Olaplex -OLAPLEX Reports Fourth Quarter and Fiscal Year 2024 Results

Core Viewpoint - Olaplex Holdings, Inc. reported financial results for Q4 and fiscal year 2024, showing a decline in net sales and net income compared to the previous year, while expressing optimism about future strategies and business transformation efforts [2][5][8]. Financial Results Summary Fourth Quarter 2024 vs. Fourth Quarter 2023 - Net sales decreased by 9.8% to $100.7 million [4] - Gross profit decreased by 13.0% to$ 66.8 million, with a gross profit margin of 66.3% [4] - Net loss was $8.8 million compared to a net income of$ 14.1 million in Q4 2023, representing a 162.4% decrease [4][5] - Adjusted net income decreased by 65.8% to $7.6 million [4][5] - Adjusted EBITDA decreased by 51.4% to$ 17.5 million, with an adjusted EBITDA margin of 17.4% [4][5] Fiscal Year 2024 vs. Fiscal Year 2023 - Net sales decreased by 7.8% to $422.7 million [6] - Gross profit decreased by 8.3% to$ 292.3 million, with a gross profit margin of 69.2% [6] - Net income decreased by 68.3% to $19.5 million [6] - Adjusted net income decreased by 30.1% to$ 75.7 million [6] - Adjusted EBITDA decreased by 25.6% to $129.7 million, with an adjusted EBITDA margin of 30.7% [6] Balance Sheet Overview - As of December 31, 2024, cash and cash equivalents increased to$ 586.0 million from $466.4 million in 2023 [7] - Inventory decreased to$ 75.2 million from $95.9 million [7] - Long-term debt slightly decreased to$ 643.7 million from $649.0 million [7] Fiscal Year 2025 Guidance - The company expects net sales for fiscal year 2025 to be between$ 410 million and $431 million [9] - Adjusted gross profit margin is projected to be between 70.5% and 71.5% [9] - Adjusted EBITDA margin is expected to be between 20% and 22% [9]