Q2 2024 Waldencast PLC Earnings Call Transcript
Key Points
- Waldencast PLC (WALD) reported a robust 25.7% year-over-year comparable growth in Q2 2024, exceeding the 21% growth in Q1.
- Milk Makeup grew three times faster than the US prestige makeup market in the first half of 2024.
- Obagi Medical outperformed the US prestige skincare market by a factor of 5x in the first half of 2024.
- Adjusted gross profit margin increased significantly by 650 basis points to 75.0% in Q2 2024.
- Waldencast PLC (WALD) maintained a double-digit adjusted EBITDA margin, positioning well to meet annual profitability goals.
- Both Milk Makeup and Obagi Medical experienced out-of-stocks in key products due to higher-than-expected consumer demand.
- Despite strong growth, the company faced challenges with inventory management, particularly with new product launches.
- There is still work to be done in strengthening and realigning the international distribution network for Obagi Medical.
- The company has not yet reached its long-term marketing investment levels, indicating further spending may be required.
- Operational efficiency improvements are still needed to fully optimize gross margins, particularly for Milk Makeup.
Greetings. Welcome to the Waldencast second quarter and first half 2024 earnings call. (Operator Instructions) Please note this conference is being recorded. I will now turn the conference over to Allison Malkin of ICR. Allison, you may begin.
Thank you, and welcome to the Waldencast PLC second-quarter fiscal 2024 earnings call. With me today are Michel Brousset, Founder and Chief Executive Officer; and Manuel Manfredi, Chief Financial Officer. For today's call, Michel will begin with an update on our business and vision and discuss the company's performance within the context of the beauty market. Manuel will follow with a review of the second quarter and first half performance and provide our fiscal 2024 outlook. Following this, Michel will share the strategic growth initiatives for our Milk Makeup and Obagi Medical brand.
After the prepared remarks, the operator will open the call to take questions. Before we start, I would like to remind you that management will make certain statements today which are
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