Waldencast PLC (WALD) 2022 Q3 法說會逐字稿

Thank you, and welcome to the Waldencast PLC Third Quarter Fiscal 2022 Earnings Call. With me today are Michel Brousset, Founder and Chief Executive Officer and Philippe Gautier, Chief Financial Officer and Chief Operating Officer.

謝謝，歡迎參加 Waldencast PLC 2022 財年第三季度收益電話會議。今天與我在一起的有創始人兼首席執行官米歇爾·布魯塞 (Michel Brousset) 和首席財務官兼首席運營官菲利普·戈蒂埃 (Philippe Gautier)。

For today's call, Michel will begin with a market update on the beauty market followed by a review of our third quarter financial performance and details on our growth strategy and highlights of our ESG accomplishments. After the prepared remarks, the operator will open the call to take questions.

在今天的電話會議中，米歇爾將首先介紹美容市場的最新情況，然後回顧我們第三季度的財務業績，詳細介紹我們的增長戰略以及我們的 ESG 成就的亮點。準備好發言後，接線員將打開電話回答問題。

Before we start, I would like to remind you that management will make certain statements today which are forward looking including statements about the guidance on future earnings, Waldencast strategic initiatives, plans to expand both internationally and domestically and other matters referenced in the company's earnings release issued today.

在我們開始之前，我想提醒您，管理層今天將發表某些前瞻性聲明，包括有關未來收益指引、Waldencast 戰略舉措、國際和國內擴張計劃以及公司收益發布中提到的其他事項的聲明今天發布。

Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those projected in or implied by such statements. Additional information regarding these risks and uncertainties appears under the heading cautionary note regarding forward-looking statements in the company's earnings release and in the company's filings that it makes with the Securities and Exchange Commission that are available@www.sec.gov and on the investor relations section of the company's website at ir.waldencast.com.

每項前瞻性陳述都存在風險和不確定性，可能導致實際結果與此類陳述中預測或暗示的結果存在重大差異。有關這些風險和不確定性的更多信息出現在有關公司收益發布以及公司向美國證券交易委員會提交的文件中有關前瞻性陳述的警告性說明的標題下，該文件可通過@www.sec.gov獲取，並且有關投資者公司網站 ir.waldencast.com 的關係部分。

The forward-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 it believes can be useful in evaluating the company's performance. The presentation of non-GAAP measures should not be considered in isolation or as a substitute for results prepared in accordance with GAAP.

本次電話會議中的前瞻性陳述僅代表本次電話會議原始日期的情況，我們不承擔更新或修改任何這些陳述的義務。此外，在這次電話會議中，管理層將討論某些非公認會計準則財務指標，它認為這些指標有助於評估公司的業績。非公認會計原則措施的呈現不應被孤立地考慮或作為根據公認會計原則準備的結果的替代。

You will find additional information regarding these non-GAAP financial measures and a reconciliation of these non-GAAP 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.waldencast.com com.

您將在公司的收益報告中找到有關這些非公認會計原則財務指標的更多信息，以及這些非公認會計原則與最直接可比的公認會計原則指標的調節表。該電話會議的現場直播也可在公司網站 ir.waldencast.com 的投資者關係部分觀看。

A replay of the webcast will be available approximately two hours following the live call and remain on the investor relations website for 90 days. We have provided adjusted results, which allow for a comparable presentation of our performance versus the prior year reflecting the timing of the business combination, which occurred intra-quarter.

網絡直播的重播將在現場電話會議後大約兩小時內進行，並在投資者關係網站上保留 90 天。我們提供了調整後的結果，可以將我們的業績與上一年進行比較，反映季度內發生的業務合併的時間。

As such, our Q3 GAAP financials include a predecessor period prior to the closing date of the business combination and a successor period, all periods on and after the acquisition date, while our first half performance was provided on a per forma basis, as the entire period was prior to the consummation of the business combination with Obagi Global Holdings Limited.

因此，我們第三季度的 GAAP 財務數據包括業務合併結束日期之前的前一期間和後續期間、收購日期及之後的所有期間，而我們上半年的業績是按實際情況提供的，因為整個該時期是在與Obagi Global Holdings Limited 完成業務合併之前。

In addition, our segment data includes an allocation for Waldencast central costs, reflecting the corporate expenses that are not allocated to our Obagi Skincare and Milk Makeup brands and on a GAAP basis, non-recurring transaction costs related to the business combination.

此外，我們的部門數據還包括對Waldencast 中央成本的分配，反映了未分配給我們的Obagi 護膚品和牛奶化妝品品牌的公司費用，以及按照公認會計原則(GAAP) 計算的與業務合併相關的非經常性交易成本。

In addition, our income statement includes symmetric comparable net sell, which excludes the Obagi China Business, which was distributed to Cedarwalk, the sole shareholder of Obagi Skincare prior to the business combination. The presentation of comparable net sales removes non-recurring sales from both the current year and prior year periods. You will also see an adjustment to adjusted gross profit in our Obagi Skincare financials, given the sale of our distributor in China, we're adding non-material margin.

此外，我們的損益表包括對稱可比淨銷售額，其中不包括歐邦琪中國業務，該業務在業務合併之前分配給歐邦琪護膚品的唯一股東 Cedarwalk。可比淨銷售額的列報刪除了本年度和上一年期間的非經常性銷售額。鑑於我們出售了中國經銷商，您還將在我們的 Obagi Skincare 財務報表中看到調整後毛利潤的調整，我們正在增加非物質利潤。

Finally, adjusted EBITDA excludes non-operating transaction costs. You will find a table that reconciles our adjusted results to GAAP in our press release and in this presentation, as well as in our SEC filing on Form 6k that was issued earlier this morning. I will now turn the call over to Michel Brousset.

最後，調整後的 EBITDA 不包括非經營交易成本。您可以在我們的新聞稿、本演示文稿以及今天上午早些時候發布的 6k 表格中向 SEC 提交的文件中找到一個表格，該表格將我們的調整後結果與 GAAP 進行了協調。我現在將把電話轉給米歇爾·布魯塞。

Thank you, Alison, and good morning everyone. I am pleased to speak to you today and share a strong third quarter performance for Waldencast.

謝謝你，艾莉森，大家早上好。我很高興今天與您交談並分享 Waldencast 第三季度的強勁業績。

Before I discuss our results, I would like to start by stating our ambition of Waldencast. Our aim is to build over time a global best in class beauty and wellness platform that creates, acquires, accelerates and scales the next generation of high growth, highly profitable, purpose driven brands.

在討論我們的結果之前，我想首先闡述我們對 Waldencast 的雄心。我們的目標是隨著時間的推移建立一個全球一流的美容和健康平台，創建、收購、加速和擴大下一代高增長、高利潤、目標驅動的品牌。

We are a beauty and wellness pure player, an operating platform built for both speed and agility, reimagining the beauty company of the future of the home of the brands of tomorrow that connect with consumers' needs and their values.

我們是一家純粹的美容和健康公司，一個為速度和敏捷性而構建的運營平台，重新構想未來品牌之家的美容公司，與消費者的需求和價值觀相聯繫。

We are a beauty third player because it is not only an industry we know extremely well, but also because it is the most beautiful of businesses. It has a strong growth and resilience as demonstrated by the market evolution today despite a broader, more challenging macro environment.

我們是美麗第三者，因為這不僅是我們非常了解的行業，而且還因為它是最美麗的企業。儘管宏觀環境更廣泛、更具挑戰性，但今天的市場演變證明了它具有強勁的增長和彈性。

It has very attractive structural economics and it's a business where focused expertise matters to the long term, profitable and relevant brands. The marketplace continuous its strong growth trajectory despite some punctual challenging areas.

它具有非常有吸引力的結構經濟學，並且在這個行業中，專注的專業知識對於長期、盈利和相關的品牌至關重要。儘管存在一些具有挑戰性的領域，但市場仍繼續保持強勁的增長軌跡。

In the US, which is our main market as of today, premium beauty year to date through the end of September is growing strongly at 16.4% in value and in units at 13.7%. Q3 trend remains in line with a strong growth with value of plus 15%, and unit of plus 12.7% reflective of both an increased consumption, more units, and premiumization.

在我們目前的主要市場美國，截至 9 月底，優質美容產品的價值和銷量均強勁增長，增長率為 16.4%，單位增長率為 13.7%。第三季度的趨勢仍然與強勁增長一致，價值增長了 15%，單位增長了 12.7%，反映了消費的增加、單位數量的增加和高端化。

Makeup year to date is growing even faster than the broader beauty category at 18.3%. This ongoing acceleration is driven by consumers going back to the pre-COVID habits, going back to the office, seeing friends and socializing with one quarter of women indicating that they are actually wearing more products versus a year ago, a trend led by Gen Z with 48% of them stating that they are using more products.

今年迄今為止，化妝品的增長速度甚至超過了更廣泛的美容類別，達到 18.3%。這種持續的加速是由消費者回到新冠疫情前的習慣、回到辦公室、見朋友以及與四分之一的女性社交所推動的，四分之一的女性表示，與一年前相比，她們實際上穿著更多的產品，這是Z 世代引領的趨勢其中 48% 的人表示他們正在使用更多的產品。

Skincare is not only growing, but has accelerated in Q3 with year to date growth at 13% in value and accelerating Q3 to 15.5% in value. A key driver of skincare growth over the last year has been driven by the raised price of science led high performance skincare, as evidenced by social media conversations where science and dermatology led skincare growing 57% versus a year ago.

護膚品不僅在增長，而且在第三季度加速增長，今年迄今價值增長 13%，第三季度價值增長加速至 15.5%。去年護膚品增長的一個關鍵驅動力是由科學主導的高性能護膚品價格上漲推動的，社交媒體對話證明，科學和皮膚病學主導的護膚品比一年前增長了 57%。

The first two brands in our portfolio, Obagi Skincare and Milk Makeup, play in the most attractive segments of those high growth categories, science-led skincare and makeup.

我們產品組合中的前兩個品牌，Obagi 護膚品和 Milk Makeup，在那些高增長類別、科學主導的護膚品和化妝品中最具吸引力的細分市場發揮作用。

Obagi Skincare is the crown jewel of the physician dispensed market. It is perceived as the number one brand in health space by practitioners in the most attractive, fast growing subset of premium skincare. With its breakthrough patented technologies and transformative clinically proven results, it unlocks high loyalty from both consumers and physicians that is perfectly positioned to answer the growing consumer need for high performance effective skincare.

歐邦琪護膚品是醫生配藥市場皇冠上的明珠。在最具吸引力、增長最快的優質護膚品領域，它被從業者視為健康領域的第一品牌。憑藉其突破性的專利技術和變革性的臨床驗證結果，它贏得了消費者和醫生的高度忠誠度，完全能夠滿足消費者對高性能有效護膚品日益增長的需求。

It also paves the way for our expansion to other categories, not just for the Obagi brand, but also our wider portfolio, through its deep understanding of skin biology, which is a great springboard for innovation in other beauty categories.

它還通過對皮膚生物學的深刻理解，為我們向其他類別的擴張鋪平了道路，不僅是 Obagi 品牌，還包括我們更廣泛的產品組合，這是其他美容類別創新的絕佳跳板。

Milk Makeup is a cult Gen Z brand with a large and engaged organic following to a diverse and inclusive community, known for its cultural relevance and iconic products. It is a leading teen makeup brand, today the number two teen makeup brand at Sephora U.S. and with a full intention to close the gap to number one.

Milk Makeup 是 Z 世代的熱門品牌，在多元化和包容性的社區中擁有大量活躍的有機追隨者，以其文化相關性和標誌性產品而聞名。它是領先的青少年化妝品品牌，目前是美國絲芙蘭第二大青少年化妝品品牌，並致力於縮小與第一的差距。

It brings a connecting relevant promise of cool, clean makeup that works for the attractive Gen Z demographic and increasingly beyond.

它帶來了酷炫、乾淨的妝容的相關承諾，適用於有吸引力的 Z 世代以及越來越多的人群。

Now with that as an initial frame, I would like to turn the call over to Philippe Gautier, Waldencast CFO and COO who'll lead us through the financials.

現在，以此作為初始框架，我想將電話轉給 Waldencast 首席財務官兼首席運營官 Philippe Gautier，他將帶領我們了解財務狀況。

Thank you, Michel. It is a pleasure to speak to all of you today on my first earnings call as Waldencast PLC's Chief Financial Officer and Chief Operating Officer. While I'm new to Waldencast, I've been leading the finance and operations of a number of prestigious global consumer brands for more than 30 years. And I am extremely excited to support Waldencast in our ambition to create a global best-in-class beauty and wellness operating platform.

謝謝你，米歇爾。今天，我很高興在我作為 Waldencast PLC 首席財務官兼首席運營官的第一次財報電話會議上與大家交談。雖然我是 Waldencast 的新人，但 30 多年來我一直在領導多個著名的全球消費品牌的財務和運營工作。我非常高興能夠支持華登卡斯特創建全球一流的美容和健康運營平台的雄心壯志。

Our third quarter results continue our strong trend with double digit growth in net sales, comparable net sales and significant expansion in adjusted gross margin and adjusted EBITDA as compared to the third quarter of 2021.

我們第三季度的業績延續了強勁的趨勢，與 2021 年第三季度相比，淨銷售額、可比淨銷售額均實現兩位數增長，調整後毛利率和調整後 EBITDA 顯著擴張。

We are pleased to deliver this strong performance which reflects the growing loyalty to our Obagi Skincare and Milk Makeup brands, given the efficacy of our products, the power of our innovation and the successful execution of our growth strategies.

我們很高興能夠取得如此強勁的業績，這反映出人們對我們的 Obagi 護膚品和牛奶彩妝品牌的忠誠度不斷提高，因為我們產品的功效、創新的力量以及我們增長戰略的成功執行。

This led to total net sales rising 10.3% and an increase of 18.2% on a comparable basis, excluding the Obagi China business that was distributed to its sole shareholder, Cedarwalk Skincare Limited, prior to the business combination as well as the related property sales to the distributor post combination.

這導致總淨銷售額增長 10.3%，可比增長 18.2%，不包括業務合併前分配給其唯一股東 Cedarwalk Skincare Limited 的 Obagi 中國業務以及向分配器柱組合。

Therefore, on a like for like basis, which better reflects the ongoing operating business and how we manage the current business, comparable net sales grew +18.2%. Comparable net sales are also the indicator which is consistent with the way that sales were communicated in the previous quarters as all pro forma figures have been prepared excluding Obagi China.

因此，在同類基礎上，可比淨銷售額增長了+18.2%，這更好地反映了正在進行的運營業務以及我們管理當前業務的方式。可比淨銷售額也是與前幾個季度的銷售額傳達方式一致的指標，因為所有備考數據均已編制，不包括歐邦琪中國。

Adjusted gross margin expanded 155 basis points. The business benefits from our operating scale efficiencies in sourcing, pricing, and gross to net efficiencies. Keep in mind, again, that our adjusted gross margin removes Obagi's former China business and the impact of the inventory fair value setup driven by the acquisition of Obagi Skincare and Milk Makeup.

調整後毛利率擴大 155 個基點。該業務受益於我們在採購、定價和毛淨效率方面的運營規模效率。再次請記住，我們調整後的毛利率消除了歐邦琪之前的中國業務以及收購歐邦琪護膚品和牛奶彩妝所驅動的庫存公允價值設置的影響。

Strong sales growth and expansion in gross margin more than offset investment in corporate and marketing expenses, which include Waldencast central expenses post combination, fueling a strong 126.3% increase in adjusted EBITDA to $15.3 million, representing 19.4% of net sales.

強勁的銷售增長和毛利率的擴張抵消了公司和營銷費用的投資，其中包括合併後的 Waldencast 中心費用，推動調整後 EBITDA 強勁增長 126.3% 至 1,530 萬美元，占淨銷售額的 19.4%。

Turning now to the driver of sales growth. At Obagi, sales were led by continued growth in our core U.S. physician dispensed business, along with strong international growth. We also invested in enhancing our digital capabilities to accelerate our D2C expansion.

現在轉向銷售增長的驅動因素。在 Obagi，我們的核心美國醫生配藥業務的持續增長以及強勁的國際增長帶動了銷售額。我們還投資增強數字能力，以加速 D2C 擴張。

At Milk, growth was impressive far outpacing the industry driven by the strength of the brand's [hero] products and team's ongoing ability to delight consumers with must-have innovation.

在 Milk ，由於該品牌的[英雄]產品的實力以及團隊通過必備創新取悅消費者的持續能力，其增長速度令人印象深刻，遠遠超過了行業。

One of our objectives was to improve gross margin at Milk and we were very pleased to see the initial benefits of our work focused on increasing efficiencies in sourcing and distribution. We're investing a portion of the savings in brand marketing which is paying dividends with the increased investment driving customer engagement, trial, and sales. We also believe Milk has all the makings of a strong global brand and are beginning to capitalize on its international market opportunity.

我們的目標之一是提高 Milk 的毛利率，我們非常高興地看到我們工作的最初效益集中在提高采購和分銷效率上。我們將部分節省的資金投入到品牌營銷中，隨著投資的增加推動客戶參與、試用和銷售，我們將獲得紅利。我們還相信 Milk 擁有成為強大全球品牌的所有要素，並開始利用其國際市場機會。

We're excited by this quarter's results, but it's very important to highlight, as Michel did in the previous earnings call, that we manage the company's performance on an annual basis and quarterly results should not be extrapolated to full year results. Also, importantly, that we are still working through the full technical accounting implication of the combination of these three entities and the carve out of the Obagi China business distribution.

我們對本季度的業績感到興奮，但非常重要的是要強調，正如米歇爾在之前的財報電話會議中所做的那樣，我們按年度管理公司業績，不應將季度業績外推至全年業績。此外，重要的是，我們仍在研究這三個實體合併以及歐邦琪中國業務分配的分拆的全部技術會計影響。

Our earnings release provides some detailed reconciliation between our unaudited GAAP financials and non-GAAP measures. When reading our financial statements, and in the appendix of this presentation, you should note there is a clear division between the predecessor period that includes financials up to the acquisition date, and successor period that includes the acquisition date and all periods thereafter.

我們的收益發布提供了我們未經審計的 GAAP 財務數據和非 GAAP 指標之間的一些詳細調節。在閱讀我們的財務報表和本演示文稿的附錄時，您應該注意到前一期間（包括截至收購日期的財務數據）和後繼期間（包括收購日期及其後的所有期間）之間有明確的劃分。

The predecessor and successor results shown are not comparable because the successor period includes the completed financial statements of Waldencast, Obagi, and Milk, whereas the predecessor period includes only Obagi's financial statements.

顯示的前任和後繼結果不具有可比性，因為後繼期間包括 Waldencast、Obagi 和 Milk 的完整財務報表，而前任期間僅包括 Obagi 的財務報表。

Let's take now a closer look at our combined financial profile. As I mentioned, net sales were $78.9 million, of which comparable net sales were $74.5 million, an increase of 18.2% versus last year.

現在讓我們仔細看看我們的綜合財務狀況。正如我提到的，淨銷售額為 7890 萬美元，其中可比淨銷售額為 7450 萬美元，比去年增長 18.2%。

Breaking these down further, Obagi Skincare sales were $60.4 million, of which comparable net sales were at $55.9 million, increasing 12.1%, the difference between the two related to the carve out of the Chinese distribution business. Milk Makeup net sales was 41.7% to $18.5 million both on a net sales and comparable net sales basis.

進一步細分，歐邦琪護膚品銷售額為 6040 萬美元，其中可比淨銷售額為 5590 萬美元，增長 12.1%，兩者之間的差異與中國分銷業務的分拆有關。根據淨銷售額和可比淨銷售額計算，牛奶化妝品的淨銷售額為 1,850 萬美元，增長了 41.7%。

Therefore, total comparable sales, the better measure of the ongoing operating company, grew 18.2% for Q3.

因此，可比銷售額總額（衡量公司持續運營的更好指標）在第三季度增長了 18.2%。

Group adjusted gross margin for Q3 was $53.5 million or 71.9%, an increase of 155 basis points versus a year ago. Breaking this down further, Obagi Skincare stand-alone adjusted gross margin was $41.9 million or 75% up 20 basis points versus one year ago. Milk Makeup adjusted gross margin was $11.6 million or 62.5% of net sales up a strong 930 basis points from one year ago.

第三季度集團調整後毛利率為 5,350 萬美元，即 71.9%，比去年同期增長 155 個基點。進一步細分，Obagi Skincare 的獨立調整後毛利率為 4190 萬美元，即 75%，比一年前增長了 20 個基點。 Milk Makeup 調整後毛利率為 1,160 萬美元，占淨銷售額的 62.5%，較一年前大幅增長 930 個基點。

Adjusted EBITDA for the group rose 126% to $15.3 million from $6.8 million last year. It is a strong expansion to 19.4% from 9.5% margin in the third quarter of 2021.

該集團調整後 EBITDA 從去年的 680 萬美元增長 126% 至 1,530 萬美元。利潤率從 2021 年第三季度的 9.5% 強勁擴張至 19.4%。

Again, both brands show impressive gross with Obagi Skincare seeing an increase of 109% to 16.3 million for an adjusted EBITDA of 27%. And new makeup generating improvement, an adjusted EBITDA of $1.9 million to a profit of $2.9 million from loss of 1 million in the third quarter of 2021.

兩個品牌的總收入再次令人印象深刻，其中 Obagi Skincare 增長了 109%，達到 1,630 萬美元，調整後 EBITDA 為 27%。新化妝品帶來了改善，2021 年第三季度調整後 EBITDA 為 190 萬美元，利潤為 290 萬美元，虧損 100 萬美元。

The Waldencast central expenses represents ongoing corporate cost and total company costs that are not allocated to our brand. This is shown here on an adjusted EBITDA basis and does not include transaction charges and nonrecurring items.

Waldencast 中心費用代表持續的公司成本和未分配給我們品牌的公司總成本。這裡顯示的是調整後的 EBITDA，不包括交易費用和非經常性項目。

The following slide, we provide our capitalization table as of September 30, 2022. We had total financing line available of $225 million composed of $180 million gross debt and net debt of $149 million.

下面的幻燈片提供了截至 2022 年 9 月 30 日的資本表。我們的可用融資額度總額為 2.25 億美元，其中總債務為 1.8 億美元，淨債務為 1.49 億美元。

It's worth mentioning that we have put in place post quarter end interest hedging of some of our debt. This hedge indicates our interest rate exposure to the extent we have floating rate debt in a rising interest rate environment.

值得一提的是，我們已經對部分債務進行了季度末利息對沖。這種對沖表明我們在利率上升的環境下擁有浮動利率債務的利率風險敞口。

Importantly, our shareholder base is solid and provides strong alignment and stability for the company with Obagi and Milk shareholder owning as of September 30, 2022 approximately 45.9%. The Waldencast founders and sponsor approximately 22.8%.

重要的是，我們的股東基礎穩固，為公司提供了強大的一致性和穩定性，截至 2022 年 9 月 30 日，Obagi 和 Milk 股東持有約 45.9% 的股份。 Waldencast 創始人和發起人持有約 22.8% 的股份。

We have total diluted shares outstanding of approximately 114 million shares, as well as approximately 29.5 million warrants. Most of the sellers, founders, and management have a one-year lockup from the day of the business combination with a small portion of seller shares with a six-month lockup.

我們的稀釋後流通股總數約為 1.14 億股，以及約 2,950 萬份認股權證。大多數賣方、創始人和管理層自企業合併之日起有一年的鎖定期，一小部分賣方股票的鎖定期為六個月。

This diluted share count exclude approximately 3.9 million shares for management equity performance-based awards not yet allocated.

這一稀釋後的股份數量不包括尚未分配的約 390 萬股基於管理層股權績效的獎勵。

Thank you on this. Thanks, Philippe. I will now focus on the development of each of our brands starting with Obagi. As discussed earlier, Q3 has been a strong quarter for Obagi with $60.4 million net sales growing at 12.1% on a comparable net sales basis.

謝謝你。謝謝，菲利普。我現在將重點關注從 Obagi 開始的每個品牌的發展。如前所述，第三季度對 Obagi 來說是一個強勁的季度，淨銷售額為 6,040 萬美元，在可比淨銷售額的基礎上增長了 12.1%。

This is with a healthy gross margin of 75% on an adjusted EBITDA 27%, which is a very significant improvement versus a year ago. Obagi will build on these profitable structural economics to capture sizable growth opportunities.

調整後的 EBITDA 為 27%，毛利率為 75%，與一年前相比有了非常顯著的改善。歐邦琪將在這些有利可圖的結構經濟學的基礎上抓住巨大的增長機會。

Our strategies to do this are very clear. First, continue to expand our U.S. physician channel penetration to maximize our anchoring and our channel core to the brand DNA. Second, continue to expand our portfolio breadth and depth more of our core products in existing accounts, as well as new incremental product launches.

我們的策略非常明確。首先，繼續擴大我們的美國醫生渠道滲透率，最大限度地錨定我們的品牌 DNA 和我們的渠道核心。其次，繼續擴大我們的產品組合廣度和深度，增加現有賬戶中的更多核心產品，以及新的增量產品的推出。

And then lastly, accelerate the expansion of our U.S. and international footprint by replicating our winning U.S. physician led formula in the right channels and geographies. In Q3, our core strategic business in the U.S. physician channel accelerated to now achieve net sales growth of 21% year-to-date.

最後，通過在正確的渠道和地區復制我們成功的美國醫生主導配方，加速我們在美國和國際業務的擴張。第三季度，我們在美國醫生渠道的核心戰略業務加速發展，今年迄今實現淨銷售額增長 21%。

The channel was a top growth driver this quarter for the brand through new, more productive accounts, a wider breadth of portfolio and our new product launches. A key strategy to drive these results have been to ensure our top selling strategic range is pressing deeper in more doors, so consumers have easier access to it.

該渠道通過新的、更高效的客戶、更廣泛的產品組合和新產品的發布，成為本季度該品牌的主要增長動力。推動這些成果的一個關鍵策略是確保我們最暢銷的戰略系列深入更多的領域，以便消費者更容易獲得它。

We introduced a top 20 core SKU strategy, that lineup incentives and activation of hero products that have high consumer demand and are core brand builders. Importantly, these products have very attractive gross margins.

我們推出了Top 20核心SKU策略，對消費需求高、核心品牌建設者的英雄產品進行陣容激勵和激活。重要的是，這些產品的毛利率非常有吸引力。

The top 20 core represents 65% of our physician dispensedchannel business and this is still deepening their footprint in the U.S. by increasing door penetration about plus 4 points versus last year.

排名前 20 的核心公司占我們醫生配發渠道業務的 65%，並且與去年相比，門滲透率增加了約 4 個百分點，這仍在加深他們在美國的足跡。

Now, let me illustrate the strategy with a couple of examples, first Obagi Nu-Derm. This product line is the number one selling franchising of our physician dispensed channel and available in about 74% of our Obagi accounts and is still expanding penetration growing six points.

現在，讓我用幾個例子來說明這一策略，首先是 Obagi Nu-Derm。該產品系列是我們醫生配藥渠道中銷量第一的特許經營產品，在我們約 74% 的 Obagi 賬戶中可用，並且仍在擴大滲透率，增長了 6 個百分點。

Similarly, Obagi's award winning professional key franchise has increased its penetration by six points to reach 60%. Now, beyond expanding and strengthening the foothold of our top clinical products we are delivering against our second strategy, which is to expand the breadth of our portfolio to cover incremental consumer skin needs.

同樣，Obagi 屢獲殊榮的專業關鍵特許經營權的滲透率提高了 6 個百分點，達到 60%。現在，除了擴大和加強我們頂級臨床產品的立足點之外，我們還實施第二個戰略，即擴大我們產品組合的廣度，以滿足消費者不斷增加的皮膚需求。

In May 2022, we launched ELASTIderm Neck and Decolette, an exciting addition to the ELASTIderm franchise. This product targets area-specific size of skin aging on the delicate skin of the neck and upper chest to support skin elasticity and visibly improved necklines, fine lines and sagging.

2022 年 5 月，我們推出了 ELASTIderm Neck and Decolette，這是 ELASTIderm 系列的令人興奮的補充。該產品針對頸部和上胸部嬌嫩皮膚上特定區域的皮膚老化，支持皮膚彈性，明顯改善頸紋、細紋和下垂。

In Q3, the number of accounts carrying the new product grew 13.7%, but importantly, these new launches help grow the total ELASTIderm franchise by 34%. Now, we're also expanding the breadth of our portfolio for innovation into adjacent categories like lash and brow.

第三季度，新產品的賬戶數量增長了 13.7%，但重要的是，這些新產品的推出幫助 EASTIderm 總特許經營權增長了 34%。現在，我們還將創新產品組合的廣度擴展到睫毛和眉毛等相鄰類別。

Our expertise in skin biology and transformative formulas led to a launch of a value Nu-Cil lash. This is a lash growth serum that we launched last year. Now more recently in Q3, we continue our innovation by launching Obagi Nu-Cil eyebrow boosting serum.

我們在皮膚生物學和變革性配方方面的專業知識促成了價值 Nu-Cil 睫毛的推出。這是我們去年推出的睫毛生長精華液。最近在第三季度，我們繼續創新，推出了 Obagi Nu-Cil 眉毛提升精華液。

In just a few months, this new brow serum became the number one selling OTC product and also positively haloed the existing Nu-Cil franchise which grew at 23% over the same time period. Now what is interesting about this product is that Obagi Nu-Cil -- the Obagi Nu-Cil launch has is incremental to Obagi skincare portfolio and also a hero product to unlock the e-comm footprint of the brand.

在短短幾個月內，這款新的眉毛精華液就成為最暢銷的非處方藥產品，也為現有的Nu-Cil 特許經營店帶來了積極的光環，該特許經營店在同一時期內增長了23%。現在，這款產品的有趣之處在於 Obagi Nu-Cil——Obagi Nu-Cil 的推出是 Obagi 護膚品組合的增量，也是解鎖該品牌電子商務足蹟的英雄產品。

The brow and lash serums are respectively number one and number four best sellers of Obagi.com, contributing to fuel the growth of this budding yet booming channel for the brand, which grew 81% in Q3, and expands our footprint in the U.S. to be where consumers expect us, either directly or as a tool to help our partner physicians serve their patients directly.

眉毛和睫毛精華液分別是Obagi.com 上排名第一和第四的暢銷產品，為該品牌這一新興但蓬勃發展的渠道的增長做出了貢獻，該品牌在第三季度增長了81%，並將我們在美國的足跡擴大到消費者期望我們直接或作為幫助我們的合作醫生直接為患者服務的工具。

We have continued expanding our international footprint taking year-to-date, the international business of growing 28%. This growth is driven by Obagi clinical, an enterprise brand offering introduced by the brand in emerging markets.

我們繼續擴大國際業務，今年迄今，國際業務增長了 28%。這一增長是由 Obagi Clinical 推動的，這是該品牌在新興市場推出的企業品牌產品。

Internationalization as we know is a key opportunity and growth driver that we will have more to share in 2023.

我們知道，國際化是一個關鍵的機遇和增長動力，我們將在 2023 年分享更多。

Now, let's go from science led transformative results to clean cool makeup that works with a Gen-Z called brand Milk Makeup.

現在，讓我們從科學引領的變革性成果轉向與 Z 世代合作的“牛奶彩妝”品牌的清爽清爽彩妝。

Milk shows a very strong Q3 at $18.5 million in net sales, a growth of 41.7% versus last year and delivering a much improved gross margin at 62.5% on adjusted EBITDA at 5%. I mentioned earlier that the makeup category has seen a strong relaunch growing ahead of beauty year-to-date and in Q3.

牛奶第三季度的淨銷售額非常強勁，達到 1,850 萬美元，比去年增長 41.7%，毛利率大幅提高，達到 62.5%，調整後 EBITDA 為 5%。我之前提到，今年迄今和第三季度，彩妝品類的重新推出勢頭強勁，領先於美妝品類。

Milk Makeup has significantly outperformed the market with +47.3% growth year-to-date and sell out versus the U.S. elective market on approximately 18%. Now Milk's performance and roadmap for growth is based on three strategic plans.

牛奶化妝品的表現明顯優於市場，今年迄今增長了 47.3%，而美國選擇性市場的銷售量約為 18%。現在，Milk 的業績和增長路線圖基於三個戰略計劃。

First, grow our awareness on our community which despite being a large following and a large community, this brand remains a relatively under marketed brand, it's very much an organic-driven brand. Second, continue to deliver breakthrough innovation to expand our footprint. And lastly, expand our distribution both domestically and internationally.

首先，提高我們對社區的認識，儘管擁有大量追隨者和龐大社區，但該品牌仍然是一個相對營銷不足的品牌，它在很大程度上是一個有機驅動的品牌。其次，繼續提供突破性創新，擴大我們的足跡。最後，擴大我們在國內和國際上的分銷。

To drive our brand awareness, we focus first on our proven strength, organic content across our bestselling icons in the most relevant social media touchpoints. This is an area that remains a strong strength for the brand.

為了提高我們的品牌知名度，我們首先關注我們在最相關的社交媒體接觸點中的暢銷圖標中經過驗證的實力和有機內容。這是該品牌仍然具有強大實力的領域。

The growing awareness saw a significant increase of reach on TikTok with more than $275 million entries on makeup which translated into very strong growth on our core range which represents 50.8% of our business. All growing on high double and triple digits from an already high base. Just remember that many of these products are already top three products from the category at Sephora U.S. This is further building some of our brand icons.

隨著知名度的提高，TikTok 上的影響力顯著增加，化妝品相關條目的價值超過 2.75 億美元，這轉化為我們核心產品的強勁增長，占我們業務的 50.8%。所有這些都在已經很高的基數上以兩位數和三位數的速度增長。請記住，其中許多產品已經成為絲芙蘭美國該類別中的前三名產品，這正在進一步打造我們的一些品牌標誌。

Now building on the success of organic awareness, we're also starting to further accelerate it via top talent collaborations that resonate with our target holdings, this is not something we're doing before. Our very first was with mega influencer Hailey Bieber, focusing on both our core products and our latest innovations and deliver some very strong first results. And we look forward to sharing more of these on our next call.

現在，在有機意識成功的基礎上，我們還開始通過與我們的目標持股產生共鳴的頂尖人才合作來進一步加速它，這不是我們以前做過的事情。我們的第一個項目是與超級影響力海莉·比伯 (Hailey Bieber) 合作，重點關注我們的核心產品和最新創新，並交付了一些非常強勁的初步成果。我們期待在下次電話會議上分享更多這些內容。

Milk Makeup's second pillar of growth is innovation. Innovation is the lifeblood of makeup and Milk has and is still consistently delivering blockbusters which have become bestsellers. This year, innovation is delivering year-to-date 40% stronger net sales than our launches year ago, so much stronger vintage of launches.

牛奶彩妝的第二個增長支柱是創新。創新是化妝品的命脈，Milk 一直在推出暢銷產品。今年，創新帶來的淨銷售額比我們去年推出的產品高出 40%，因此推出的年份更加強勁。

And we're following a very clear strategy. First, reinforcing Milk Makeup's footprint in the big and competitive category of mascara, having raised mascara to already our bestselling KUSH mascara. Home primers, a key strength of our brand, and lastly, strategically expanding into a face category with concealers.

我們正在遵循一個非常明確的策略。首先，加強 Milk Makeup 在睫毛膏這個大而有競爭力的類別中的足跡，將睫毛膏提升為我們最暢銷的 KUSH 睫毛膏。家用底漆是我們品牌的關鍵優勢，最後，戰略性地擴展到遮瑕膏面部類別。

Primer is a core must win category for makeup. We have our Hydrogrip primer, an award-winning hydrating longer primer and a number one bestselling primer at Sephora. On top of that, we launched a second primer, Pore Eclipse, a mattifying and blurring primer that addresses an unmet and incremental consumer need. I am extremely excited to report that Pore Eclipse has become now one of the top three primers of Sephora incrementally to Hydrogrip which maintains its leader position and further grew 62%.

底漆是彩妝中必勝的核心品類。我們擁有 Hydrogrip 底漆、一款屢獲殊榮的長效保濕底漆和絲芙蘭銷量第一的底漆。除此之外，我們還推出了第二款底漆 Pore Eclipse，這是一款啞光和模糊底漆，可滿足未滿足和增量的消費者需求。我非常高興地向大家報告，Pore Eclipse 現已成為絲芙蘭排名前三的底漆之一，而 Hydrogrip 則繼續保持領先地位，並進一步增長了 62%。

Beyond this stronghold, Milk Mkeup is ready to unlock further product opportunities both in makeup and other categories. Our first focus is to unlock the very large $3.8 billion foundation on face market and thus play in a bigger category and expand in a bigger way into high loyalty, high replenishment, stickier areas of the market.

除了這個據點之外，Milk Mkeup 還準備在化妝品和其他類別中釋放更多產品機會。我們的首要重點是解鎖面部市場38億美元的龐大基礎，從而涉足更大的品類，並以更大的方式擴展到高忠誠度、高補貨、更具粘性的市場領域。

In September, we entered the category with a launch of Future Fluid, a multiuse medium to full coverage concealer that covers, sculpts, and hydrates for a lightweight crease-proof natural finish, just beautiful.

9 月份，我們推出了 Future Fluid，這是一款多用途中度至全覆蓋遮瑕膏，可遮蓋、塑形和保濕，打造輕盈、防皺、自然的妝容，非常美麗。

Now recently launched, Future Fluid is showing some very, very positive first step with a very strong 4.6 star rating, high recommendation rates of 90% and super strong supporting PR and in the community.

最近推出的 Future Fluid 邁出了非常非常積極的第一步，擁有非常強大的 4.6 星評級、90% 的高推薦率以及超強大的公關支持和社區支持。

Looking at Milk distribution, the brand is just getting started. We have a very desirable brand asset. Milk is having tremendous white space opportunity to increase penetration and deepen our partnership with Sephora, as well as expand distribution in the U.S. and international.

從牛奶分銷來看，該品牌才剛剛起步。我們擁有非常理想的品牌資產。 Milk 擁有巨大的空白機會來提高滲透率、深化我們與絲芙蘭的合作夥伴關係，以及擴大在美國和國際市場的分銷。

Let's look at international a bit more. Milk Makeup is operating in all Sephora U.S. and Sephora (inaudible) and on Amazon. Milk Makeup is gearing up the strategic launch in the UK. The fourth biggest makeup market in the world with space in K Q4 in this year and Q1 of 2023 as well as being a part of Sephora portfolio that is entering in the UK. So a lot of very exciting events in the UK.

讓我們多看看國際。 Milk Makeup 在美國所有絲芙蘭和絲芙蘭（聽不清）以及亞馬遜上均有經營。 Milk Makeup 正在準備在英國的戰略推出。全球第四大化妝品市場，今年第四季度和 2023 年第一季度將在 K 佔有一席之地，並且是絲芙蘭 (Sephora) 進入英國的產品組合的一部分。英國有很多非常激動人心的活動。

Now in Waldencast, we not only perform on our business KPIs but we're also very proud of our ESG achievements for a very young company. First, our focus on the environment with constantly developing ways to reduce our footprint, all along the supply chain by removing waste and championing recycled and recyclable materials. Second, in Waldencast, we are proud of our diversity across all levels of the organization.

現在在瓦爾登卡斯特，我們不僅在業務 KPI 上表現出色，而且還為一家非常年輕的公司在 ESG 方面取得的成就感到非常自豪。首先，我們關注環境，通過消除廢物並倡導回收和可回收材料，不斷開發減少整個供應鏈足蹟的方法。其次，在瓦爾登卡斯特，我們為組織各個層面的多樣性感到自豪。

Milk Makeup and Obagi are built on inclusivity. Milk social philanthropy focuses on self-expression and equality for underrepresented LGBTAIQ+ and POC groups. And the skin inclusion initiative between Obagi's commitment as leaders in the skincare space to elevate the global vial of diversity and inclusion.

Milk Makeup 和 Obagi 建立在包容性的基礎上。 Milk 社會慈善事業專注於代表性不足的 LGBTAIQ+ 和 POC 群體的自我表達和平等。皮膚包容性倡議與 Obagi 作為護膚領域領導者的承諾之間，致力於提升全球多樣性和包容性。

Obagi is proud to be providing effective science based skin care products for all skin tones and they were the first professional skincare company to clinically test product performance across all Fitzpatrick skin tones. Lastly, despite its young age, Waldencast has equipped itself with a best-in-class governance with its board of directors and processes. And, of course, in October we welcomed Philippe Gautier as the company CFO and COO.

歐邦琪 (Obagi) 很自豪能夠為所有膚色提供基於科學的有效護膚產品，並且他們是第一家針對所有菲茨帕特里克膚色進行臨床測試產品性能的專業護膚公司。最後，儘管華登卡斯特成立時間很短，但其董事會和流程已具備一流的治理能力。當然，十月份我們迎來了 Philippe Gautier 擔任公司首席財務官和首席運營官。

Now to recap, Waldencast brings the operational excellence of a multi brand platform built for growth and profitability. We're a house of brands built for speed and scale. Our balanced portfolio plays in structurally attractive segments that favors our growth ambitions and mitigates risk linked to single category fluctuations. We have with Obagi Skincare and Milk Makeup the leading brands in high growth, attractive and resilient categories.

現在回顧一下，Waldencast 帶來了為實現增長和盈利而構建的多品牌平台的卓越運營。我們是一家為速度和規模而打造的品牌之家。我們平衡的投資組合在結構上有吸引力的領域發揮作用，這有利於我們的增長雄心並減輕與單一類別波動相關的風險。我們的歐邦琪護膚品和牛奶彩妝是高增長、有吸引力和彈性類別的領先品牌。

We have the expertise in managing and scaling beauty brands and businesses globally which we intend to do while keeping an asset-like structure and agility to remain the market responsiveness and speed of our entrepreneurial indie brands.

我們擁有在全球範圍內管理和擴展美容品牌和業務的專業知識，我們打算在保持類似資產的結構和敏捷性的同時保持我們創業獨立品牌的市場響應能力和速度。

Lastly, our management teams have a strong alignment of incentive to drive long-term value creation to operational and capital allocation excellence. We're very pleased with our performance in Q3 and we're very confident and we believe that we're well-positioned to achieve the guidance we outlined with many of you when we announced our business combination in November 2021. With that, I would like now to open the call to take your questions. Thank you.

最後，我們的管理團隊有很強的激勵機制，可以推動長期價值創造，實現卓越的運營和資本配置。我們對第三季度的表現非常滿意，我們非常有信心，我們相信我們有能力實現我們在 2021 年 11 月宣佈業務合併時與你們許多人概述的指導方針。有了這個，我現在我想打開電話來回答您的問題。謝謝。

The floor is now open for your questions. (Operator Instructions).

現在請大家提問。 （操作員說明）。

Our first question comes from the line of Darla Whitlock, from Telsey Advisory Group. Your line is open.

我們的第一個問題來自特爾西諮詢集團的達拉·惠特洛克（Darla Whitlock）。您的線路已開通。

Hi, great. Thank you for taking my questions, and congratulations on the nice quarter. So my first question would be on Obagi. Are the physicians seeing any effects of the macro-environment like their patients are purchasing less take home products and not visiting the dermatologists or physicians as frequently. And is that impacting their ordering and their outlook?

嗨，太好了。感謝您回答我的問題，並祝賀您度過了美好的季度。所以我的第一個問題是關於奧邦吉的。醫生是否看到了宏觀環境的影響，例如他們的患者購買的帶回家的產品減少了，並且不那麼頻繁地去看皮膚科醫生或醫生了。這會影響他們的訂購和前景嗎？

Hi, Darla, thank you. Thank you so much for your question. Before I answer your question, I have to apologize to everyone for our technical difficulties. I guess we are so proud of our brands and the results that we wanted you to hear it twice.

嗨，達拉，謝謝你。非常感謝你的提問。在回答您的問題之前，我必須為我們的技術困難向大家表示歉意。我想我們對我們的品牌和結果感到非常自豪，我們希望您能聽到兩次。

Now answering your questions, we are not seeing any slowdown in consumer demand in the physician channel in the U.S. We had a little bit of a blip during Hurricane Ian, particularly in the Southeast because many of the practices in that region were closed for some time. And that is a quite important region for the brand. But it was not material to our delivery of results in Q3 and Q4. So generally, the short answer to your question is, demand remains strong. We're not seeing yet any impacts of consumption, and I think it's reflecting of the broader beauty, market strength that ultimately we see and that we always talk about.

現在回答您的問題，我們沒有看到美國醫生渠道的消費者需求有任何放緩。在伊恩颶風期間，我們遇到了一點小問題，特別是在東南部，因為該地區的許多診所都關閉了一段時間。這對於該品牌來說是一個非常重要的區域。但這對我們第三季度和第四季度的業績交付並不重要。所以總的來說，對你的問題的簡短回答是，需求仍然強勁。我們還沒有看到消費的任何影響，我認為這反映了我們最終看到並總是談論的更廣泛的美麗和市場實力。

Great, thank you. And then I guess my follow up would be from Milk. Are you seeing any changes in your in your retailer partners' purchasing trends or thoughts on their inventory? We're hearing some comments from some other players.

太好了謝謝。然後我想我的後續行動將來自牛奶。您是否發現零售商合作夥伴的採購趨勢或庫存想法發生了任何變化？我們聽到了其他一些玩家的一些評論。

Yes, generally, I mean, the consumption remains strong. So we are very much a consumption-led business. In the case of Sephora in the US, we are seeing a little bit of pattern changes, particularly on Cole's at Sephora. There's a bit of realignment of inventory that we're seeing on the side of retailers, but overall from a sell in standpoint has not impacted us significantly. And sell out remains, as you saw from the presentation, very strong.

是的，我的意思是，總的來說，消費仍然強勁。因此，我們在很大程度上是一家以消費為主導的企業。以美國絲芙蘭為例，我們看到了一些模式變化，尤其是絲芙蘭的 Cole’s。我們看到零售商方面對庫存進行了一些調整，但總體而言，從銷售的角度來看，並沒有對我們產生重大影響。正如您從演示中看到的那樣，銷售仍然非常強勁。

Great, thank you so much.

太好了，非常感謝。

Your next question comes from the line of Linda Bolton Weiser from D. A. Davidson. Your line is open.

您的下一個問題來自 D.A. Davidson 的 Linda Bolton Weiser。您的線路已開通。

Hi, congratulations on a strong quarter. So I was curious if you're seeing or you think there's any trading down going on in the color cosmetics from Prestige to Mass? Can you comment on whether you think any of that is happening?

您好，祝賀季度表現強勁。所以我很好奇你是否看到或者你認為彩妝正在從高端轉向大眾？您能否評論一下您認為這些情況是否正在發生？

Hi, Linda, how are you? Thank you. We are not seeing trade down. Now keep in mind that we have obviously a partial view of the market in the sense that we compete in the selective side of the market, our distribution is primarily there. But based on the market data that we're seeing, as well as reports of retailers that compete across luxury and mass we are not seeing significant trade down into from luxury into mass.

嗨，琳達，你好嗎？謝謝。我們沒有看到貿易下降。現在請記住，我們顯然對市場有片面的看法，因為我們在市場的選擇性方面進行競爭，我們的分銷主要在那裡。但根據我們看到的市場數據，以及跨奢侈品和大眾市場競爭的零售商的報告，我們沒有看到從奢侈品到大眾市場的大量交易。

Okay. And then just in terms of your primers in Milk and how much that's a focus for you. I know it's a popular thing for online, they talk about dupes, where there's kind of a copycat mass product that copies a Prestige product. And ELF Beauty has come out with a, I guess a dupe of your Hydrogrip primer. How do you kind of prevent share loss when there's these cheaper versions that come out of your Prestige products?

好的。然後就你的牛奶底漆以及它對你的關注程度而言。我知道這在網上很流行，他們談論的是欺騙，其中有一種模仿 Prestige 產品的山寨大眾產品。 ELF Beauty 推出了一款，我猜是你們的 Hydrogrip 底漆的騙局。當您的 Prestige 產品出現這些更便宜的版本時，您如何防止份額損失？

No, thank you, thank you, Linda. I think copying is the best form of flattery. I think what is important and this has been happening in the beauty industry for decades. Ultimately beauty is a business of brands and brand identification. That is why for example, in the in the beauty category, private label or off label, or stuff like that remain a relatively small portion of the business. We are not concerned with that because I think not only Hydrogrip is superior performance product, but also there is a strong affinity of consumers to the brand. It goes just beyond the functional into the emotional connection and values that the brand represents. So, we're not seeing it, I'm not particularly concerned.

不，謝謝你，謝謝你，琳達。我認為抄襲是最好的奉承形式。我認為什麼是重要的，這在美容行業已經發生了幾十年。歸根結底，美容是一個品牌和品牌識別的行業。這就是為什麼在美容品類中，自有品牌或非標籤或類似的東西仍然只佔業務的相對較小部分。我們並不關心這一點，因為我認為 Hydrogrip 不僅是性能優越的產品，而且消費者對該品牌有很強的親和力。它超越了功能性，進入了品牌所代表的情感聯繫和價值觀。所以，我們沒有看到它，我並不特別擔心。

Okay, and then the Milk expansion into Sephora UK in the fourth quarter, can you tell us, is that all of Sephora's stores in the UK or just a subset? And how many is that? How many stores? And what percentage of their stores in the UK?

好的，然後 Milk 在第四季度擴展到絲芙蘭英國，您能告訴我們，這是絲芙蘭在英國的所有商店還是只是其中的一部分？那是多少？有多少家商店？他們在英國的商店比例是多少？

Yes, no, it is, we are expanding in the UK across all Sephora, we're very excited. It just deepens our partnership with fantastic retailer at Sephora that we have. We have great collaboration. We will be across all of them. I cannot share at the moment the number of Sephora stores that will be in the UK, I think that's for Sephora to share, but we expect to be in all of them.

是的，不，是的，我們正在英國所有絲芙蘭擴張，我們非常興奮。它只是加深了我們與出色的零售商絲芙蘭的合作關係。我們有很好的合作。我們將跨越所有這些。目前我無法透露絲芙蘭將在英國開設多少家商店，我認為這是絲芙蘭可以分享的，但我們希望進入所有這些商店。

Again, as a reminder, the floor is now open for your questions. (Operator Instructions). Your next question comes from the line of Andrea Teixeira from JP Morgan. Your line is open.

再次提醒您，現在可以提問。 （操作員說明）。您的下一個問題來自摩根大通的 Andrea Teixeira。您的線路已開通。

Thank you, operator, and good morning, everyone. I hope all is well. And I wanted to just go back a bit from your outlook and then think about pricing and distribution.

謝謝接線員，大家早上好。我希望一切都好。我想回顧一下您的觀點，然後考慮一下定價和分銷。

Is there room for as you look at the price points and obviously you are doing well in some of the key retailers? How should we be thinking of that and then not only for Milk, but also for Obagi? Is there any room for that, in particular Milk of course because of the cost pressures and then profitability being lower. Is that a path to improve profitability through pricing in the near future?

當您查看價格點並且顯然您在一些主要零售商中表現良好時，是否還有空間？我們應該如何看待這一點，不僅是牛奶，而且是歐邦琪？有沒有空間，特別是牛奶，因為成本壓力和盈利能力較低。這是在不久的將來通過定價提高盈利能力的途徑嗎？

And then as we think about distribution into store owners ph, in particular riding the innovation that you're bringing in, is that anything to highlight that is about to come with the shelf reset in the spring or anything to highlight there?

然後，當我們考慮向商店業主分配產品時，特別是利用您所引入的創新，有什麼值得強調的，以及春季貨架重置即將到來的事情，或者有什麼值得強調的嗎？

Yes. Thanks, Andrea. On pricing, first of all, we have taken and we will continue to take pricing as we see the consumer opportunities there, you have to keep in mind that we are in the whole scheme of things a relatively small player, and what we follow is the pricing most of larger players. We have already seen, as you can see from the gross margin results, a significant improvement in gross margin. On Milk, a lot of that gross margin is, nearly half of that margin increase, it comes from a combination of pricing and improved gross to net management which ultimately is on a net price basis a way in which we move gross margin ahead.

是的。謝謝，安德里亞。在定價方面，首先，我們已經並將繼續採取定價，因為我們看到了那裡的消費者機會，你必須記住，我們在整個計劃中是一個相對較小的參與者，我們遵循的是大多數大型企業的定價。正如您從毛利率結果中看到的那樣，我們已經看到毛利率的顯著改善。在牛奶方面，毛利率的很大一部分是，近一半的利潤增長，來自定價和改進的毛淨管理的結合，這最終是在淨價格的基礎上，我們提高毛利率的一種方式。

So, from a pricing standpoint, we think that there is still room in the brand to continue to strengthen that both in terms of absolute price as well as gross to net margin. Our innovation on a go-forward basis, as I mentioned, we are very excited of our launch of Future Fuids on the, you know, the big, big face category. It is a business that is very sticky, high loyalty, very exciting. And we'll be happy to report for that. That comes over the next few months.

因此，從定價的角度來看，我們認為該品牌在絕對價格和毛利率方面仍有繼續加強的空間。正如我所提到的，我們的創新是在不斷前進的基礎上，我們對在大臉類別上推出 Future Fuids 感到非常興奮。這是一項粘性非常大、忠誠度很高、非常令人興奮的業務。我們很樂意報告這一點。這將在接下來的幾個月內實現。

And that's a full distribution, Michel? It's a full distribution into Sephora?

這是完整的發行版，米歇爾？這是絲芙蘭的完整分銷嗎？

Yes, that is correct. Future Fluid is in distribution in Sephora.

對，那是正確的。 Future Fluid 在絲芙蘭有售。

Great. Thank you. Appreciate...

偉大的。謝謝。欣賞...

Thank you.

謝謝。

Your next question comes from the line of Darla Whitlock from Telsey Advisory Group. Your line is open.

您的下一個問題來自 Telsey Advisory Group 的 Darla Whitlock。您的線路已開通。

Hi. Great. Sorry for jumping on again, but I just wanted to follow up and see if you can provide any details on Obagi.com, how that's performing, any changes as it relates to trends in physicians' offices and are these consumers new to Obagi or are they existing customers that have already purchased the brand maybe through physician doctors? Thank you.

你好。偉大的。很抱歉再次插話，但我只是想跟進一下，看看您是否可以提供Obagi.com 的任何詳細信息、其表現如何、與醫生辦公室趨勢相關的任何變化，以及這些消費者是Obagi 的新用戶還是正在使用Obagi 的用戶。他們現有的客戶可能已經通過醫生購買了該品牌？謝謝。

Of course. Thank you. So, Obagi.com is still a relatively small percentage of the business. It was only launched last year. That said, we are very encouraged by its performance year to date with more than double the business. And what is very interesting and exciting on this channel is that we're seeing a different consumer profile. It tends to younger, it tends to be looking for different products than we're already seeing in the physician-dispensed channel.

當然。謝謝。因此，Obagi.com 在該業務中所佔的比例仍然相對較小。它是去年才推出的。也就是說，我們對其今年迄今為止的業績（業務增長了一倍多）感到非常鼓舞。在這個渠道上非常有趣和令人興奮的是我們看到了不同的消費者概況。它往往更年輕，它往往尋找與我們在醫生配藥渠道中已經看到的不同的產品。

So, we did a plus 81% in Q3 and as I said, more than double the business, the business this year. And as I said, consumer profile is a little bit different. The new C launch of lash and serum as I've mentioned in the call has really been instrumental in attracting these new consumers and being served in a way that is direct, completely different than through the physician dispensed channel.

因此，我們在第三季度的業績增長了 81%，正如我所說，是今年業務的兩倍多。正如我所說，消費者的情況有些不同。正如我在電話中提到的，新 C 推出的睫毛和精華素確實有助於吸引這些新消費者，並以一種直接的、完全不同於通過醫生配藥渠道的方式提供服務。

Great. Thank you.

偉大的。謝謝。

Your final question comes from the line of Olivia Tong from Raymond James. Your line is open.

你的最後一個問題來自雷蒙德·詹姆斯 (Raymond James) 的奧利維亞·唐 (Olivia Tong)。您的線路已開通。

Sure. Thanks. Good morning. Apologies I got on late, but still hopeful on the question I'm going to ask.

當然。謝謝。早上好。抱歉我遲到了，但對我要問的問題仍然充滿希望。

But just I want to ask you a little bit about, you know, how dynamic and how much the environment has changed in the last couple of months and how that impacts your thoughts about your strategy, particularly with respect to M&A and the future acquisitions particularly given the change in rates and what have you. And then on top of that, just thinking about size of acquisition, relative buckets in terms of funding, if you could add a little bit there, that would be helpful. Thank you so much.

但我想問你一點，你知道，過去幾個月環境發生了多大的動態和變化，以及這如何影響你對戰略的看法，特別是在併購和未來的收購方面考慮到利率的變化以及你有什麼。除此之外，只要考慮收購的規模、資金方面的相對情況，如果你可以在其中添加一點，那將會有所幫助。太感謝了。

Olivia, great to hear from you. In terms of the environment, as I mentioned, the market remains dynamic. Very, very dynamic.

奧利維亞，很高興收到你的來信。就環境而言，正如我所提到的，市場仍然充滿活力。非常非常有活力。

Now, it's important to understand that given our size of the business and the growth opportunities we have ahead, yes, we look at the market of always a point of information on how the market is performing and the consumer is evolving, but at the end of the day, on a business of our size and the growth opportunities we have, really our growth is more in our hands and our ability to grow awareness, expand distribution, launch exciting products, et cetera, et cetera.

現在，重要的是要了解，鑑於我們的業務規模和未來的增長機會，是的，我們始終關注市場的一個信息點，即市場表現和消費者如何發展，但最終如今，對於我們這樣規模的企業和我們擁有的增長機會來說，我們的增長實際上更多地掌握在我們自己的手中，以及我們提高知名度、擴大分銷、推出令人興奮的產品等等的能力。

And the market what informs, of course, our decisions. We think that our growth given our size and the growth opportunities ahead, we less impacted whether the market moves up or down in our reports. That's it. The market remains dynamic. From an M&A standpoint, well, we just started. We are a company that officially is about three and a half months old. We are very focused on making sure that we are delivering against our commitment, integration, et cetera, but we're always looking at M&A opportunities.

當然，市場也影響著我們的決策。我們認為，考慮到我們的規模和未來的增長機會，我們的增長對報告中市場上漲或下跌的影響較小。就是這樣。市場依然充滿活力。從併購的角度來看，我們才剛剛開始。我們是一家正式成立大約三個半月的公司。我們非常注重確保兌現我們的承諾、整合等，但我們一直在尋找併購機會。

The great thing about this business and we have a constant flow of potential opportunities is that there is a significant number of very attractive targets that could be part of a world-class platform. In terms of the playbook for us in M&A, I would say Obagi and Milk are very representative of that playbook.

這項業務的偉大之處在於，我們擁有源源不斷的潛在機會，其中有大量非常有吸引力的目標可以成為世界級平台的一部分。就我們的併購策略而言，我認為 Obagi 和 Milk 非常具有代表性。

What we want is number one brands, we say, there are a lot of brands that are collections of products that masquerade themselves as brands or performance marketing engines that masquerade as brands, we want a brand with an emotional authentic meaningful connection to its community. In terms of size, we think that -- if there's a range, again the playbook is probably brands as low as probably around 20, $25 million to $200 million. These are brands that already there's a proof of concept.

我們想要的是第一品牌，我們說，有很多品牌是偽裝成品牌的產品集合，或者偽裝成品牌的績效營銷引擎，我們想要一個與其社區有情感上真實有意義的聯繫的品牌。就規模而言，我們認為，如果有一個範圍，那麼劇本可能低至 20、2500 萬美元到 2 億美元左右的品牌。這些品牌已經有了概念驗證。

They are already coming to a point especially in beauty where they are about to be or are already profitable and cash-generating, and importantly brands that we can use our platform to grow and expand and drive this profitability. So, the playbook is very similar.

他們已經達到了這樣的程度，特別是在美容領域，他們即將或已經盈利並產生現金，重要的是我們可以利用我們的平台來發展和擴大並推動這種盈利能力的品牌。所以，劇本非常相似。

In terms of how fast we would jump into the next one, I don't know, we are looking at great opportunity. There's ton of them out there and we'll pull the trigger when we find the absolute great opportunity to go forward.

至於我們會以多快的速度進入下一個，我不知道，我們正在尋找巨大的機會。那裡有很多這樣的人，當我們找到絕對的前進機會時，我們就會扣動扳機。

Great. Thank you.

偉大的。謝謝。

That does conclude today's questions. I would now like to turn the call over to Michel Brousset for closing remarks.

今天的問題就到此結束了。現在我想將電話轉給米歇爾·布魯塞 (Michel Brousset) 致閉幕詞。

Thank you very much. Well, thank you very much for being with us today. We're very pleased with our Q3 results. As Phillip said and I always said in the previous remarks, we do not manage the business on a quarterly basis. We manage them on an annual basis. It is important that we view the results in that context. We are very excited about what we're building.

非常感謝。嗯，非常感謝您今天和我們在一起。我們對第三季度的結果非常滿意。正如菲利普所說以及我在之前的評論中一直所說的那樣，我們不按季度管理業務。我們每年對它們進行管理。重要的是我們要在這種背景下看待結果。我們對我們正在構建的東西感到非常興奮。

We're more excited than ever about the brands, the teams, the prospects we have. And the more we are operating the business the more opportunities we see for a great value creation. We have two leading brands that are uniquely positioned and anchored in the most attractive parts of beauty and we are building a platform that have that expertise and scale to grow the brands profitable. So, thank you for being with us and appreciate your questions.

我們對我們擁有的品牌、團隊和前景比以往任何時候都更加興奮。我們經營業務越多，我們看到的創造巨大價值的機會就越多。我們擁有兩個領先品牌，它們定位獨特，立足於美容界最具吸引力的部分，我們正在建立一個擁有專業知識和規模的平台，以提高品牌的盈利能力。所以，感謝您與我們在一起並感謝您提出的問題。

Thank you, ladies and gentlemen. This does conclude today's call. Thank you for your participation. You may now disconnect.

謝謝你們，女士們、先生們。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。