Olaplex reports growth in sales, profits
Olaplex, a Montecito-based hair care products company, reported big increases in revenue and net income in its earnings report for the first quarter, released May 11.
Olaplex had just under $62 million in net income in the first quarter of 2022, a 36.1% increase over the first quarter of 2021. Net sales hit $186.2 million in the most recent quarter, up 57.6% from a year earlier.
The company earned 9 cents per share in the first quarter of 2022, up from 7 cents per share a year earlier. Adjusted diluted earnings per share were 13 cents in the most recent quarter, compared to 9 cents a year earlier.
“The first quarter marked an excellent start to the year, consistent with our plan and continuing the positive momentum in our business,” JuE Wong, Olaplex’s president and CEO, said in a company news release.
Sales were up both domestically, with 65.1% year-over-year growth, and internationally, with 45.7% growth. Its professional salon segment grew by 62.6% and now represents 41.4% of its sales, while its specialty retail segment added Ulta stores and grew by 102.5%, to reach 34.5% of sales. Direct to consumer sales grew by 15.1% and make up 24.1% of Olaplex sales.
Olaplex released its quarterly report before the markets opened on May 11. Its stock closed the day at $12.27, up from $12.16 the previous day. Olaplex shares are down 58% since the start of the year.
Olaplex was founded in the Santa Barbara area and based on technology developed by UCSB chemists. It was acquired in 2019 by the private equity firm Advent and taken public last September. The company’s workforce is entirely remote, though it lists Montecito as its headquarters on filings with the U.S. Securities and Exchange Commission.
As of March 31, Olaplex had $143.3 million in cash and cash equivalents, compared to $186.4 million at the end of 2021.
