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Waldencast (WALD) Q2 FY24 Earnings call transcript Aug 28, 2024

AInvestThursday, Aug 29, 2024 8:33 pm ET
2min read

Waldencast PLC, a leading beauty and wellness company, recently held its second quarter earnings call, showcasing impressive financial results and a clear vision for growth. The company's CEO, Michel Brousset, and CFO, Manuel Manfredi, provided insights into the company's performance, strategic initiatives, and future plans.

Accelerated Growth and Strategic Positioning

Waldencast PLC reported a robust 25.7% comparable growth in the second quarter of 2024, demonstrating the power of its multi-brand platform and the progress towards its vision of becoming a global best-in-class beauty and wellness platform. The company's beauty and skincare brands, Milk Makeup and Obagi Medical, are positioned in the most attractive segments of the beauty market, with Milk Makeup ranking as the 2 clean brand at Sephora U.S. and Obagi Medical as the 1 physician-recommended medical-ready skincare brand.

Milk Makeup's Success Story

Milk Makeup, a cult-favorite Gen Z brand, grew 3x faster than the U.S. Prestige makeup market in the first half of 2024. Its success is attributed to its relevant promise of cool, clean makeup that works and its leadership positions in several international markets. The brand has accomplished this through its commitment to clean, cool, and effective products, resonating with consumers worldwide.

Obagi Medical's Innovative Breakthroughs

Obagi Medical, a leader in professional science-led skincare, outperformed the U.S. Prestige skincare market by a factor of 5x in the first half of 2024. Its breakthrough patented technology and clinically-proven results have unlocked high loyalty from both consumers and physicians, making it the 1 physician-recommended brand for top-ranked patients' needs. Obagi Medical is paving the way for expansion into other categories with its transformative skincare solutions.

Financial Performance and Outlook

The company's financial performance is robust, with a 23.1% increase in net revenue for the first half of 2024 and a significant expansion in adjusted gross margin and adjusted EBITDA. Waldencast PLC expects comparable revenue growth to continue accelerating in the second half of the year, with an adjusted EBITDA margin landing in the mid-teens. This positive outlook is driven by the company's strategic initiatives, operational efficiencies, and investments in sales and marketing growth drivers.

Strategic Growth Initiatives and Future Plans

Waldencast PLC is focused on expanding its multi-brand portfolio, attracting other brands and founders to its platform, and building a global presence. The company's platform, built for scale and speed, is expected to get better as it creates and acquires more brands and scales them profitably and efficiently. The future looks bright for Waldencast PLC, with its unique pure-play beauty ecosystem and its commitment to creating and acquiring high-growth, purpose-driven brands.

In conclusion, Waldencast PLC's earnings call highlighted a company with a clear vision, strong financial performance, and a strategic plan for growth. The success of its brands, Milk Makeup and Obagi Medical, is a testament to its commitment to innovation, quality, and customer satisfaction. With a strong focus on expanding its multi-brand portfolio and building a global presence, Waldencast PLC is poised for continued success in the beauty and wellness industry.

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