Waldencast Plc · NASDAQ:WALD
Waldencast — Q1 2024 Earnings Presentation
60 slides from Waldencast's earnings presentation, May 21, 2024
Slide 1: Q1 2024 Earnings Presentation
1 Q1 2024 Earnings Presentation Strictly confidential. Property of Waldencast.
Slide 2: Presenters: Michel Brousset and Manuel Manfredi
Michel Brousset Manuel Manfredi Founder and CEO Chief Financial Officer 2 Strictly confidential. Property of Waldencast.
Slide 3: Disclaimer
Disclaimer Cautionary Statement Regarding Forward-Looking Statements Non-GAAP Financial Measures All statements in this presentation that are not historical, are forward-looking statements made pursuant to the safe harbor provisions of the In addition to the financial measures presented in this pres
Slide 4: Ambition: global multi-brand beauty and wellness platform
Our ambition is to build a global best-in-class beauty and wellness multi-brand platform by creating, acquiring, accelerating, and scaling the next generation of high-growth, purpose-driven brands 4
Slide 5: High-growth categories in a growing prestige beauty market
We depart from high-growth categories in a growing market 2023 Q1 2024 Prestige Makeup Prestige Beauty Prestige Beauty +5% +14% +9% Prestige Skincare +10% Source: Circana, U.S. Prestige Beauty Total Measured Market and OmniMarket Core Outlets, dollar sales January-December 2023 versus 2022 and Janua
Slide 6: Leading brands outperforming market growth
With leading brands outperforming market growth x2 #1 Physician-Recommended x4.4 #2 Clean Makeup Brand 6 3 Medical Skincare Brand At Sephora US Pigmentation. Fine Lines & Wrinkles. Sagging Skin. 10% 80+ Patents on 5% #9 EMV Makeup Brand 7 Products/Technology 4 Prestige Obagi Prestige Milk Skincare 1
Slide 7: Our destination is a multi-brand portfolio
Our destination is a multi-brand portfolio Where we are… Where we are headed… Skin Professional US Prestige Color Specialty APAC Hair Online Masstige Body Europe Wellness Food / Drug / Mass Mass LATAM Fragrance Categories Geographies Channels Price Points 7
Slide 8: Poised for long-term profitable growth
Poised for long-term profitable growth House of brands built for scale and speed Pure-play in beauty Diversified portfolio (category, channel, geography, price point) Significant opportunity for accelerated long-term growth Focused on sustained profitability World-class management teams with deep op
Slide 9: FY 2023 & Q1 2024 Combined Financial Profile
FY 2023 & Q1 2024 Combined Financial Profile 2023 Comparable Net 1 Adjusted Gross Profit2 Adjusted EBITDA4 $212.5m $150.4m $24.4m +15.3% 69.0%3 11.2%5 Q1 2024 Comparable Net Revenue6 Adjusted Gross Profit7 Adjusted EBITDA8 $67.9m $52.1m $11.4m +21.0% 76.3%3 16.6%5 ¹ Comparable Net Revenue excludes $
Slide 10: FY 2024 Outlook
FY 2024 Outlook Comparable Adjusted Net Revenue 1 EBITDA Margin 2 Acceleration above Mid-Teens Q1 2024 growth 1 Comparable Net Revenue exclude sales related to the Obagi China Business as well as related party sales under the transition agreement entered into between Waldencast and Obagi China in co
Slide 11: FY 2023 & Q1 2024 Liquidity & Outstanding Shares
FY 2023 & Q1 2024 Liquidity & Outstanding Shares Outstanding Liquidity Shares As of December 31, 2023 As of December 31, 2023 $141.8M Net Debt1 122,076,410 Ordinary Shares Outstanding $21.1M Cash & Cash Equivalents 101,228,857 Class A Ordinary Shares Outstanding 20,847,553 Class B Ordinary Shares Ou
Slide 12: Milk Makeup
Milk MAKEUP
Slide 13: Milk FY 2023 financial footnotes
1. Gross Profit of $65.0M adjusted for reconciling items, please refer to the Appendix page 51. 2. Adjusted Gross Margin is defined as Adjusted Gross Profit divided by US GAAP Net Revenue. 13 3. Net Loss of $5.7M adjusted for non-recurring add-backs, please refer to the Appendix page 50. 4. Adjusted
Slide 14: Milk Q1 2024 financial footnotes
1. Gross Profit of $24.6M, please refer to the Appendix page 59. 2. Adjusted Gross Margin is defined as Adjusted Gross Profit divided by US GAAP Net Revenue. 14 3. Net Income of $5.3M adjusted for non-recurring add-backs, please refer to the Appendix page 55. 4. Adjusted EBITDA Margin is defined as
Slide 15: The next gen beauty brand
15 25 — SPRING 2024 CONFIDENTIAL. FOR INTERNAL USE ONLY. THE NEXT GEN BEAUTY BRAND OF 15
Slide 16: Rooted in community, inspired by NYC, high performance clean products
ROOTED IN COMMUNITY. INSPIRED BY NYC. POWERED BY HIGH PERFORMANCE CLEAN PRODUCTS. 16 — 16 25
Slide 17: Our priorities: Brand, Product, Community
OUR PRIORITIES LIVE 32003203: wii 2 LOOK. dae) 300 we, Double down on DNA. Accelerate awareness. Broaden brand love + beauty cred. Brand Category leading heroes. Cc ith Innovation-leading launches. Product | (4 Community ‘onnect with our core. Welcome new groups High performance clean utility MAKEUP
Slide 18: Brand signature: self-expression
OUR BRAND SIGNATURE IS AN INVITATION FOR SELF-EXPRESSION AND LIVING YOUR TRUTH. 18 — 18 25
Slide 19: We spark. We partner. We amplify.
WE SPARK. WE PARTNER. WE AMPLIFY. THEY DO THE REST. @COCONUTCATHY @MIKAYLANOGUEIRA @CHRISTXIEE @SEANANTHONYV 15.4M VIEWS 7.2M VIEWS 10.2M VIEWS 4.2M VIEWS 19 — 19 25
Slide 20: Diversity is a critical part of our success
OUR DIVERSITY IS A CRITICAL PART OF OUR SUCCESS AND BEING TRUE TO THE COMPANY VALUES. TWO OR MORE RACES 4% ASIAN 16% 37% WHITE BLACK OR 17% Q1 2024 APPLICATIONS AFRICAN AMERICAN FOR 41 POSTINGS YTD 26% HISPANIC LATINO 20 — 20 25
Slide 21: Breakthrough products: clean, vegan, cruelty-free
BREAKTHROUGH PRODUCTS THAT DELIVERS AND IS GOOD FOR YOU. ALWAYS CLEAN, VEGAN AND CRUELTY-FREE. 21 — 21 25
Slide 22: Our product priorities
OUR 3 PRODUCT PRIORITIES — 22 22 25
Slide 23: Our product priorities
OUR 3 PRODUCT PRIORITIES — 23 23 25
Slide 24: Our product priorities
OUR 3 PRODUCT PRIORITIES 24 — 24 25
Slide 25: EMV brand: strong start driven by innovation and new retailers
STRONG START TO THE YEAR DRIVEN BY INNOVATION AND NEW RETAILER LAUNCHES (LYKO AND BOOTS) EMV Brand EMV • A glow up for brighter + firmer skin • Formula: The Cloud-like Impressions texture breathable smooth base that brightens, hydrates and evens skin tone. New Followers Video Views 25 Source: Creato
Slide 26: Driving awareness and credibility
DRIVING AWARENESS AND CREDIBILITY 26
Slide 27: Norway and Finland rankings (LYKO)
MAKEUP BRAND INSTORE NORWAY MAKEUP BRAND OMNI FINLAND MAKEUP BRAND OMNI 27 Source: LYKO, Q1 2024 Sell Thru
Slide 28: Strong ranking in Sephora UK and Space NK
STRONG RANKING IN SEPHORA UK AND SPACE NK. BOOTS STARTING WELL. 28 Source: Sephora UK, Q1 2024 Sell Thru; Space NK, Q1 2024 Sell Thru
Slide 29: Mexico, Chile, Colombia rankings
MEXICO MAKEUP OVERALL BRAND BRAND CHILE MAKEUP OVERALL BRAND BRAND COLOMBIA MAKEUP OVERALL BRAND BRAND 29 Source: Blush Bar, April 2024 Sell Thru
Slide 30: Up next: summer launches
UP NEXT: SUMMER LAUNCHES STARTING NOW wi LN PORE ECLIPSE KUSH HIGH KUSH HIGH ROLL BROW MATTE BLUR STICK ROLL MASCARA 8 SHADES
Slide 31: 31
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Slide 32: Key figures FY 2023 (Obagi)
KEY FIGURES FY 2093 ee COMPARABLE NET REVENUE! ADu. GROSS PROFIT? ADu. EBITDA* $112.0M $83.7M $20.8M +0.2% 71.2%3 17.7%®
Slide 33: Key figures Q1 2024 (Obagi)
KEY FIGURES O1 2094 Cena COMPARABLE NET REVENUE! ADu. GROSS PROFIT? ADu. EBITDA* $33.4M $27.5M S$6.7M +20.6% 81.4%3 20.0%5 ‘ection with the Business Combination, The distribution of 0 ast. Q1 2024 US GAAP Net Revenue of $33.8M.
Slide 34: Revenue drivers Q1 2024: United States and International
REVENUE DRIVERS Q1 20% OB UNITED STATES INTERNATIONAL! +43.5% +22.0%
Slide 35: Our global vision: Obagi Medical
OUR GLOBAL VISION CBRe! MEDICAL #1 PHYSICIAN-DISPENSED DERMATOLOGICAL BRAND IN THE WORLD TARGETED SOLUTIONS. TRANSFORMATIVE RESULTS.
Slide 36: The #1 US physician-recommended brand
THE #1 US PHYSICIAN ween RECOMMENDED BRAND PIGMENTATION OF PROFESSIONAL SKINCARE SALES FINE LINES & WRINKLES WERE AGING AND PIGMENTATION SAGGING SKIN PRODUCTS Independent industry sources, USA (2023) - dare you most likely to recommend to your patients for at-home u skin condition? (N=262)
Slide 37: Growth strategy key levers
MEDICAL OUR GROWTH STRAPEGY 3 KEY LEVERS * Strengthen Dermatological Skincare Brand DNA * Accelerate Cutting-Edge, Science Backed Innovation * Grow Brand Awareness & Footprint
Slide 38: Strengthening dermatological credentials
STRENGTHENING DERMATOLOGICAL CREDENTIALS NEW VISUAL IDEN TTTY
Slide 39: Boosting visibility across all touchpoints
BOOSTING VISIBILITY OBAGI ACROSS ALL TOUCHPOINTS (e)syXel ==OBAGI HYDRATE LUXE® idea HYDRATING FACIAL CREAM DESCRIPTION PROFESSIONAL-C SERUM a S Award-winning antioxidant defense
Slide 40: Packaging relaunch
PACKAGING RELAUNCH ‘enn Validated Design: Appeal 77% => 89% Brand Recall 38% => 68% Purchase Intent 70% => 83% Distinctiveness 61% => 73% CLENZIDERM M.0. PROFESSIONAL-C ELASTIDERM OBAGI _ E 5 MEDICAL HYDRATE LUXE =
Slide 41: Dedicated Medical Esthetic Advisory Board
Dedicated Medical Esthetic Advisory Board Dr. Suzan Obagi A world-renowned, leading board-certified dermatologist and cosmetic surgeon. In her role of Chief Medical Director, Dr. Obagi plays a pivotal role in shaping Obagi's product development, portfolio refinement, research initiatives, and educat
Slide 42: Professional channel is at the heart of our strategy
Professional Channel Is At The Heart Of Our Stratcgy & Informs Our Product Development
Slide 43: Industry recognized breakthrough innovation
INDUSTRY RECOGNIZED gene BREAKPHROUGH INNOVATION ) -_ Rebalance Hydrate Light Daily Hydro-Drops Skin Barrier Recovery Cream Weightless Gel Cream Rejuvenating Eye Gel Cream
Slide 44: Expanding strongholds: more innovation in H2 2024
EXPANDING STRONGHOLDS MORE INNOVATION COMING IN H2 2024 New Formats & Technology Same High Efficacy & Proven Results
Slide 45: Raising consumer awareness
RAISING CONSUMERAWARENESS OBA?! REJUVENATING EYE GEL CREAM allure COSMOPOLITAN NEWBEAUTY POPSUGAR WHO WHAT WEAR
Slide 46: Expanding to attract a new consumer
EXPANDING TO APTRACT A eg NEW CONSUMER 2X E-COMMERCE NET REVENUE GROWTH Q1 2024 VS Q1 2023 AGE: 25-54 AGE: 35-64 New to brand Existing loyal to brand Source: Obagi Internal Data.
Slide 47: Brands, Teams, Communities
Brands OBAGI Milk MEDICAL MAKEUP vwwaldencast Teams Communities
Slide 48: Appendix
Appendix 48 Strictly confidential. Property of Waldencast.
Slide 49: 2023 Financial Overview
2023 Financial Overview ¹ Comparable Net Sales exclude sales related to the Obagi China Business as well as related party sales under the transition agreement entered into between Waldencast and Obagi China in connection with the Business Combination. The distribution of Obagi Skincare’s products in
Slide 50: 2023 Adjusted EBITDA
2023 Adjusted EBITDA ⁴ ⁵ ⁶ ⁷ ⁸ 1 Includes mainly legal, advisory and consultant fees related to the Business Combination and the financial restatement of the 2020-2022 periods. 2 Relates to the amortization of the inventory fair value step-up as a result of the Business Combination 3 Relates to chan
Slide 51: 2023 Adjusted Gross Profit
2023 Adjusted Gross Profit 1 Relates to the fair value of the related party liability for the unfavorable discount to Obagi China as part of the Business Combination.. 2 Relates to the amortization of the inventory fair value step-up as a result of the Business Combination. 3 The Supply Agreement an
Slide 52: Q1 2024 Highlights
Q1 2024 Highlights ¹ Comparable Net Sales exclude sales related to the Obagi China Business as well as related party sales under the transition agreement entered into between Waldencast and Obagi China in connection with the Business Combination. The distribution of Obagi Skincare’s products in Chin
Slide 53: Q1 2024 Net Debt Position
Q1 2024 Net Debt Position ¹ Net Debt Position is defined as the principal outstanding for the 2022 Term Loan and 2022 Revolving Credit Facility minus the cash and cash equivalents as of March 31, 2024. 53
Slide 54: Group Q1 2024 Adjusted EBITDA
Group Q1 2024 Adjusted EBITDA 1 Includes mainly legal, advisory and consultant fees related to the financial restatement for FY 2022 and the SEC investigation. 2 Relates to change in fair value of warrant liabilities and the interest rate collar. 3 Relates to the fair value of the related party liab
Slide 55: Milk Q1 2024 Adjusted EBITDA
Milk Q1 2024 Adjusted EBITDA 1 Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by US GAAP Net Revenue. 55
Slide 56: Obagi Q1 2024 Adjusted EBITDA
Obagi Q1 2024 Adjusted EBITDA 1 Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by US GAAP Net Revenue. 56
Slide 57: Central Costs Q1 2024 Adjusted EBITDA
Central Costs Q1 2024 Adjusted EBITDA 57
Slide 58: Group Q1 2024 Adjusted Gross Profit
Group Q1 2024 Adjusted Gross Profit 1 Relates to the fair value of the related party liability for the unfavorable discount to the Obagi China Business as part of the Business Combination. 2 Relates to the amortization of the inventory fair value step-up as a result of the Business Combination. 3 Th
Slide 59: Milk Q1 2024 Adjusted Gross Profit
Milk Q1 2024 Adjusted Gross Profit 1 Adjusted Gross Margin is defined as Adjusted Gross Profit divided by US GAAP Net Revenue. 59
Slide 60: Obagi Q1 2024 Adjusted Gross Profit
Obagi Q1 2024 Adjusted Gross Profit 1 Adjusted Gross Margin is defined as Adjusted Gross Profit divided by US GAAP Net Revenue. 60