Business
BeautyHealth Announces Business Transformation Program to Drive Profitability and Growth; Board of Directors Authorizes $100 Million Share Repurchase
First phase of the transformation program expected to generate over $20 million annualized cost savings during Q1 2024; second phase expected to generate
About this update from Skinhealth Systems Inc.
[{"type":"text","content":"\nFirst phase of the transformation program expected to generate over $20 million annualized cost savings during Q1 2024; second phase expected to generate over $15 million annualized cost savings during Q2 2024\n\n\nCompany re-affirms long-term 2025 financial guidance of $600 to $700 million net sales, up to 500 basis points gross margin expansion vs. FY 2021, and 25 to 30% Adjusted EBITDA margin\n\n\n LONG BEACH, Calif.--(BUSINESS WIRE)--\nThe Beauty Health Company (NASDAQ: SKIN), home to flagship brand Hydrafacial, today announced the launch of a business transformation program to drive profitable growth by reducing operating costs and streamlining its operations. Alongside this, its Board of Directors has authorized the Company to repurchase up to $100 million of its common stock.\n\n\n“The transformation program is an important step towards delivering our long-term growth and profitability targets in 2025 and beyond,” said BeautyHealth President and Chief Executive Officer Andrew Stanleick. “The actions announced today reflect our commitment to creating shareholder value.”\n\n\nBusiness Transformation Program\n\n\nThis fall, BeautyHealth will initiate a two-phase transformation program to reduce costs and streamline its operations to drive profitable growth.\n\n\nPhase 1 of the program is expected to realize annualized cost savings of over $20 million during Q1 2024, with Phase 2 expected to realize over $15 million annualized cost savings during Q2 2024.\n\n\nIn Phase 1, the Company will reduce costs by:\n\n\n\nStreamlining BeautyHealth’s go-to-market footprint, creating unified centers of excellence to support our brand growth.\n\n\n\nModernizing processes by leveraging technology and automations.\n\n\n\nAdvancing initiatives to drive manufacturing efficiencies.\n\n\n\nIn Phase 2, the Company expects cost savings to be primarily driven by optimizing manufacturing operations.\n\n\nWhile implementing the transformation program, BeautyHealth does not expect to execute large-scale M&A transactions. The Company will provide an update on the program during its third quarter earnings call in November 2023.\n\n\nShare Repurchase Authorization\n\n\nThe BeautyHealth Board of Directors has authorized the Company to repurchase up to $100 million of its common stock. In reaching its decision to authorize a share repurchase program, th...