On November 7, 2023, Olaplex Holdings Inc (OLPX, Financial) announced its financial results for the third quarter ended September 30, 2023. The company reported a decrease in net sales, net income, and adjusted net income compared to the same period in 2022.
Financial Performance
For Q3 2023, Olaplex Holdings Inc (OLPX, Financial) reported net sales of $123.6 million, a decrease of 30% compared to Q3 2022. The company's net income was $20.4 million, down 66.5% from the same period in 2022. Adjusted net income for Q3 2023 was $33.4 million, a decrease of 54.5% compared to Q3 2022. Diluted EPS was $0.03 for Q3 2023, compared to $0.09 for Q3 2022. Adjusted Diluted EPS was $0.05 for Q3 2023, compared to $0.11 for Q3 2022.
Balance Sheet Overview
As of September 30, 2023, Olaplex Holdings Inc (OLPX, Financial) had $429.6 million in cash and cash equivalents, an increase from $322.8 million as of December 31, 2022. The company's inventory at the end of Q3 2023 was $112.8 million, compared to $144.4 million at the end of 2022. Long-term debt, net of current portion and deferred debt issuance costs, was $650.4 million as of September 30, 2023, compared to $654.3 million as of the end of 2022.
Fiscal Year 2023 Guidance
Olaplex Holdings Inc (OLPX, Financial) updated its guidance for fiscal year 2023. The company now expects net sales to be between $450 million and $460 million, adjusted net income to be between $100 million and $108 million, and adjusted EBITDA to be between $166 million and $174 million.
Company's Commentary
Interim CEO J.P. Bilbrey commented on the results, stating,
Our third quarter results and the encouraging early indicators from our increased investments support our belief that we are making solid progress towards stabilizing our sales trend in the second half of 2023. We remain excited about the untapped opportunities ahead of OLAPLEX and are implementing changes that we believe will position the brand for long-term profitable growth."
Looking Ahead
Despite the decrease in net sales and income, Olaplex Holdings Inc (OLPX, Financial) remains optimistic about its future. The company is making strategic investments and implementing changes aimed at driving long-term growth and stabilizing sales trends. Investors and stakeholders are advised to keep a close eye on the company's performance in the coming quarters.
Explore the complete 8-K earnings release (here) from Olaplex Holdings Inc for further details.
