Waldencast Reports Strong Q2 2024 Financial Results
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Waldencast Reports Q2 2024 Financial Results
$63.3 million of Net Revenue Q2 2024
+25.7% net revenue Comparable Growth: +30.9% Obagi Medical and +20.0% Milk Makeup vs Q2 2023
Adjusted EBITDA of $6.3 million, up +64.5% vs Q2 2023
Waldencast plc (NASDAQ: WALD) announced its operating results for Q2 2024. The global multi-brand beauty and wellness platform reported $63.3 million in net revenue, representing a robust growth compared to the previous year. The company is highlighting substantial comparable growth rates of 25.7%, with Obagi Medical leading at +30.9% and Milk Makeup at +20.0% compared to Q2 2023.
Leadership Insights
Michel Brousset, Founder and CEO of Waldencast, expressed satisfaction regarding the ongoing growth, stating, "We are excited to report a continued upward trajectory in our net revenue. The solid figures we’re recording in Q2, paired with the growth of 21% achieved in Q1 2024, reflects our strategic execution and market positioning. We remain optimistic about the second half of the year and are positioned to exceed our FY 2024 outlook, anticipating a comparable growth rate that's higher than our Q2 performance, and an Adjusted EBITDA for H2 2024 that surpasses H1 levels."
Brand Development
Waldencast takes pride in its brands, particularly Milk Makeup and Obagi Medical, which are poised for continued success in their respective markets. In H1 2024, Milk Makeup reported a remarkable 100% year-on-year increase in Earned Media Value (EMV) while Obagi Medical grew its EMV by 165%. Such growth underlines the increasing consumer engagement and brand recognition within the dynamic beauty sector.
Recent product innovations have significantly contributed to the performance. Notably, Milk Makeup's Viral Cooling Jelly Tint and Obagi Medical's Daily Hydro-Drops Rejuvenating Eye Gel Cream have been well received, both leading to rapid sellouts.
Financial Performance Overview
Net Revenue for Q2 2024 reached $63.3 million, up from $49.4 million in Q2 2023, indicating a growth of 28.2% on a net revenue basis. Adjusting for product sales related to the former Obagi Medical China Business, the comparable revenue growth stands at 25.7%. Both brands saw accelerated growth, especially in higher-margin e-commerce sales. However, challenges such as product out-of-stocks affected certain markets.
Gross Profit and Adjusted EBITDA
The gross profit for Q2 2024 was $44.6 million compared to $31.2 million in Q2 2023. The Adjusted Gross Profit margin improved significantly to 75.0% from 68.5% due to enhanced operations and strategic pricing adjustments. Furthermore, the Group’s Adjusted EBITDA for Q2 2024 was recorded at $6.3 million, demonstrating a substantial growth from the previous year’s $3.9 million.
Liquidity and Future Outlook
The business maintained a strong liquidity stance, bolstered by $19.7 million in cash and cash equivalents and $155.0 million in net debt as of June 30, 2024. Waldencast expects to enhance net revenue growth in the latter half of the year with a target of achieving a mid-teens Adjusted EBITDA margin for the full year.
Market Positioning and Community Engagement
With a firm focus on its commitment to high-quality products and consumer engagement, Waldencast is set to launch new exciting initiatives across its brands in upcoming quarters. The company aims to fortify its brand DNA while emphasizing operational effectiveness to drive profitable growth as it continues to expand within the global beauty market.
Frequently Asked Questions
What were Waldencast’s net revenues for Q2 2024?
Waldencast reported net revenues of $63.3 million for Q2 2024.
What is the comparable growth percentage for Waldencast?
The company experienced a comparable growth of 25.7% in Q2 2024.
What is the significance of Milk Makeup's performance?
Milk Makeup achieved a 100% increase in Earned Media Value, showcasing strong consumer demand and brand presence.
What are Waldencast's expectations for the future?
The company anticipates accelerated net revenue growth in H2 2024, exceeding the current rates achieved in Q2.
How does Waldencast plan to enhance its market presence?
Waldencast aims to leverage robust community engagement and product innovation to strengthen its market position globally.
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