Page 1

OLAPLEX OLAPLEX Reports Third Quarter 2021 Results November 10 , 2021 SANTA BARBARA , Calif . , Nov. 10 , 2021 ( GLOBE NEWSWIRE ) -- Olaplex Holdings , Inc. ( NASDAQ : OLPX ) ( " OLAPLEX " or the " Company " ) , an innovative , science - enabled , technology - driven beauty company , focused on delivering its patent - protected premium hair care products to professional hair salons , retailers , and everyday consumers , today announced financial results for the third quarter and nine months ended September 30 , 2021 . JUE Wong , OLAPLEX's President and Chief Executive Officer , commented : " We delivered an outstanding third quarter highlighted by significant growth across our key financial metrics , reflecting the power of our disruptive business model focused on improving hair health with great products backed by science . Our third quarter net sales increase of 81 % year - over - year was fueled by broad - based strength for our OLAPLEX regimen across our omnichannel distribution globally and a favorable response to our new product introductions . During the quarter , we also marked a milestone for our company as we completed our initial public offering . I want to thank our entire team and partners for their hard work and dedication toward this significant event . As we look ahead , we believe OLAPLEX is well positioned for long term growth . I am extremely proud of our passionate and devoted team that continues to contribute to our performance this quarter and look forward to continuing our successful growth as a public company for the benefit of all OLAPLEX stakeholders . " For the third quarter of 2021 , compared to the third quarter of 2020 : • Net sales increased 81 % to $ 161.6 million reflecting strong growth across all channels of distribution driven by increased velocity of existing products , the launch of new products , and the addition of new customers , both in the U.S. and Internationally . By channel : Delivers strong third quarter results Completed Initial Public Offering Company Introduces Fiscal 2021 Outlook o Professional increased 57.6 % to $ 75.0 million , or 46.4 % of net sales o Specialty Retail grew 128.1 % to $ 46.3 million , or 28.7 % of net sales o Direct - To - Consumer ( DTC ) rose 86.9 % to $ 40.3 million , or 24.9 % of net sales ; • Gross profit increased 103 % to $ 127.5 million and gross margin increased 870 basis points to 78.9 % ; ● Adjusted gross profit increased 78 % to $ 129.2 million , or an adjusted gross margin of 79.9 % . This compares to adjusted gross profit of $ 72.6 million , or an adjusted gross margin of 81.2 % , in the third quarter of 2020 . • Net income increased 99.9 % to $ 56.6 million , or $ 0.08 per diluted share compared to $ 0.04 per diluted share in the third quarter of 2020 ; • Adjusted net income was $ 74.4 million , or $ 0.11 per diluted share , compared to Adjusted net income of $ 45.8 million , or $ 0.07 per diluted share in the 2020 third quarter ; and ● Adjusted EBITDA increased 63.3 % to $ 106.8 million , or 66.1 % of net sales , compared to $ 65.4 million , or 73.1 % in the third quarter of 2020. Adjusted EBITDA in the third quarter this year was negatively impacted by $ 4.3 million , or 265 basis points , expressed as a percentage of sales , due to incremental costs related to accelerated vesting of cash - settled unit awards and the re - valuation of non - vested cash - settled unit awards for non - executive employees due to the valuation of the Company at the time of the initial public offering . Adjusted gross profit , adjusted gross margin , adjusted net income , adjusted diluted EPS and adjusted EBITDA are measures that are not calculated or presented in accordance with generally accepted accounting principles in the United States ( " GAAP " ) . For more information about how we use these non - GAAP financial measures in our business , the limitations of these measures , and a reconciliation of these measures to the most directly comparable GAAP measures , please see " Disclosure Regarding Non - GAAP Measures " and the reconciliation tables that accompany this release . Third Quarter Highlights ( Dollars in $ 000's ) Net Sales Gross Profit Adjusted Gross Profit Net Income Adjusted Net Income Adjusted EBITDA Diluted EPS Adjusted Diluted EPS Weighted average Diluted Shares Outstanding $ $ $ $ $ $ $ $ Q3 2021 161,624 $ 127,482 $ 129,162 $ 56,591 $ 74,434 $ 106,842 $ 0.08 $ 0.11 $ Q3 2020 690,711,782 89,447 62,776 72,622 28,315 45,780 65,421 0.04 0.07 653,036,893 See " Disclosure Regarding Non - GAAP Financial Measures " and the reconciliation tables that accompany this release for a discussion and reconciliation of certain non - GAAP financial measures included in this release . % Change 80.7 % 103.1 % 77.9 % 99.9 % 62.6 % 63.3 % 100.0 % 57.1 %