, reflecting strong growth across all distribution channels driven by the increased speed of sales. existing products, launching new products and adding new customers. , both in the United States and abroad. Net sales for the nine months jumped 128.4% to $ 431.8 million from $ 189 million.
Professional channel in the third quarter grew 57.6% to $ 75.0 million, or 46.4% of net sales, specialty retail increased 128.1% to $ 46.3 million, or 28.7% of net sales and the direct-to-consumer segment increased 86.9% to $ 40.3 million. , or 24.9% of net sales.
Third-quarter gross margin increased 103% to $ 127.5 million, from $ 62.7 million during the same period in 2020. For nine months, gross profit jumped 224.6 % to $ 341.6 million, compared to $ 105.2 million for the 2020 period.
Gross margin increased 870 basis points to 78.9%. Adjusted gross profit increased 78% to $ 129.2 million, representing an adjusted gross margin of 79.9%. This compares to adjusted gross profit of $ 72.6 million, or adjusted gross margin of 81.2%, in the third quarter of 2020.
Olaplex’s net income jumped 99.9% to $ 56.6 million, or $ 0.08 per diluted share, from $ 28.3 million or $ 0.04 per diluted share in the third quarter of 2020 For the nine months, net income increased from $ 5,890 to $ 151.4 million in fiscal 2020. period.
Adjusted net income was $ 74.4 million, or $ 0.11 per diluted share in the third quarter of 2021, compared to adjusted net income of $ 45.8 million, or $ 0.07 per share diluted in the third quarter of the previous year. Adjusted net income for the nine months was $ 204.2 million, compared to $ 85.1 million, a 140% increase from 2020.
Adjusted EBITDA increased 63.3% to reach $ 106.8 million, or 66.1% of net sales, compared to $ 65.4 million or 73.1% in the third quarter of 2020. Adjusted EBITDA in the third quarter of this year suffered a negative impact of $ 4.3 million, or 265 basis points, expressed as a percentage of revenue, due to incremental costs related to the accelerated vesting of unit awards cash-settled unit awards and revaluation of unvested cash-settled unit awards for non-management employees due to the valuation of the company at the time of the initial public offering.
Adjusted EBITDA for the nine months increased 123.4% to $ 298.1 million from $ 133.4 million for the prior year period.
“All of the key metrics were strong,” said JunE Wong, President and CEO of Olaplex. “The momentum is there. The hair is no longer an instant, it is a movement. We’re still going to focus on the long game and focus on our hearts. Initially, I spent a lot of time looking at the stock price. The share price is not an indication of our day-to-day activities. “
The IPO will give Olaplex the opportunity to explore options for new products. Wong said the company has set up a transformation team to help them decide where they can play and win. The CEO said there is still a lot of headroom and track with hearing care, so Olaplex will be very disciplined and focused in this area.
The company recently launched No. 4P, a purple toning shampoo specially formulated for blondes. “Most purple shampoos tend to only lighten,” Wong said, noting that the shampoo adds hydration and repair while the sulfate-free formula offers customizable blonde maintenance, neutralizing brassiness and lightening the color of hair. hair.
Olaplex has paved the way for a new category of hair care called bonding, which is about protecting, strengthening, and rebuilding broken bonds in hair during and after hair services. The brand’s products contain a patent-protected active ingredient that works at the molecular level to protect and repair hair from damage.
“A few years ago, Harris did a survey asking consumers if they’d rather have a bad day for their hair or a bad day for their skin. They preferred a bad skin day because you can cover it with makeup. Plus, hair isn’t gender specific, ”Wong said, noting that men are just as obsessed with their locks as women are.