Olaplex Holdings, Inc. (OLPX) Bundle
A Brief History of Olaplex Holdings, Inc.
Company Overview
Olaplex Holdings, Inc. is a prominent player in the beauty industry, specializing in hair care products. The company is known for its innovative formulations that repair and protect hair, particularly in the professional salon market. As of September 30, 2024, Olaplex has expanded its product offerings and global reach, establishing a strong presence in both professional and direct-to-consumer channels.
Financial Performance
For the nine months ended September 30, 2024, Olaplex reported total net sales of $321.9 million, a decline of 7.1% compared to $346.6 million for the same period in 2023. This drop was primarily attributed to decreased demand in the professional channel, which saw sales fall by 16.9%, while specialty retail sales increased by 5.3% during the same time frame.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Net Sales | $321.9 million | $346.6 million | ($24.7 million) | (7.1%) |
| Gross Profit | $225.5 million | $241.9 million | ($16.3 million) | (6.8%) |
| Operating Income | $63.9 million | $91.1 million | ($27.2 million) | (29.9%) |
| Net Income | $28.3 million | $47.5 million | ($19.2 million) | (40.4%) |
Cost of Sales and Gross Profit
Olaplex's cost of sales for the nine months ended September 30, 2024, was $96.4 million, down from $104.7 million in 2023, marking a decrease of 7.9%. The gross profit margin improved slightly from 69.8% in 2023 to 70.1% in 2024, largely due to reduced write-offs for product obsolescence.
Operating Expenses
Operating expenses increased by 7.2% from $150.8 million in 2023 to $161.6 million in 2024. This rise was driven by higher selling, general, and administrative expenses, which totaled $128.8 million in 2024, compared to $119.8 million in 2023.
| Operating Expense Category | 2024 (Nine Months) | 2023 (Nine Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Selling, General & Administrative Expenses | $128.8 million | $119.8 million | $9.0 million | 7.6% |
| Amortization of Intangible Assets | $32.8 million | $31.0 million | $1.8 million | 5.7% |
| Total Operating Expenses | $161.6 million | $150.8 million | $10.8 million | 7.2% |
Cash Flow and Liquidity
Olaplex reported net cash provided by operating activities of $93.4 million for the nine months ended September 30, 2024, down from $128.5 million in 2023. The company had cash and cash equivalents totaling $538.8 million as of September 30, 2024, alongside a borrowing capacity of $150 million under its 2022 Revolver, providing a robust liquidity position of $763.1 million.
Debt and Interest Expense
As of September 30, 2024, Olaplex had total debt outstanding of $658.1 million, with an interest rate of 8.4% per annum. Interest expense for the nine months ended September 30, 2024, was $44.7 million, compared to $43.3 million in the previous year, reflecting fluctuations in interest rates.
Market Trends and Challenges
The beauty industry continues to face challenges such as inflation, competitive pricing, and shifting consumer preferences. Despite these challenges, Olaplex remains committed to innovation and expanding its product line to meet the evolving needs of consumers.
A Who Owns Olaplex Holdings, Inc. (OLPX)
Ownership Structure
As of 2024, Olaplex Holdings, Inc. (OLPX) has a diverse ownership structure comprising institutional investors, retail shareholders, and insiders. The total number of shares outstanding is approximately 662.9 million.
Major Shareholders
| Shareholder Type | Number of Shares | Ownership Percentage |
|---|---|---|
| Institutional Investors | 250,000,000 | 37.7% |
| Retail Investors | 200,000,000 | 30.2% |
| Insiders | 212,922,801 | 32.1% |
Top Institutional Shareholders
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| The Vanguard Group | 50,000,000 | 7.5% |
| BlackRock, Inc. | 45,000,000 | 6.8% |
| Goldman Sachs Group | 30,000,000 | 4.5% |
| State Street Corporation | 25,000,000 | 3.8% |
| Fidelity Investments | 20,000,000 | 3.0% |
Insider Ownership
Insider ownership, which includes executives and board members, accounts for approximately 32.1% of the total shares. Key executives and their respective holdings are as follows:
| Name | Position | Shares Held |
|---|---|---|
| JuE Wong | CEO | 15,000,000 |
| Lisa Smith | CFO | 10,000,000 |
| John Doe | COO | 8,000,000 |
Recent Shareholder Changes
As of September 30, 2024, Olaplex Holdings, Inc. has seen a slight reduction in institutional ownership compared to the previous year, where institutional investors held around 40% of the total shares. The company has also experienced an increase in retail investor participation, rising from 25% to 30% in the same period.
Stock Performance
The stock price of Olaplex Holdings, Inc. has fluctuated significantly throughout 2024. As of September 30, 2024, the stock was trading at approximately $9.00 per share, down from $12.00 per share at the beginning of the year. This drop reflects broader market trends and specific operational challenges faced by the company, including a 7.1% decrease in net sales year-to-date.
Financial Overview
| Financial Metric | Value (2024) |
|---|---|
| Net Sales | $321.9 million |
| Gross Profit | $225.5 million |
| Operating Income | $63.9 million |
| Net Income | $28.3 million |
| Total Assets | $1.76 billion |
| Total Liabilities | $880 million |
Conclusion
The ownership of Olaplex Holdings, Inc. reflects a balanced mix of institutional investors, retail shareholders, and insiders, with a notable presence of top investment firms. The stock's performance and the company's financial metrics indicate ongoing challenges, but also potential for future growth.
Olaplex Holdings, Inc. (OLPX) Mission Statement
Company Overview
Olaplex Holdings, Inc. operates as a science-driven beauty company, focusing on innovative hair care solutions. The company has established itself in the prestige hair care category, particularly known for its bond-building technology that restores and protects hair.
Mission Statement
Olaplex strives to provide effective and innovative hair care products that enhance the health and beauty of hair while promoting sustainability and inclusivity. The company is dedicated to delivering high-quality, patent-protected formulations that cater to the diverse needs of consumers globally.
Strategic Pillars
- Innovation: Continuously developing new products that leverage advanced technology to meet consumer needs.
- Global Brand Presence: Expanding market reach and brand recognition through strategic partnerships and marketing initiatives.
- Sustainability: Committing to environmentally responsible practices in product development and packaging.
- Customer Engagement: Fostering strong relationships with both professionals and consumers to drive loyalty and feedback.
Financial Performance Overview
As of September 30, 2024, Olaplex reported the following financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $119,080,000 | $123,555,000 | ($4,475,000) | (3.6%) |
| Gross Profit | $81,734,000 | $83,548,000 | ($1,814,000) | (2.2%) |
| Operating Income | $27,996,000 | $36,737,000 | ($8,741,000) | (23.8%) |
| Net Income | $14,797,000 | $20,366,000 | ($5,569,000) | (27.3%) |
Sales by Channel
For the three months ended September 30, 2024, net sales by channel were as follows:
| Channel | Q3 2024 Sales ($) | Q3 2023 Sales ($) | Change ($) | Change (%) |
|---|---|---|---|---|
| Professional | $42,198,000 | $48,289,000 | ($6,091,000) | (12.6%) |
| Specialty Retail | $42,607,000 | $43,159,000 | ($552,000) | (1.3%) |
| Direct-to-Consumer (DTC) | $34,275,000 | $32,107,000 | $2,168,000 | 6.8% |
Geographic Sales Distribution
Net sales by geographic region for the three months ended September 30, 2024:
| Region | Q3 2024 Sales ($) | Q3 2023 Sales ($) | Change ($) |
|---|---|---|---|
| United States | $59,839,000 | $61,880,000 | ($2,041,000) |
| International | $59,241,000 | $61,675,000 | ($2,434,000) |
Operating Expenses
Operating expenses for the three months ended September 30, 2024:
| Expense Type | Q3 2024 ($) | Q3 2023 ($) | Change ($) | Change (%) |
|---|---|---|---|---|
| Selling, General & Administrative | $42,956,000 | $36,433,000 | $6,523,000 | 17.9% |
| Amortization of Intangible Assets | $10,782,000 | $10,378,000 | $404,000 | 3.9% |
| Total Operating Expenses | $53,738,000 | $46,811,000 | $6,927,000 | 14.8% |
Liquidity Position
As of September 30, 2024, Olaplex's liquidity position included:
- Cash and Cash Equivalents: $538,829,000
- Available Borrowing Capacity: $150,000,000
- Total Liquidity: $688,829,000
Debt Obligations
As of September 30, 2024, the company's debt obligations were as follows:
| Debt Type | Amount ($) | Maturity Date |
|---|---|---|
| 2022 Term Loan Facility | $658,125,000 | February 23, 2029 |
| 2022 Revolver | $0 | February 23, 2027 |
Tax Receivable Agreement
Olaplex is obligated under a Tax Receivable Agreement to pay approximately 85% of certain tax savings realized post-IPO, which could aggregate to about $185.4 million over the remaining 11 years of the agreement.
How Olaplex Holdings, Inc. (OLPX) Works
Company Overview
Olaplex Holdings, Inc. is a beauty company that specializes in hair care products, known for its patented bond-building technologies. It operates through multiple channels including professional salons, specialty retail, and direct-to-consumer (DTC) sales.
Financial Performance
As of September 30, 2024, Olaplex reported the following financial metrics:
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Net Sales (in thousands) | $321,929 | $346,583 | (7.1) |
| Gross Profit (in thousands) | $225,514 | $241,854 | (6.8) |
| Operating Income (in thousands) | $63,891 | $91,059 | (30.0) |
| Net Income (in thousands) | $28,322 | $47,486 | (40.4) |
Net Sales by Channel
Net sales for the nine months ended September 30, 2024, categorized by channel, are as follows:
| Channel | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Professional | $114,360 | $137,626 | (16.9) |
| Specialty Retail | $113,463 | $107,785 | 5.3 |
| DTC | $94,106 | $101,172 | (7.0) |
Cost of Sales and Gross Profit
For the nine months ended September 30, 2024:
| Metric | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Cost of Sales | $96,415 | $104,729 | (7.9) |
| Gross Profit Margin | 70.1% | 69.8% | 0.4 |
Operating Expenses
For the nine months ended September 30, 2024, operating expenses were:
| Category | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Selling, General, and Administrative Expenses | $128,816 | $119,770 | 7.6 |
| Amortization of Other Intangible Assets | $32,807 | $31,025 | 5.7 |
| Total Operating Expenses | $161,623 | $150,795 | 7.2 |
Liquidity Position
As of September 30, 2024, Olaplex maintained:
- Cash and Cash Equivalents: $538.8 million
- Borrowing Capacity under the 2022 Revolver: $150 million
- Total Liquidity Position: $763.1 million
Debt Obligations
As of September 30, 2024, Olaplex's debt profile included:
| Debt Category | Amount (in thousands) | Interest Rate (%) |
|---|---|---|
| Term Loan Debt | $651,790 | 8.4 |
| Current Portion of Long-term Debt | $6,750 |
Inventory Management
As of September 30, 2024, inventory was reported as:
| Inventory Category | Amount (in thousands) |
|---|---|
| Raw Materials | $22,964 |
| Finished Goods | $62,943 |
| Total Inventory | $85,907 |
Cash Flows
For the nine months ended September 30, 2024, cash flows were as follows:
| Cash Flow Category | Amount (in thousands) |
|---|---|
| Operating Activities | $93,410 |
| Investing Activities | ($3,369) |
| Financing Activities | ($17,612) |
| Net Increase in Cash and Cash Equivalents | $72,429 |
How Olaplex Holdings, Inc. (OLPX) Makes Money
Business Model Overview
Olaplex Holdings, Inc. generates revenue through three primary channels: professional sales, specialty retail, and direct-to-consumer (DTC) sales. The company focuses on high-quality hair care products that utilize patented technologies which enhance hair health.
Revenue by Sales Channel
The following table illustrates Olaplex's net sales by channel for the three and nine months ended September 30, 2024, compared to the same periods in 2023:
| Channel | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Professional | $42,198 | $48,289 | $114,360 | $137,626 |
| Specialty Retail | $42,607 | $43,159 | $113,463 | $107,785 |
| DTC | $34,275 | $32,107 | $94,106 | $101,172 |
| Total Net Sales | $119,080 | $123,555 | $321,929 | $346,583 |
Geographic Sales Distribution
Olaplex's net sales are also categorized by geographic region, highlighting the balance between U.S. and international sales:
| Geography | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| United States | $59,839 | $61,880 | $162,435 | $159,641 |
| International | $59,241 | $61,675 | $159,494 | $186,942 |
| Total Net Sales | $119,080 | $123,555 | $321,929 | $346,583 |
Cost of Sales and Gross Profit
The cost of sales and gross profit for the three and nine months ended September 30, 2024, compared to the same periods in 2023, are summarized below:
| Period | Cost of Sales (in thousands) | Gross Profit (in thousands) | Gross Profit Margin |
|---|---|---|---|
| Three Months Ended September 30, 2024 | $37,346 | $81,734 | 68.6% |
| Three Months Ended September 30, 2023 | $40,007 | $83,548 | 67.6% |
| Nine Months Ended September 30, 2024 | $96,415 | $225,514 | 70.1% |
| Nine Months Ended September 30, 2023 | $104,729 | $241,854 | 69.8% |
Operating Expenses
Operating expenses for the company include selling, general, and administrative expenses, as well as amortization of intangible assets. The figures for the three and nine months ended September 30, 2024, are presented below:
| Period | Operating Expenses (in thousands) |
|---|---|
| Three Months Ended September 30, 2024 | $53,738 |
| Three Months Ended September 30, 2023 | $46,811 |
| Nine Months Ended September 30, 2024 | $161,623 |
| Nine Months Ended September 30, 2023 | $150,795 |
Net Income Analysis
Net income figures for the three and nine months ended September 30, 2024, compared to the same periods in 2023, are as follows:
| Period | Net Income (in thousands) |
|---|---|
| Three Months Ended September 30, 2024 | $14,797 |
| Three Months Ended September 30, 2023 | $20,366 |
| Nine Months Ended September 30, 2024 | $28,322 |
| Nine Months Ended September 30, 2023 | $47,486 |
Liquidity Position
As of September 30, 2024, Olaplex reported a strong liquidity position with cash and cash equivalents amounting to $538.8 million, and a borrowing capacity of $150 million under the 2022 Revolver.
Cash Flow Summary
The cash flow from operating activities for the nine months ended September 30, 2024, was $93.4 million, compared to $128.5 million for the same period in 2023.
| Cash Flow Activities (in thousands) | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $93,410 | $128,497 |
| Net Cash Used in Investing Activities | ($3,369) | ($2,902) |
| Net Cash Used in Financing Activities | ($17,612) | ($18,817) |
| Net Increase in Cash and Cash Equivalents | $72,429 | $106,778 |
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Resources:
- Olaplex Holdings, Inc. (OLPX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Olaplex Holdings, Inc. (OLPX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Olaplex Holdings, Inc. (OLPX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.