Olaplex (US:OLPX)2025-03-04 12:33Financial Performance - Net sales for Q4 2024 decreased by 9.8% to $100.7 million compared to Q4 2023[5] - Gross profit for Q4 2024 was $66.8 million, down 13.0% from $76.8 million in Q4 2023, with a gross profit margin of 66.3%[5] - Adjusted net income for Q4 2024 was $7.6 million, a decrease of 65.8% compared to $22.3 million in Q4 2023[6] - For the fiscal year 2024, net sales decreased by 7.8% to $422.7 million compared to $458.3 million in 2023[8] - The company reported a net income of $19.5 million for fiscal year 2024, down 68.3% from $61.6 million in 2023[8] - Adjusted EBITDA for the year ended December 31, 2024, was $129.665 million, down from $174.260 million in 2023, reflecting a decrease of approximately 25.5%[31] - Net income for the year ended December 31, 2024, was $19.522 million, a decrease of 68.3% compared to $61.587 million in 2023[29] - The company reported a net loss of $8.800 million for Q4 2024, compared to a net income of $14.101 million in Q4 2023[33] Guidance and Projections - Fiscal year 2025 guidance for net sales is projected between $410 million and $431 million, reflecting a decrease from the previous year's actual sales[11] - Adjusted EBITDA margin for fiscal year 2025 is expected to be between 20% and 22%, down from 30.7% in 2024[11] Cash and Assets - As of December 31, 2024, cash and cash equivalents increased to $586.0 million from $466.4 million in 2023[9] - Cash and cash equivalents at the end of 2024 were $585.967 million, up from $466.400 million at the end of 2023, representing a growth of about 25.5%[29] - Total current assets increased to $689.713 million as of December 31, 2024, from $613.196 million in 2023, reflecting an increase of approximately 12.5%[25] Inventory and Liabilities - Inventory at the end of Q4 2024 was $75.2 million, down from $95.9 million at the end of Q4 2023[9] - Long-term debt as of December 31, 2024, was $643.7 million, slightly down from $649.0 million in 2023[9] - Total liabilities decreased slightly to $893.321 million as of December 31, 2024, from $895.370 million in 2023[25] Expenses - Selling, general, and administrative expenses for the year ended December 31, 2024, were $181.685 million, an increase of 7.5% from $168.942 million in 2023[27] - SG&A expenses for Q4 2024 were $52.869 million, up from $49.172 million in Q4 2023, representing a 5.5% increase[33] Other Financial Metrics - Adjusted EBITDA margin for the year ended December 31, 2024, was 30.7%, compared to 38.0% in 2023, indicating a decline of 7.3 percentage points[31] - Adjusted gross profit margin for the year ended December 31, 2024, was 71.4%, unchanged from 2023[31] - Adjusted net income per share for Q4 2024 was $0.01, down from $0.03 in Q4 2023[33] Special Items - The company incurred a one-time payment of $3.5 million to a former distributor in the UAE during 2023 to establish a new partnership[33] - Amortization of intangible assets (excluding software) for the year ended December 31, 2024, was $50.073 million, slightly up from $49.075 million in 2023[33] - The company recorded organizational realignment costs of $2.920 million in Q4 2023[34] - Inventory write-off and disposal costs were incurred due to reformulation of a product, impacting financials in 2023[34] - The company is focused on global reformulation to streamline product offerings in compliance with regulations[34]