Olaplex Clocks 58% Top-Line Growth In Q1; Affirms FY22 Forecast

Olaplex Holdings Inc OLPX reported first-quarter FY22 sales growth of 57.6% year-on-year to $186.2 million, beating the consensus of $172.46 million.
The gross profit increased 50.9% Y/Y to $141.2 million and the gross margin contracted 340 basis points to 75.8%.
Selling, general and administrative expenses increased 97.8% to $22.3 million.
The operating margin was 58.3%, and operating income for the quarter rose 50.6% to $108.6 million.
The company held $143.3 million in cash and equivalents as of March 31, 2022.
Inventory at Q1 end was $117.5 million versus $98.4 million at the end of December 2021.
Adjusted EBITDA increased 47.3%, and the adjusted EBITDA margin contracted 470 basis points to 67.9%.
Adjusted EPS of $0.13 beat the analyst consensus of $0.11.
Outlook: Olaplex re-affirmed its FY22 sales forecast of $796 million - $826 million versus the consensus of $820.38 million.
The company expects FY22 adjusted EBITDA of $504 million - $526 million.
Price Action: OLPX shares are trading higher by 2.80% at $12.50 on the last check Wednesday.