Olaplex (US:OLPX)2024-08-06 12:30Net Sales Performance - Net sales decreased by 4.8% to $103.9 million in Q2 2024 compared to Q2 2023, with Specialty Retail increasing by 22.4% to $36.4 million, Professional decreasing by 18.4% to $33.4 million, and Direct-To-Consumer decreasing by 11.5% to $34.1 million[1] - For the six months ended June 30, 2024, net sales decreased by 9.0% to $202.849 million compared to the same period in 2023[3] - Net sales for Q2 2024 were $103.9 million, a decrease from $109.2 million in Q2 2023[17] Net Income and Adjusted Net Income - Net income decreased by 6.1% and adjusted net income decreased by 11.6% in Q2 2024 compared to Q2 2023[1] - Adjusted net income for the six months ended June 30, 2024, decreased by 25.2% to $39.347 million compared to the same period in 2023[3] - Net income for Q2 2024 was $5.8 million, compared to $6.2 million in Q2 2023[17] - Net income for Q2 2024 was $5.8 million, a decrease from $6.2 million in Q2 2023[20] - Adjusted net income for Q2 2024 was $18.8 million, down from $21.2 million in Q2 2023, with adjusted EPS of $0.03[22] Adjusted EBITDA and Margin - Adjusted EBITDA decreased by 12.7% to $32.054 million in Q2 2024 compared to Q2 2023, with an adjusted EBITDA margin of 30.8%[2] - Adjusted EBITDA margin is expected to be in the range of 32.8% to 34.3% for fiscal year 2024[7] - Adjusted EBITDA and adjusted EBITDA margin are used as key non-GAAP financial measures to assess the company's operating performance[13] - The company provided forward-looking guidance for adjusted EBITDA, adjusted EBITDA margin, and other non-GAAP metrics but cannot reconcile them to GAAP measures due to uncertainty[14] - Adjusted EBITDA for Q2 2024 was $32.1 million, down from $36.7 million in Q2 2023, with a margin of 30.8% compared to 33.6% in the prior year[20] Gross Profit and Margin - Gross profit for Q2 2024 was $72.4 million, down from $77.5 million in Q2 2023[17] - Adjusted gross profit margin is anticipated to be in the range of 72.5% to 73.1% for fiscal year 2024, compared to 71.4% in fiscal year 2023[6] - Adjusted gross profit for Q2 2024 was $74.7 million, with a margin of 71.9%, slightly lower than 72.7% in Q2 2023[20] SG&A Expenses - Adjusted SG&A is expected to be in the range of $172 million to $179 million for fiscal year 2024, an increase of $19 million to $26 million compared to fiscal year 2023[7] - Adjusted SG&A expenses for Q2 2024 were $42.6 million, slightly higher than $42.3 million in Q2 2023[21] Cash and Cash Equivalents - The company had $507.9 million in cash and cash equivalents as of June 30, 2024, compared to $466.4 million as of December 31, 2023[4] - Cash and cash equivalents increased to $507.9 million as of June 30, 2024, up from $466.4 million at the end of 2023[16] Assets and Liabilities - Total assets grew to $1.76 billion as of June 30, 2024, compared to $1.74 billion at the end of 2023[16] - Long-term debt decreased slightly to $646.4 million as of June 30, 2024, from $649.0 million at the end of 2023[16] - Inventory increased to $100.2 million as of June 30, 2024, up from $95.9 million at the end of 2023[16] Operating Activities - Net cash provided by operating activities for the first six months of 2024 was $59.9 million, down from $75.1 million in the same period of 2023[18] One-Time Costs and Payments - The company made a one-time $3.5 million payment to a former distributor in the UAE in 2023 to establish a new partnership[22] - Inventory write-off and disposal costs in 2023 were $24,000 due to product reformulation following EU regulation changes[22] - Executive reorganization costs in Q2 2024 were $7,000, related to ongoing benefit payments for former executives[22] Fiscal Year 2024 Guidance - The company reiterated its fiscal year 2024 guidance, expecting net sales between $435 million and $463 million, adjusted net income between $87 million and $100 million, and adjusted EBITDA between $143 million and $159 million[5][6]