Olaplex : Earnings PresentationPDF Q1 2025

Published: 2025-05-08 09:43:33 ET OLPX

Published on 05/08/2025 at 09:43

DISCLAIMER

Market and Industry Data Looking

This presentation includes market and industry data and forecasts that the Company has derived from independent consultants, publicly available information, various industry publications, other published industry sources and the Company's internal data and estimates. While independent consultant reports, industry publications and other published industry sources generally indicate that the information contained therein was obtained from sources believed to be reliable, the Company has not independently verified such information. The Company's internal data and estimates are based upon information obtained from trade and business organizations and other contacts in the markets in which the Company operates and management's understanding of industry conditions. Although the Company believes that such information is reliable, the Company has not had this information verified by any independent sources. Similarly, the Company's internal research is based upon management's understanding of industry conditions, and such information has not been verified by any independent sources. To the extent that any estimates underlying such market-derived information and other factors are incorrect, actual results may differ materially from those expressed in the independent parties' estimates and in the Company's estimates.

Non-GAAP Financial Measures

This presentation contains "non-GAAP financial measures," including adjusted gross profit, adjusted gross profit margin, adjusted EBITDA, adjusted EBITDA margin, and adjusted SG&A. These are financial measures that are not calculated or presented in accordance with generally accepted accounting principles in the United States ("GAAP") and may exclude items that are significant in understanding and assessing the Company's financial results. Therefore, these measures should not be considered in isolation or as an alternative to measures of profitability, liquidity or performance under GAAP. You should be aware that the Company's presentation of these measures may not be comparable to similarly titled measures used and may be calculated differently. Please refer to the Appendix to this presentation for a reconciliation of these non-GAAP metrics to their most directly comparable financial measure stated in accordance with GAAP.

This presentation includes forward-looking guidance for adjusted EBITDA margin and adjusted gross profit margin. The Company is not able to provide, without unreasonable effort, a reconciliation of the guidance for adjusted EBITDA margin and adjusted gross profit margin to the most directly comparable GAAP measure because the Company does not currently have sufficient data to accurately estimate the variables and individual adjustments included in the most directly comparable GAAP measure that would be necessary for such reconciliations, including (a) costs related to potential debt or equity transactions and (b) other non-recurring expenses that cannot reasonably be estimated in advance. These adjustments are inherently variable and uncertain and depend on various factors that are beyond the Company's control and as a result it is also unable to predict their probable significance. Therefore, because management cannot estimate on a forward-looking basis without unreasonable effort the impact these variables and individual adjustments will have on its reported results in accordance with GAAP, it is unable to provide a reconciliation of the non-GAAP measures included in its fiscal year 2025 guidance.

Q1 2025 EARNINGS

AMANDA BALDWIN

Chief Executive Officer

Bonds and Beyond: 2025 focus

No.1 Generate Brand Demand No.2 Harness Innovation

No.3 Execute with Excellence

No.1 Generate Brand Demand

No.2 Harness Innovation

No.4 & No.5FINE

2X VOLUME

2X STRENGTH

Innovation

Go-To-Market

Joint Business Planning

Integrated Business

Planning

No.3 Execute with Excellence

Q1 2025 EARNINGS

CATHERINE DUNLEAVY

Chief Operating Officer & Chief Financial Officer

First Quarter 2025 Results

Specialty Retail

+12.0%

Professional

-10.9%

Direct to Consumer

-7.2%

Channel Sales

Net Sales

Net sales

to $97.0M

All figures compared to first quarter 2024. 10

Q1 2025 EARNINGS

First Quarter 2025 Results

71.9%

vs 74.3%

Adjusted Gross Profit Margin1

$48.0M

$40.4M

SG&A

$44.3M

$37.2M

Adjusted SG&A1

Gross Profit Margin

69.5%

All figures compared to first quarter 2024.

1. Adjusted Gross Profit Margin and Adjusted SG&A are non-GAAP financial measures. Please refer to the Appendix for additional information on these non-GAAP financial measures, including reconciliations to the most directly comparable GAAP measures.

Q1 2025 EARNINGS

First Quarter 2025 Results

Net Income

$0.5M

vs $7.7M

Diluted EPS

$0.00

vs $0.01

Adjusted EBITDA1

$25.7M

vs $35.5M

Adj. EBITDA Margin1

26.5%

vs 35.9%

All figures compared to first quarter 2024.

1. Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. Please refer to the Appendix for additional information on these non-GAAP financial measures, including reconciliations to the

most directly comparable GAAP measures. 12

Q1 2025 EARNINGS

First Quarter 2025 Financial Position

Cash Flows from Operations

($2.9M)

vs $43.7M

3 months ended March 31, 2025 vs

3 months ended March 31, 2024

Cash and Cash Equivalents

$580.9M

vs $586.0M

March 31, 2025 compared to

December 31, 2024

Cash and Cash Equivalents, and Cash Flows from Operations

$642.4M

vs $643.7M

March 31, 2025 compared to

December 31, 2024

Long-Term Debt

(Net of current portion and deferred fees)

Inventory

$79.2M

March 31, 2025 compared to

December 31, 2024

Q1 2025 EARNINGS

Fiscal Year 2025 Guidance

$410 to

$431M

-3% to +2%

Compared to fiscal year 2024

Net Sales

70.5%

to 71.5%

Adjusted Gross Profit Margin1

20% to 22%

Adjusted EBITDA Margin1

1. Adjusted Gross Profit Margin & adjusted EBITDA Margin are non-GAAP financial measures. The Company is not able to provide, without unreasonable effort, a reconciliation of the guidance for adjusted gross profit margin and adjusted EBITDA margin to the most directly comparable GAAP measure because the Company does not currently have sufficient data to accurately estimate the variables and individual adjustments included in the most directly comparable GAAP measure that would be necessary for such reconciliations, including (a) costs related to potential debt or equity transactions & (b) other non-recurring expenses that cannot reasonably be estimated in advance. These adjustments are inherently variable and uncertain and depend on various factors that are beyond the Company's control and as a result it is also unable to predict their probable significance. Therefore, because management cannot estimate on a forward-looking basis without unreasonable effort the

impact these variables & individual adjustments will have on its reported results in accordance with GAAP, it is unable to provide a reconciliation of the non-GAAP financial measures included in its fiscal year 2025 guidance. 14

Q1 2025 EARNINGS

Thank you

Appendix

NON-GAAP RECONCILIATION

Adjusted EBITDA ($MM) Adjusted SG&A ($MM)

For the Three Months Ended March 31,

2025

2024

2025

2024

Net Income

* $ 8

SG&A

Depreciation and amortization of intangible assets

13 14

Share-based compensation

(3)

Interest expense, net

8 8

Certain litigation related expenses1

(1)

Income tax provision

* 3

Executive reorganization costs2

Share-based compensation

3 3

Adjusted SG&A

Certain litigation related expenses1

1 -

Executive reorganization costs2

- *

Adjusted EBITDA

26 $ 36

Adjusted EBITDA margin

26.5 % 35.9 %

Numbers may not foot due to rounding

Represents litigation costs related to the Lilien securities class action. The Company considers litigation costs related to the Lilien securities class action, as described in Note 12 to the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2025, to be non-recurring and non-ordinary. While the Company has not previously adjusted for these costs because the amounts incurred in 2024 were not material, commencing with the three months ended March 31, 2025, the Company has included an adjustment for these costs as a result of the court's denial of the Company's motion to dismiss in February 2025. The Company believes adjusting for such costs in the presentation of its adjusted EBITDA, adjusted EBITDA margin and adjusted SG&A provides investors with meaningful information regarding the Company's core operating performance.

Represented benefit payments associated with the departure of the Company's Chief Executive Officer that occurred in the year ended December 31, 2023 and the Chief Operating Officer that occurred in the year ended December 31, 2022.

*Amounts for this period were less than $500 thousand dollars, and round to zero in this presentation.

Q1 2025 EARNINGS 17

NON-GAAP RECONCILIATION

Adjusted Gross Profit ($MM)

For the Three Months Ended March 31,

2025 2024

Gross Profit

67 $

Amortization of patented

formulations 2 2

Adjusted Gross Profit

$ 70

$ 73

Adjusted Gross Profit Margin

71.9 %

74.3 %

Numbers may not foot due to rounding

Q1 2025 EARNINGS 18

Disclaimer

Olaplex Holdings Inc. published this content on May 08, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2025 at 13:42 UTC.