Elf, a popular US beauty brand, released its financial results for the three and nine months of 2023 ending at the end of last year, saying, “Net sales increased by 85% in the third quarter, market share increased by 305 basis points, This is our 20th consecutive year of growth in each quarter,” Taran Amin, chairman and chief executive officer of elf Beauty, said in a press release.
Following what Amin described as “exceptional, consistent, category-leading growth,” the company said: “Expected net sales are up 69-71% year over year, compared to expectations for 2024. updated its 2024 financial outlook to reflect a 69% to 71% increase. Previously, it increased by -57%,” the release confirmed.
Q3 2023 vs. Q3 2022
Comparing 2023 and 2022, the release confirmed that this quarter was quite remarkable for the brand. Elf’s release said net sales increased 85% to $270.9 million, “primarily driven by the strength of both our retailer and e-commerce channels,” as well as the brand’s gross margin. That’s an increase of 71%, or 350 base points. “Primarily driven by favorable foreign exchange effects, improved transportation costs, cost reductions and mix,” the release acknowledged.
Additionally, the company’s net income for the third quarter of 2023 was $26.9 million on a generally accepted accounting principles (GAAP) basis, or excluding “costs or income related to stock-based compensation, other non-recurring items, and impairments.” Adjusted net income was $42.9 million. “We considered equity investments, debt extinguishment losses, amortization of acquired intangible assets, and the tax impact of the adjustments described above,” the release said.
Accordingly, the release continued, the company’s “GAAP diluted earnings per share was $0.46” and “adjusted diluted earnings per share (excluding items identified in the reconciliation table below).” Diluted earnings per share (adjusted net income) was $0.74. ”
9 months in 2023 and 2022
In the nine months to the end of 2023, the company achieved significant and steady growth, including an 80% increase in net sales to $702.8 million and an approximately 400 basis point increase in gross profit compared to the same period in 2022. achieved growth. The company’s release confirmed that “net income was $113.1 million on a GAAP basis” and “adjusted net income was $152.9 million.”
As a result, Elf had “GAAP diluted earnings per share of $1.97” and “adjusted diluted earnings per share of $2.66,” the release said.
At the end of 2023, Elf reported on its balance sheet that it had cash and cash equivalents of $72.7 million, long-term debt and finance lease obligations of $72.7 million, compared to cash and cash equivalents of $87 million and long-term debt and finance lease obligations of $62.2 million.・Confirmed that lease obligations of $164.4 million are reflected. Term and finance lease obligations as of December 31, 2022 will be terminated,” the company’s release states.
One of the main drivers of the company’s continued growth is reportedly the October 2023 acquisition of high-performance skin care brand Natrium, a deal valued at “$333 million in cash and company stock.” ” and “further enhances the company’s mission” to deliver the best beauty for all concerns of the eyes, lips, face, and skin,” the release concludes.
