Olaplex Holdings, Inc.

Greetings and welcome to Olaplex Holding, Inc.' 's fourth quarter 2024 earnings results conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Allison Malkin, Investor Relations. Thank you. You may begin. Thank you, and good morning, everyone.

Joining me today are Amanda Baldwin, Chief Executive Officer, and Catherine Dunleavy, Chief Operating Officer and Chief Financial Officer. Before we start, I would like to remind you that management will make certain statements today, which are forward-looking, including statements about the outlook for Olaplex's business and other matters referenced in the company's earnings release issue today. Each forward-looking statement is subject to risk and uncertainties that could cause actual results to differ materially from those projected or implied by such statements. Additional information regarding these factors appears under the heading Cautionary Notes Regarding Forward Looking Statements in the Company's Earnings Release and the Filings the Company Makes with the Securities and Exchange Commission that are available at www.sec.gov and on the Investor Relations section of the company's website at ir.olaplex.com. The foreign-looking statements on this call speak only as of the original date of this call, and we undertake no obligation to update or revise any of these statements. Also, during this call, management will discuss certain non-GAAP financial measures, which management believes can be useful in evaluating the company's performance. The presentation of non-GAAP financial measures should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. You will find additional information regarding these non-GAAP financial measures and a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures in the company's earnings release. A live broadcast of this call is also available on the investor relations section of the company's website at ir.olaplex.com. Additionally, during this call, management will refer to certain data points, estimates, and forecasts that are based on industry publications or other publicly available information, as well as our internal sources. The company has not independently verified the accuracy or completeness of the data contained in these industry publications and other publicly available information. Furthermore, this information involves assumptions and limitations and you are cautioned not to give undue weight to these estimates. With that, I will now turn the call over to Amanda.

Thank you, Allison. Good morning, everyone, and thank you for joining us. For today's call, I will share with you our fourth quarter and fiscal 2024 results and discuss the progress we have made on our strategic priorities and transformation. Then, Katherine will discuss our financial results and outlook. Following this, I will introduce our Bonds and Beyond strategic vision. A year ago, on my first call after having joined Olaplex, I shared my excitement for leading this truly powerful business with an extraordinary technical foundation and differentiated science that delivers superior products that have garnered consumer and pro-enthusiasm across the world. At the same time, I acknowledge that we were at a pivotal moment and our transformational journey would take time as we focused on building a business and a brand for the long run. 2024 was a productive year in moving us towards that goal. We started to harness our innovation and marketing capabilities, as well as implemented important work streams to connect with our partners across the globe, strengthen our business processes, and attract talented executives to our team. In addition, we worked behind the scenes to create a brand vision and strategy that we believe will capitalize on our unique strengths and position our company to deliver long-term, sustainable, and profitable growth. Overall, our financial performance and executional learning were indicative of a company in the midst of a transformation, with 2024 net sales and adjusted EBITDA below 2023 levels. We faced headwinds internationally as we focused on resetting the business for the future. And while we are confident in our overall marketing strategy, the investment has taken longer than expected to improve demand across our SKUs and channels. That being said, I remain focused on our future and am encouraged by our end of the year performance as we continue to make progress against our strategic goals and delivered a better than expected holiday season. Let me briefly touch on our fourth quarter financials. For the fourth quarter, we reported net sales of $100.7 million an adjusted EBITDA of $17.5 million. For the year, net sales were $422.7 million, representing a decline of 7.8% from 2023. An adjusted EBITDA was $129.7 million for an adjusted EBITDA margin of 30.7%. At the start of the year, we identified three transformation priorities.