Olaplex Results Presentation Deck slide image

Olaplex Results Presentation Deck

REVISING FY 2023 GUIDANCE Net Sales Adjusted Net Income * Adjusted EBITDA* Updated FY 2023 Guidance Q2 2023 EARNINGS $445 - $465 MM $96 - $108 MM $161 - $176 MM Outcomes and Assumptions for Revised Outlook ● Q2 results, which were lower-than- expected driven by challenging trends in Pro and Specialty Retail ● • Increased investments in sales and marketing to deliver stabilization rather than growth in 2H ● Reduced expectation for demand from new product introductions and new distribution gains ● 6 ● 1H 2023 Progress Towards Stabilization Lift in awareness and positive opinion of OLAPLEX following the start of our upper funnel marketing campaign Increased traffic and improved conversion on OLAPLEX.com after the campaign launch We believe the months-on-hand inventory positions at our major accounts on our core items are in a much better place *Adjusted EBITDA and Adjusted Net Income are non-GAAP measures. The Company is not able to provide, without unreasonable effort, a reconciliation of the guidance for adjusted EBITDA and adjusted net income to the most directly comparable GAAP measure because the Company does not currently have sufficient data to accurately estimate the variables and individual adjustments included in the most directly comparable GAAP measure that would be nece ary for such reconciliations, including (a) income tax related accruals in respect of certain one-time items, (b) costs related to potential debt or equity transactions, and (c) other non-recurring expenses that cannot reasonably be estimated in advance. These adjustments are inherently variable and uncertain and depend on various factors that are beyond the Company's control and as a result it is also unable to predict their probable significance. Therefore, because management cannot estimate on a forward-looking basis without unreasonable effort the impact these variables and individual adjustments will have on its reported results in accordance with GAAP, it is unable to provide a reconciliation of the non-GAAP measures included in its fiscal 2023 guidance. 1H 2023, net sales, or "sell-in", -44% overall sell-out at key accounts -26% OLAPLEX.
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