Waldencast PLC (WALD) 2024 Q2 法說會逐字稿

Greetings. Welcome to the Waldencast second quarter and first half 2024 earnings call. (Operator Instructions) Please note this conference is being recorded. I will now turn the conference over to Allison Malkin of ICR. Allison, you may begin.

問候。歡迎參加 Waldencast 2024 年第二季和上半年財報電話會議。（操作員說明）請注意，本次會議正在錄製中。我現在將會議交給 ICR 的艾莉森馬爾金 (Allison Malkin)。艾莉森，你可以開始了。

Thank you, and welcome to the Waldencast PLC second-quarter fiscal 2024 earnings call. With me today are Michel Brousset, Founder and Chief Executive Officer; and Manuel Manfredi, Chief Financial Officer. For today's call, Michel will begin with an update on our business and vision and discuss the company's performance within the context of the beauty market. Manuel will follow with a review of the second quarter and first half performance and provide our fiscal 2024 outlook. Following this, Michel will share the strategic growth initiatives for our Milk Makeup and Obagi Medical brand.

謝謝，歡迎參加 Waldencast PLC 2024 財年第二季財報電話會議。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)；曼努埃爾·曼弗雷迪（Manuel Manfredi），財務長。在今天的電話會議中，米歇爾將首先介紹我們的業務和願景的最新情況，並討論公司在美容市場背景下的表現。Manuel 隨後將回顧第二季和上半年的業績，並提供我們的 2024 財年展望。隨後，米歇爾將分享我們的牛奶化妝品和歐邦琪醫療品牌的策略性成長計畫。

After the prepared remarks, the operator will open the call to take questions. 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 of Waldencast business and other matters referenced in the company's earnings release issued yesterday. 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 statements 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 at www.sec.gov and on the Investor Relations section of the company's website at ir.waldencast.com, and should be read in conjunction with the section entitled Risk Factors in the company's annual report on Form 20-F filed with the Securities and Exchange Commission on April 30, 2024. 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.

準備好發言後，接線員將打開電話回答問題。在開始之前，我想提醒您，管理層今天將發表某些前瞻性聲明，包括有關 Waldencast 業務前景的聲明以及公司昨天發布的收益報告中提到的其他事項。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有重大差異。有關這些聲明的更多信息，請參見公司收益報告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聲明的警示性說明標題下的內容，這些文件可在www.sec.gov 和投資者關係部分取得請參閱本公司網站 ir.waldencast.com，並應結合本公司於 2024 年 4 月 30 日向證券交易委員會提交的 20-F 表格年度報告中標題為「風險因素」的部分閱讀。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。

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 measures should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. You will find additional information regarding the definition of 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, which will remain available until the company's next earnings call. I will now turn the call over to Michel Brousset.

此外，在這次電話會議中，管理階層將討論某些非公認會計準則財務指標，管理階層認為這些指標有助於評估公司的表現。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。您將在公司收益報告中找到有關這些非公認會計原則財務指標的定義以及這些非公認會計原則與最直接可比較的公認會計原則指標的調節的更多資訊。該電話會議的現場直播還可以在公司網站 ir.waldencast.com 的投資者關係部分進行，該部分將持續到公司下一次財報電話會議為止。我現在將把電話轉給米歇爾·布魯塞。

Thank you, Allison, and good morning, everyone. I am pleased to speak to you today and share our strong second quarter performance that saw accelerated comparable growth of 25.7% versus a first quarter increase of 21% and capped a very successful first half of the year. Our performance demonstrates the power of our multi-brand platform and the progress we're making to achieve our vision for Waldencast. This vision is to build 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. As you have heard me say before, we're a beauty pure player because beauty is the most beautiful of industries, one that has shown impressively consistent growth, strong profitability, and resilience.

謝謝你，艾莉森，大家早安。我很高興今天與您交談並分享我們強勁的第二季度業績，與第一季的 21% 相比，可比增長率加快了 25.7%，並為今年上半年的成功奠定了基礎。我們的業績證明了我們多品牌平台的力量以及我們在實現 Waldencast 願景方面所取得的進展。這個願景是建立一個全球一流的美容和健康平台，創造、收購、加速和擴大下一代高成長、高利潤、目標驅動的品牌。正如您之前聽我說過的，我們是一家純粹的美容行業，因為美容是最美麗的行業，它表現出令人印象深刻的持續增長、強勁的盈利能力和韌性。

The US market for prestige beauty remains strong, up 8% for the first half. This follows significant growth over the past two years as the category continues to normalize following unprecedented growth. For the first half, prestige skincare grew 7% and prestige makeup grew 5%. Circana notes that this growth reflects an accelerated bifurcation emerging in the beauty industry, highlighted by the continued growth in prestige relative to mass and is indicative of the continued premiumization of the beauty category with consumers looking for higher levels of efficacy and performance.

美國高端美容市場依然強勁，上半年成長了 8%。在此之前的兩年裡，隨著該類別在前所未有的增長之後繼續正常化，出現了顯著增長。上半年，高端護膚品成長了 7%，高端彩妝成長了 5%。Circana 指出，這種增長反映了美容行業正在加速出現分化，其特點是相對於大眾的聲望持續增長，也表明美容類別的持續高端化，消費者尋求更高水平的功效和性能。

Our growth has far exceeded the category as our brands, Milk Makeup and Obagi Medical, are only at the beginning of their ambition to be market-leading brands in their respective categories and are very well positioned to deliver consistent growth over time. We have two of the most exciting brands in the two biggest beauty categories, makeup, number one, and skincare, number two, in the US prestige beauty market. Our brands play in the fastest-growing subsegments of these two categories, prestige clean makeup and professional science-led skincare.

我們的成長遠遠超出了這個類別，因為我們的品牌 Milk Makeup 和 Obagi Medical 才剛開始成為各自類別中的市場領導品牌，並且已經做好了長期持續成長的準備。我們在美國高端美容市場的兩個最大的美容類別中擁有兩個最令人興奮的品牌，即排名第一的化妝品和排名第二的護膚品。我們的品牌涉足這兩個類別中成長最快的細分市場：高端潔淨彩妝和專業科學主導的護膚品。

Obagi Medical outperformed the US prestige skincare market by a factor of 5x in the first half and continues its clear advantage as the number one physician-recommended medical-ready skincare brand for top-ranked patients' needs, leading in the most attractive fast-growing subsegment of premium skincare. With its breakthrough patented technology and transformative clinically proven results, it unlocks high loyalty from both consumers and physicians and it is perfectly positioned to answer the growing consumer needs for high-performance effective skincare, while also paving the way for expansion to other categories.

上半年，歐邦琪醫療(Obagi Medical) 的表現超越美國高端護膚市場5 倍，並繼續保持其作為醫生推薦第一醫療護膚品牌的明顯優勢，滿足頂級患者的需求，在最具吸引力的快速增長領域中處於領先地位高級護膚品的細分市場。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，同時也為擴展到其他類別鋪平了道路。

Milk Makeup grew 3 times faster than the US prestige makeup market in the first half. The brand, a cult-favorite Gen Z brand, benefits organically from an engaged and diverse community due to its cultural relevance and iconic products. It is a leading clean makeup brand, the number two clean brand at Sephora US, and is quickly building a global following with leadership positions in several international markets. Milk Makeup has accomplished this through its relevant promise of cool, clean makeup that works.

上半年，牛奶彩妝的成長速度是美國高端彩妝市場的三倍。該品牌是深受 Z 世代喜愛的品牌，由於其文化相關性和標誌性產品，從積極參與的多元化社區中有機受益。它是領先的清潔彩妝品牌，是絲芙蘭美國排名第二的清潔品牌，並正在迅速建立全球追隨者，並在多個國際市場佔據領導地位。Milk Makeup 透過其清爽、乾淨、有效的化妝品的相關承諾實現了這一點。

But we're just at the beginning of our journey to building a best-in-class global multi-brand portfolio. Today, we possess two powerful brands that have garnered critical mass while still having substantial runway for growth. With Milk Makeup and Obagi Medical, we have a solid foundation in prestige skin and color with a core business in the US and a growing presence in Europe and the Asia-Pac region. We are achieving a strong growth in attractive channels and expect this momentum to continue as we drive awareness of both brands beyond its core communities, continue to introduce more blockbuster innovations, and expand into other regions and categories.

但我們才剛開始建立一流的全球多品牌組合之旅。如今，我們擁有兩個強大的品牌，它們已經獲得了足夠的關注度，同時仍然擁有巨大的成長空間。憑藉 Milk Makeup 和 Obagi Medical，我們在高端皮膚和色彩領域奠定了堅實的基礎，核心業務位於美國，並在歐洲和亞太地區不斷擴大業務。我們在有吸引力的管道上實現了強勁增長，並預計隨著我們將兩個品牌的知名度提升到核心社區之外，繼續推出更多重磅創新，並擴展到其他地區和類別，這種勢頭將持續下去。

Our increasing success with both brands and the power of our unique pure-play beauty ecosystem gives us a distinct competitive strength in attracting other brands and founders to our platform. Our platform, built for scale and speed, will only get better as we create and acquire more brands and scale them profitably and efficiently.

我們在兩個品牌上取得的日益成功以及我們獨特的純美容生態系統的力量使我們在吸引其他品牌和創始人加入我們的平台方面具有獨特的競爭優勢。我們的平台是為規模和速度而建構的，只有當我們創建和收購更多品牌並以盈利和高效的方式擴展它們時，我們的平台才會變得更好。

And now, I will turn the call over to Manuel to review our financials and outlook.

現在，我將把電話轉給曼努埃爾，以審查我們的財務狀況和前景。

Thank you, Michel, and good morning, everyone. I'm pleased to share our strong second quarter and first half results for 2024 with you today. These results highlight the continued success of our strategic initiatives and our commitment to delivering shareholder value. Today, I'll focus on our adjusted financial measures. You can find a reconciliation to GAAP financial measures in our press release from yesterday and in the appendix of this morning's presentation.

謝謝你，米歇爾，大家早安。我很高興今天與您分享我們 2024 年第二季和上半年的強勁業績。這些結果凸顯了我們策略舉措的持續成功以及我們對提供股東價值的承諾。今天，我將重點討論我們調整後的財務指標。您可以在我們昨天的新聞稿和今天早上演示的附錄中找到 GAAP 財務指標的調整表。

Let's dive into the highlights of our second quarter performance. We saw a robust 25.7% year-over-year comparable growth, which exceeded the 21% growth we achieved in Q1, aligning with our prior guidance. We continue to see significant year-over-year expansion in our adjusted gross-profit margin. And we maintained a double-digit adjusted EBITDA margin, positioning us well to meet our annual profitability goals. A key point to note is that, as we have indicated in the past, while we monitor our business daily, we plan on it on an annual basis.

讓我們深入了解第二季業績的亮點。我們看到年增 25.7%，超過了第一季 21% 的成長，與我們先前的指引一致。我們繼續看到調整後的毛利率比去年同期大幅增加。我們保持了兩位數的調整後 EBITDA 利潤率，這使我們能夠很好地實現年度獲利目標。需要注意的一個關鍵點是，正如我們過去所指出的，在我們每天監控我們的業務的同時，我們每年都會制定計劃。

This annual planning approach allows us to navigate quarterly fluctuations without compromising our strategic objectives. We are pleased to achieve this result despite the fact that in both brands we experienced out-of-stocks in some of our key products, particularly some of our key launches, as strong consumer demand outstripped our expectations. Specifically, for second quarter, net revenue was $63.3 million, reflecting 25.7% comparable growth for Q2 2023. Obagi Medical and Milk Makeup achieved 30.9% and 20% growth, respectively. Adjusted gross profit came in at $47.5 million, with an adjusted gross margin of 75.0%, a notable 650 basis point increase from Q2 2023.

這種年度規劃方法使我們能夠在不影響策略目標的情況下應對季度波動。儘管由於強勁的消費者需求超出了我們的預期，我們在這兩個品牌中的一些關鍵產品，特別是我們的一些關鍵產品都出現了缺貨的情況，但我們很高興取得這一成果。具體來說，第二季的淨收入為 6,330 萬美元，反映出 2023 年第二季的可比成長 25.7%。歐邦琪醫療和乳妝分別實現了30.9%和20%的成長。調整後毛利為 4,750 萬美元，調整後毛利率為 75.0%，較 2023 年第二季顯著成長 650 個基點。

Adjusted EBITDA was $6.3 million, up $2.4 million from Q2 2023, as strong revenue growth and gross margin expansion more than offset important investments to support our team, marketing, and sales business drivers. Building on our strong second quarter, our first half 2024 has been excellent. For the first half of 2024, net revenue was $131.6 million, marking a 23.1% increase from the first half of 2023. Adjusted gross profit increased by 36.4% to $99.5 million, with the adjusted gross margin expanding significantly by 890 basis points to 75.6%. Adjusted EBITDA rose by 27.2% to $17.7 million, reflecting a strong sales growth and improved gross margins, which more than offset our investment spending. This led to an adjusted EBITDA margin of 13.4% for the first half, up from 12.7% in the same period last year.

調整後 EBITDA 為 630 萬美元，比 2023 年第二季增加 240 萬美元，強勁的收入成長和毛利率擴張抵消了支持我們團隊、行銷和銷售業務驅動力的重要投資。在第二季強勁表現的基礎上，2024 年上半年表現非常出色。2024年上半年，淨收入為1.316億美元，較2023年上半年成長23.1%。調整後毛利成長 36.4%，達到 9,950 萬美元，調整後毛利率大幅成長 890 個基點，達到 75.6%。調整後 EBITDA 成長 27.2% 至 1,770 萬美元，反映出強勁的銷售成長和毛利率的提高，這遠遠抵消了我們的投資支出。這導致上半年調整後 EBITDA 利潤率為 13.4%，高於去年同期的 12.7%。

Now looking ahead, our strong first half performance, the ongoing success of our growth strategy, and the operational efficiencies that we have implemented positions us well to maintain our positive momentum throughout the year and beyond. For the full year 2024, we expect comparable revenue growth will continue to accelerate beyond the 25.7% increase we saw in Q2, raising our guidance communicated in Q1. Adjusted EBITDA margin is expected to land in the mid-teens, aligned with our prior guidance, and substantially higher than the 11.2% achieved in 2023. This improvement comes even as we continue to invest in our sales and marketing growth drivers. We expect second-half adjusted EBITDA to exceed first-half results, both in absolute terms and as a percentage of revenue.

現在展望未來，我們上半年的強勁表現、成長策略的持續成功以及我們實施的營運效率使我們能夠在全年及以後保持積極的勢頭。對於 2024 年全年，我們預計可比營收成長將繼續加速，超過第二季 25.7% 的增幅，從而提高我們在第一季傳達的指導。調整後的 EBITDA 利潤率預計將達到 15%左右，與我們先前的指導一致，並且遠高於 2023 年實現的 11.2%。儘管我們繼續投資於銷售和行銷成長動力，但這種改善還是出現了。我們預計下半年調整後的 EBITDA 將超過上半年的業績，無論是絕對值還是佔收入的百分比。

Turning now to our balance sheet and cash flow. We ended the first half of 2024 with a solid financial position, with no near-term maturities and ample liquidity to fund our asset-light business model. As of June 30, 2024, cash and cash equivalents were $19.7 million. We also have $30 million available on our revolving credit facility. And net debt totaled $155 million. We achieved positive operating cash flow, excluding non-recurring costs associated with legal and advisory fees. As of August 15, 2024, share outstanding were 122.7 million compared to 122.2 million as of April 15, 2024. And now I will turn the call over to Michel.

現在轉向我們的資產負債表和現金流。截至 2024 年上半年，我們的財務狀況穩健，沒有短期到期的債券，並且有充足的流動性為我們的輕資產業務模式提供資金。截至2024年6月30日，現金及現金等價物為1,970萬美元。我們的循環信貸額度還有 3000 萬美元。淨債務總額為 1.55 億美元。我們實現了正的營運現金流，不包括與法律和諮詢費用相關的非經常性成本。截至2024年8月15日，流通股數為1.227億股，而截至2024年4月15日為1.222億股。現在我將把電話轉給米歇爾。

Thank you, Manuel. Now let's look at the performance by brands, starting with Milk Makeup. As Manuel shared with you, in the second quarter, Milk Makeup generated a net revenue of $28.7 million, an increase of 20% versus a year ago. Growth was driven by the increased buzz and awareness of the brand, the success of our innovation and the continued strength in international markets. Unprecedented demand and in particular the fantastic success of our Cooling Water Jelly Tints launch led to some out-of-stocks, which dampened the growth potential in the early part of the quarter.

謝謝你，曼努埃爾。現在讓我們來看看各個品牌的表現，首先是牛奶彩妝。正如 Manuel 與大家分享的那樣，Milk Makeup 第二季淨收入為 2,870 萬美元，年增 20%。品牌知名度和知名度的提高、創新的成功以及國際市場的持續實力推動了成長。空前的需求，特別是我們的清涼果凍唇彩的推出取得了巨大成功，導致了一些缺貨，從而抑制了本季度初期的成長潛力。

That said, revenue accelerated toward the end of the quarter across geographies as we increased inventory levels to support the higher level of demand. Adjusted gross profit margin of 69.7% grew an impressive 360 basis points versus Q2 last year as we continued to deploy our operational efficiency playbook and benefited from increased efficiencies in sources and distribution, as well as better management of our inventory. Adjusted EBITDA rose 48% to $5.7 million, while adjusted EBITDA margin of 19.8% expanded 370 basis points from the second quarter of 2023, as the strong revenue and gross margin expansion was mitigated by increased sales and marketing investment in support of key launches that will set us up for acceleration in the second half.

也就是說，隨著我們增加庫存水準以支持更高的需求水平，各地區的收入在本季末加速。調整後的毛利率為69.7%，與去年第二季相比成長了360 個基點，令人印象深刻，因為我們繼續部署營運效率手冊，並受益於來源和分銷效率的提高以及更好的庫存管理。調整後的EBITDA 成長48%，達到570 萬美元，而調整後的EBITDA 利潤率為19.8%，較2023 年第二季擴大了370 個基點，因為為支持關鍵產品發布而增加的銷售和行銷投資削弱了強勁的收入和毛利率擴張。

Now for the first half, Milk Makeup generated net revenue of $63.2 million, increasing 20.8% from the first half of 2023. Adjusted gross profit rose 29.2% to $44.6 million, with gross profit margin expansion of 460 basis points to 70.6%. And adjusted EBITDA rose 23.4% to $15.7 million from $12.7 million in the first half of 2023, with adjusted EBITDA margin expanding to 24.9% of net revenue.

上半年，Milk Makeup 的淨收入為 6,320 萬美元，較 2023 年上半年成長 20.8%。調整後毛利成長 29.2%，達到 4,460 萬美元，毛利率擴大 460 個基點，達到 70.6%。調整後 EBITDA 從 2023 年上半年的 1,270 萬美元成長 23.4% 至 1,570 萬美元，調整後 EBITDA 利潤率擴大至淨收入的 24.9%。

Milk Makeup is quickly becoming a true global powerhouse, with consumers around the world embracing what we stand for and our consistent ability to deliver sought-after innovation. The brand saw impressive growth across geographies during the first half of the year, with revenue up 15.5% in North America and 33.3% internationally. Our vision for Milk Makeup is to be the number one choice of the next generation, uniquely connecting with our needs, values, and aspirations. Our mission is to create a space in beauty for all, always fearless in innovation, agility and self-expression.

Milk Makeup 正迅速成為真正的全球巨頭，世界各地的消費者都接受我們所代表的理念以及我們提供廣受歡迎的創新的一貫能力。上半年，該品牌在各個地區均取得了令人矚目的成長，北美地區營收成長了 15.5%，國際營收成長了 33.3%。我們對牛奶化妝品的願景是成為下一代的第一選擇，以獨特的方式與我們的需求、價值觀和願望聯繫起來。我們的使命是為所有人創造一個美麗的空間，始終無所畏懼地創新、敏捷和自我表達。

Our path is clear, guided by our vision and anchored by our mission to create beauty for all. Number one, build a brand that is highly relevant to our audience today and tomorrow. Two, nurture a global community of highly engaged consumers and partners. Three, delight with products that are famously unique and tangibly better. Milk products are like no one else's.

我們的道路是明確的，以我們的願景為指導，以我們為所有人創造美麗的使命為基礎。第一，建立一個與我們今天和明天的受眾高度相關的品牌。第二，培育一個由高度參與的消費者和合作夥伴組成的全球社群。第三，享受以獨特和明顯更好的產品而聞名的產品。奶製品與眾不同。

Four, expand our presence through distribution that is always brand building and community connecting. Five, continue to fuel the brand to deliver strong, profitable growth. And lastly, lift our culture of creativity inside and out. Our north star is our community of creators, listening to them, seeing them, understanding them, feeling their creativity and self-expression, helping them live their look. We are the tools, and they are the artists. We inspire, we never prescribe.

第四，透過始終致力於品牌建立和社區聯繫的分銷來擴大我們的影響力。五、持續推動品牌實現強勁的獲利成長。最後，從內到外提升我們的創造力文化。我們的北極星是我們的創作者社區，傾聽他們的聲音，看到他們，理解他們，感受他們的創造力和自我表達，幫助他們實現自己的形象。我們是工具，他們是藝術家。我們啟發，我們從不規定。

Our connection to our community and celebration of their self-expression led Milk Makeup to double its earned media value year on year and climb seven ranks versus January 2023, a true measure of growing desirability and awareness and an important predictor of a brand's future growth. Awareness driven by outstanding social results across the two main metrics, larger community and higher engagement. Our new followers grew by 538,000 in the front half of 2024, which is an impressive 254% acceleration year on year. Most video views almost doubled at 95%, up to 89 million views, with engagement jumping by 286%.

我們與社區的聯繫以及對他們自我表達的慶祝使得Milk Makeup 的贏得媒體價值同比翻了一番，與2023 年1 月相比上升了7 個排名，這是衡量需求和意識不斷增長的真正指標，也是品牌未來成長的重要預測指標。意識由兩個主要指標（更大的社區和更高的參與度）的出色社會成果所驅動。2024 年上半年，我們的新粉絲成長了 538,000 名，年增幅高達 254%，令人印象深刻。大多數影片觀看次數幾乎翻了一番，達到 95%，達到 8,900 萬次，參與度躍升 286%。

This community social buzz is amplified by strong editorial coverage, with 5.4 billion press coverage impression in the front half of 2024, of which 1.4 billion is new products alone, growing 60% year-on-year, featuring in particular our viral Cooling Water Jelly Tint and our other launches in all major publications, an illustration of the power of products that are famously unique, highly desirable, and performance that delivers on consumer needs. The secret sauce of our product innovation is a single-minded focus on products that deliver, are simple yet powerful consumer proposition of clean, cool, beauty that works. We deliver never-before-seen innovation formats that deliver strongly on the performance benefit and stay true to our brand and community values, always vegan, clean, and cruelty-free. Our products look and feel like no one else's and are highly recognizable in the category that at times is a sea of sameness. Over the years, we have built strong cult icons and award-winning franchises in prime and set and sticks, and we'll continue fueling those strongholds.

強大的社論報導放大了社區的社交熱度，2024 年上半年媒體報道曝光量達到 54 億次，其中僅新產品就有 14 億次，同比增長 60%，尤其是我們的病毒式清涼果果凍Tint 和我們在所有主要出版物中發布的其他產品，展示了產品的力量，這些產品以獨特、非常理想和滿足消費者需求的性能而聞名。我們產品創新的秘訣是一心一意地專注於提供簡單而強大的消費者主張的產品，即乾淨、酷、美麗、有效。我們提供前所未見的創新形式，這些形式可以大大提高性能效益，並忠於我們的品牌和社區價值觀，始終純素、清潔和無殘忍。我們的產品在外觀和感覺上都與其他產品不同，並且在有時千篇一律的類別中具有很​​高的辨識度。多年來，我們在黃金、套裝和棍棒中建立了強大的邪教偶像和屢獲殊榮的特許經營權，我們將繼續為這些據點提供動力。

And when we're talking about award-winning, our community was set alight with the 11 Olympic medal winner and the greatest gymnast of all time, Simone Biles, using our best-selling Hydro Grip Primer as a first step on her get-ready-with-me routine ahead of her impressive performance at the Paris Olympics last month. The greatest of all-time gymnasts wearing the greatest of all-time primer. In addition to our stronghold in our core categories, no pun intended, we're also delighting our community by expanding into new high replenishment segments such as eye with a launch of Kush eye roller mascara and brow tints, as well as in lip, with the latest shade extension of our Odyssey lip gloss franchise. Moreover, we're still at the very beginning of our viral, many-times-sold-out, once-sold-every-30-second, multi-award-winning Cooling Water Jelly Tint, driving a record buzz, record community building, and record sales. More exciting things to come in this franchise in the second half.

當我們談論獲獎時，我們的社區因11 枚奧運獎牌得主、有史以來最偉大的體操運動員西蒙·拜爾斯(Simone Biles) 而興奮不已，她使用我們最暢銷的Hydro Grip Primer 作為她做好準備的第一步-在上個月她在巴黎奧運會上取得令人印象深刻的表現之前，和我一起做例行公事。史上最偉大的體操選手穿著史上最偉大的底漆。除了我們在核心品類中的立足點之外，我們還透過擴展到新的高補給細分市場來取悅我們的社區，例如眼部產品，推出了Kush 眼部睫毛膏和染眉膏，以及唇部產品，我們奧德賽唇彩系列的最新色調擴展。此外，我們還處於病毒式傳播、多次售罄、每 30 秒售出一次、屢獲殊榮的清涼水果凍唇彩的起步階段，推動了創紀錄的熱潮，創紀錄的社區建設，並創下銷售記錄。下半場這個系列將會有更多令人興奮的事情發生。

Now, this franchise has been showered in editorial awards, which strongly contributed to 22 awards that the brand has won year-to-date, and we're still counting. It was also particularly exciting to all of us at Waldencast to have Milk Makeup named by WWD as one of the most powerful beauty brands fueling the industry's growth. Our most recent market expansions continue to confirm the global appeal and desirability of our Milk Makeup brand. The quality of our products and our brand values resonate universally. Our launches in the UK, Scandinavia, and Latin America are performing ahead of our expectations, as evidenced by the compelling stats you see on the screen.

現在，該系列已斬獲大量編輯獎項，為該品牌今年迄今贏得的 22 個獎項做出了巨大貢獻，而且我們仍在統計中。對於 Waldencast 的所有人來說，Milk Makeup 被 WWD 評為推動產業發展最強大的美容品牌之一也特別令人興奮。我們最近的市場擴張繼續證實了我們的牛奶化妝品品牌的全球吸引力和需求。我們的產品品質和品牌價值引起了普遍的共鳴。我們在英國、斯堪的納維亞半島和拉丁美洲推出的產品的表現超出了我們的預期，您在螢幕上看到的令人信服的統計數據就證明了這一點。

Now, from the world of Milk Makeup, let's go to the world of high-performance skincare with Obagi Medical. Obagi Medical delivered another outstanding quarter of growth with revenue of $34.6 million, representing comparable growth of 30.9% from the prior year. This strong growth was driven by the progress made on our strategic priorities that focus on increasing digital channel sales, building our international business, and accelerating our innovation with the introduction of highly effective blockbuster products. Similar to Milk Makeup, some of this growth was dampened by out-of-stocks on key products as the strong demand outstripped supply, which particularly impacted our US physician dispensed channel.

現在，讓我們從牛奶彩妝的世界，走進歐邦琪醫療的高性能護膚世界。歐邦琪醫療 (Obagi Medical) 再次實現了出色的季度增長，營收達到 3,460 萬美元，較上年同期增長 30.9%。這種強勁的成長是由我們的策略重點取得的進展所推動的，這些策略重點在於增加數位通路銷售、建立我們的國際業務以及透過推出高效的重磅產品來加速我們的創新。與牛奶化妝品類似，由於強勁的需求超過供應，主要產品缺貨，部分成長受到抑制，這尤其影響了我們的美國醫生配藥管道。

Inventory levels on key out-of-stock items have now substantially improved and we expect acceleration in Q3. Adjusted gross profit totaled $27.4 million, with adjusted gross margin expanding 850 basis points to 79.3% from 70.8% in the second quarter of fiscal 2023. And strong sales growth combined with significant expansion in adjusted gross margin more than offset the increased investment in business drivers, leading to adjusted EBITDA of $6.5 million, a 55.4% increase versus Q2 2023. Adjusted EBITDA margin expanded 230 basis points to 18.6% from 16.3% in the second quarter of Q2 2023.

主要缺貨商品的庫存水準現已大幅改善，我們預計第三季將加速。調整後毛利總計 2,740 萬美元，調整後毛利率從 2023 財年第二季的 70.8% 擴大 850 個基點至 79.3%。強勁的銷售成長加上調整後毛利率的大幅成長，遠遠抵消了對業務驅動因素的投資增加，調整後 EBITDA 達到 650 萬美元，比 2023 年第二季成長 55.4%。調整後 EBITDA 利潤率從 2023 年第二季的 16.3% 擴大 230 個基點至 18.6%。

Now looking at the first half, Obagi Medical delivered net revenue of $68.4 million, representing comparable growth of 25.4% from the first half of 2023. Adjusted gross profit rose to $54.9 million or 80.3% of net revenue versus $38.5 million or 67.4% of net revenue in the first half of 2023. This growth led to adjusted EBITDA of $13.2 million, a 37.1% increase from the first half of fiscal 2023, with adjusted EBITDA margin expanding to 19.3% from 16.9% in the fiscal 2023 first half. Across geographies, Obagi Medical saw balanced growth with a 37.6% increase in North America and a 35.2% increase internationally in the first half of 2024 compared to the prior year's first half. In the US, we saw outsized growth from our digital channels and a strong performance from our innovation. Internationally, we're very pleased to continue to re-establish Obagi Medical's presence in Southeast Asia and expect to build on this momentum this year.

現在來看上半年，Obagi Medical 的淨收入為 6,840 萬美元，較 2023 年上半年可比成長 25.4%。調整後毛利增至 5,490 萬美元，佔淨收入的 80.3%，而 2023 年上半年為 3,850 萬美元，佔淨收入的 67.4%。這一成長導致調整後 EBITDA 達到 1,320 萬美元，較 2023 財年上半年成長 37.1%，調整後 EBITDA 利潤率從 2023 財年上半年的 16.9% 擴大至 19.3%。在各個地區，歐邦琪醫療實現了均衡成長，與去年上半年相比，2024 年上半年北美地區成長了 37.6%，國際成長了 35.2%。在美國，我們看到數位管道的大幅成長和創新的強勁表現。在國際上，我們非常高興能夠繼續重建 Obagi Medical 在東南亞的業務，並預計今年將繼續保持這一勢頭。

Our vision for Obagi Medical is to be the number one physician-dispensed dermatological brand in the world, providing targeted solutions to professionals and consumers that deliver transformative, visible results. We're proud to be a leading US physician-recommended brand for the top three skin concerns for physicians and patients: hyperpigmentation; fine lines and wrinkles; and sagging skin and loss of elasticity. These conditions account for roughly two-thirds of the physician-dispensed category. Our growth strategy follows three pillars: first, strengthen our professional dermatological skincare brand's DNA; second, accelerate cutting-edge, science-back innovation that delivers transformative results; and third, grow brand awareness and footprint to reach more consumers domestically and internationally.

我們對 Obagi Medical 的願景是成為世界第一的醫生配藥皮膚科品牌，為專業人士和消費者提供有針對性的解決方案，帶來變革性的、可見的結果。我們很自豪能夠成為美國醫生推薦的領導品牌，解決醫生和患者面臨的三大皮膚問題：色素沉著過度；細紋和皺紋；以及皮膚下垂和失去彈性。這些病症約佔醫師開藥類別的三分之二。我們的成長策略遵循三大支柱：第一，強化我們專業皮膚科護膚品牌的DNA；其次，加速尖端、科學支援的創新，帶來變革性成果；第三，提高品牌知名度和影響力，以吸引更多的國內外消費者。

Now, when we acquired the brand, one of our clearly stated growth opportunities was to modernize the brand and usher it into a new area of dermatological skincare that will delight both our physicians and our consumers. I am pleased with the progress we have made and excited to share with you a small slide of what we are rolling onto the market. Our Obagi Medical brand positioning is anchored in four core pillars that are also the four cornerstones of our iconic Obagi Medical square. First, science is the answer. At Obagi Medical, science has always been the foundation of our brand. Our science and clinical results have been trusted by physicians for more than 35 years. But science is never settled, and neither are we, always pushing to innovate, test, and research beyond our best to discover better ways to transform our skin. Second, higher standards are our standards. We know our products are transformative because we hold ourselves to a higher standard where clinically proven is just a starting point. We go beyond clinical with our rigorous testing and data-backed results to prove the transformative power of each and every one of our products.

現在，當我們收購該品牌時，我們明確表示的成長機會之一是將品牌現代化，並將其引入皮膚科護膚的新領域，這將使我們的醫生和消費者都滿意。我對我們所取得的進展感到高興，並很高興與您分享我們正在推向市場的產品的一小部分幻燈片。我們的 Obagi Medical 品牌定位植根於四個核心支柱，這也是我們標誌性的 Obagi Medical 廣場的四個基石。首先，科學就是答案。在歐邦琪醫療，科學始終是我們品牌的基礎。35 年來，我們的科學和臨床結果一直受到醫生的信賴。但科學從來沒有解決過，我們也沒有解決，我們總是不斷地超越我們的極限去創新、測試和研究，以發現更好的方法來改變我們的皮膚。第二，更高的標準是我們的標準。我們知道我們的產品具有變革性，因為我們堅持更高的標準，臨床證明只是一個起點。我們超越臨床，透過嚴格的測試和數據支持的結果來證明我們每一款產品的變革力量。

Three, we're diverse by design, an important word we value. We pioneered clinical testing against the entire Fitzpatrick skin spectrum and continue to develop products systematically tested on every skin tone and type. And fourth, trust is always on trend. Simply put, our products just work. And that's why generations of consumers and physicians around the world have trusted us with their skin and their reputation for 35 years. That is how we deliver clinically proven, science-backed, visible transformative results on all skin tones, thanks to our cutting-edge science and medical-grade ingredients developed in partnership with 39 research and development partners and leveraging Waldencast's open development ecosystem, with a leading clinical testing program having conducted 329 studies, 100 product tested and up to 10 different tests performed per innovation.

第三，我們的設計是多元化的，這是我們重視的一個重要字眼。我們率先針對整個菲茨帕特里克皮膚譜進行臨床測試，並繼續開發針對每種膚色和類型進行系統測試的產品。第四，信任始終是趨勢。簡而言之，我們的產品就是有效的。這就是為什麼 35 年來，世界各地的幾代消費者和醫生一直信賴我們的皮膚和聲譽。這就是我們如何為所有膚色提供經過臨床驗證、有科學支持、可見的變革性結果，這要歸功於我們與39 個研發合作夥伴合作開發的尖端科學和醫療級成分，並利用Waldencast 的開放式開發生態系統，領先的臨床測試項目已進行 329 項研究，測試了 100 種產品，並且每項創新進行了多達 10 次不同的測試。

Many of you have spoken to us over the years about the various elements of the brand mix, that we're in need of a refresh. And we're happy to present to you beyond a refresh, a leapfrog that we believe strengthens Obagi Medical's leadership position. The strength of our Obagi Medical position brought to life with our iconic logo and square adapted to all touch points to communicate science, performance, and how we stand as uniquely Obagi, be it in our typography, photography or product and packaging. Bringing our new brand universe in an immersive way in and out of a physician's office for an elevated experience that reflects the authority and performance we're known for. An identity anchored in our medical blue as we increase more consumer and media touch points in and out of the physician's office to make uniquely memorable, relevant, and compelling. A new elevated style that spotlights the heart of our brand, science and performance, while educating our community on the potency and superiority of our range and make it more accessible to professionals and consumers alike.

多年來，你們中的許多人都與我們談論過品牌組合的各種元素，我們需要更新。我們很高興向您展示超越更新、跨越式的成果，我們相信這將鞏固 Obagi Medical 的領導地位。我們的標誌性標誌和方塊適應所有接觸點，以傳達科學、性能以及我們作為 Obagi 的獨特地位，無論是在排版、攝影還是產品和包裝方面，都充分體現了 Obagi Medical 的優勢地位。以身臨其境的方式將我們的新品牌世界帶入和走出醫生的辦公室，以獲得提升的體驗，體現我們聞名的權威和表現。隨著我們在醫生辦公室內外增加更多的消費者和媒體接觸點，這種身分植根於我們的醫療藍色，以使其具有獨特的難忘性、相關性和吸引力。一種新的提升風格，突顯了我們品牌的核心、科學和性能，同時讓我們的社群了解我們產品系列的效力和優越性，並使其更容易被專業人士和消費者所接受。

One of the first innovations that is fully benefiting from the new brand positioning and imaging is our new launches in our strategic ELASTIderm franchise. Launching one of our greatest innovations so far, bringing medical grade lifting to new heights. We will be extending our best-selling ELASTIderm franchise with the launch of ELASTIderm Lift Up and Sculpt Facial Moisturizer, clinically proven to visibly lift and sculpt facial contours in only six weeks. And its partner, ELASTIderm Advanced Filler Concentrate, clinically proven to visibly reduce the appearance of fine lines with a single application. Two blockbuster innovations playing in one of the top skincare segments of the physician channel, delivering visible, clinically proven results.

充分受益於新品牌定位和形象的首批創新之一是我們在策略性 ELASIderm 特許經營中推出的新產品。推出迄今為止我們最偉大的創新之一，將醫療級提升提升到新的高度。我們將透過推出 ELASTIderm Lift Up 和 Sculpt Facial Moisturizer 來擴展我們最暢銷的 ELASTIderm 特許經營權，經臨床證明，只需六週即可明顯提升和塑造面部輪廓。其合作夥伴 ElastIderm 高級填充濃縮液經臨床證明，只需一次塗抹即可明顯減少細紋的出現。兩項重磅創新在醫生管道的頂級護膚領域之一發揮作用，帶來了可見的、經過臨床驗證的結果。

The new ELASTIderm Lift Up and Sculpt Moisturizer expands our portfolio in the heartland of anti-aging and day cream category, a format where we're currently under-indexed, comes supercharged with a clinical dossier showing product efficacy in as little as three weeks of use and visible transformations used before and after. The perfect launch pad to communicate our medical authority in and out of that practitioner's office. New ELASTIderm Advanced Filler Concentrate is a non-injectable, instant fine line filler with impressive clinical results after a single application, and further improvement after eight weeks, showing a 19% reduction in the appearance of fine lines and forehead lines.

全新的 ELASTIderm Lift Up 和 Sculpt Moisturizer 擴大了我們在抗衰老和日霜類別中心地帶的產品組合，這是我們目前索引不足的一種形式，其臨床檔案顯示了產品在短短三週內的功效。使用之前和之後使用的可見轉換。這是在執業醫師辦公室內外傳達我們的醫療權威的完美發射台。新型ELASTIderm 高級填充劑濃縮液是一種非注射式即時細紋填充劑，單次使用後即可產生令人印象深刻的臨床效果，並在八週後進一步改善，細紋和前額紋減少19% 。

And lastly, we'll continue the momentum by raising brand awareness with Obagi Medical. We are excited because we're just at the beginning. Obagi Medical is today the number three fastest growing earned media value beauty brand. We expect further acceleration as we invest in growth drivers and deploy the new branding, packaging and, of course, medical-grade innovation.

最後，我們將透過提高 Obagi Medical 的品牌知名度來繼續這一勢頭。我們很興奮，因為我們才剛開始。歐邦琪醫療 (Obagi Medical) 是當今成長最快的贏得媒體價值第三大美容品牌。隨著我們投資於成長動力並部署新的品牌、包裝，當然還有醫療級創新，我們預計會進一步加速。

As you can see, we are more excited than ever about our business and our growth prospects. We have two powerful, high-growth, compelling brands perfectly positioned in the most attractive segments of the beauty business. We're now focused on stepping up our investment in our brands and the development of our communities. This combination of a strong community engagement and seductive, high-performance products is driving increased global demand for our brands, which coupled with the power of our Waldencast platform, and talented teams are well-positioned to drive long-term profitable growth. I'm always thankful for the continuous support of our consumers, investors, partners and employees and everyone who shares our dream of building a global best-in-class beauty and wellness operating platform. Overall, we continue to expect our efforts to lead to long-term value creation for all Waldencast's stakeholders.

正如您所看到的，我們對我們的業務和成長前景比以往任何時候都更加興奮。我們擁有兩個強大、高成長、引人注目的品牌，完美定位於美容產業最具吸引力的領域。我們現在專注於增加對品牌的投資和社群的發展。強大的社群參與度和誘人的高性能產品的結合正在推動全球對我們品牌的需求不斷增長，再加上我們 Waldencast 平台的力量和才華橫溢的團隊，我們處於有利地位，可以推動長期盈利增長。我始終感謝我們的消費者、投資者、合作夥伴和員工以及所有與我們擁有共同夢想的人的持續支持，即打造全球一流的美容和健康營運平台。總體而言，我們繼續期望我們的努力能為所有 Waldencast 的利害關係人創造長期價值。

And with that, I will turn the call over to the operator to begin the Q&A portion of the call.

然後，我會將通話轉交給接線員以開始呼叫的問答部分。

(Operator Instructions) Ashley Hogan, Jefferies.

（操作員說明）Ashley Hogan，Jefferies。

Hi. This is Sydney on for Ashley. I was just wondering if you can talk a little bit about the promotional environment and kind of what you've seen and are expecting going forward. And then also just any color you can share on the innovation pipeline in 2H? Thanks.

你好。這是阿什利的雪梨。我只是想知道您是否可以談論促銷環境以及您所看到的和對未來的期望。您還可以在 2H 的創新管道中分享任何顏色嗎？謝謝。

Hi Sydney. Thank you for the call. I'll break the question in two parts. Our brands are relatively unexposed to promotional fluctuations. In the case of physician dispensed, Obagi Medical, we run and the market runs relatively standardized promotions. It's relatively price inflexible. And in the case of Milk, the segment of the market has been relatively flat in terms of promotion. We don't see any significant or substantial amounts of increase in promotion or net price erosion as a consequence of that.

嗨悉尼。謝謝您的來電。我將把這個問題分成兩部分。我們的品牌相對不受促銷波動的影響。就醫生配藥而言，歐邦琪醫療，我們和市場都運行相對標準化的促銷活動。它的價格相對不靈活。就牛奶而言，該細分市場在促銷方面相對平淡。我們認為促銷活動不會出現任何顯著或實質的增加，也不會因此而導致淨價下降。

From an innovation standpoint, which is what is driving our brands, we are -- as you saw, we have an incredible half one of innovation on both brands. And frankly, we are super excited what is coming in half two. So we continue to accelerate the innovation on both brands, is a key part of our strategy. And I think innovation so far has been delivering very, very well.

從創新的角度來看，這是推動我們品牌發展的動力，正如您所看到的，我們在兩個品牌上都有令人難以置信的一半創新。坦白說，我們對第二半後發生的事情感到非常興奮。因此，我們持續加速兩個品牌的創新，是我們策略的關鍵部分。我認為到目前為止，創新的進展非常非常好。

Olivia Tong, Raymond James.

唐奧立，雷蒙德詹姆斯。

I thought it might be helpful to understand what you see as sort of a steady state revenue growth? And also, how you think about the EBITDA margin expansion opportunity, recognizing, of course, the expectations for an improved second half on both those line items --

我認為這可能有助於了解您所認為的穩定的國家收入成長？此外，您如何看待 EBITDA 利潤率擴張機會，當然，您也認識到下半年這兩個項目都有改善的預期--

Sorry, Olivia -- Olivia, sorry, you're breaking up. Could you please repeat your question?

對不起，奧莉維亞——奧莉維亞，對不起，你們要分手了。您能重複一下您的問題嗎？

Oh, sorry. Sure. I'll be a little louder too. I was hoping you could talk a little bit about what you think of as a steady state revenue growth? And how you think about the EBITDA margin expansion opportunity from here, recognizing, of course, that you talked about second half doing better than Q2 or second half doing better than first half when it comes to EBITDA? Particularly given the volatility in the past, it would be helpful to do that. So that's the first question.

哦，抱歉。當然。我也會大聲一點。我希望您能談談您對穩定的國家收入成長的看法？您如何看待 EBITDA 利潤率擴張機會？特別是考慮到過去的波動性，這樣做會很有幫助。這是第一個問題。

The second question is around just the competition in your categories. We've obviously seen some deceleration in the category after a very strong period of growth. So if you could just talk about the competitive environment both in -- for Milk and also for Obagi in the derm skincare area? And then lastly, just what you had referred to, to be out of stocks that you've been dealing with? Thank you.

第二個問題是關於您所在類別的競爭。在經歷了一段非常強勁的增長期之後，我們顯然看到該類別出現了一些減速。那麼，您能否談談 Milk 和 Obagi 在皮膚護理領域的競爭環境？最後，正如您所提到的，您一直在處理的庫存缺貨？謝謝。

Yeah. Thanks, Olivia. So on the first part of your question, kind of steady state revenue growth, as you can -- we provided guidance for the year. We have not provided guidance beyond that. But I think what we are seeing is an acceleration, as we communicated, an acceleration on the back half from the Q2 number. I think we expect an algorithm of a company that is high growth and certainly well ahead of market growth. And EBITDA, as you saw, we continue to build EBITDA toward our destination of structural economics.

是的。謝謝，奧莉維亞。因此，關於你問題的第一部分，盡可能穩定的國家收入成長——我們提供了今年的指導。除此之外我們沒有提供指導。但我認為我們看到的是加速，正如我們所傳達的，第二季數據後半部分的加速。我認為我們期望公司的演算法能夠高速成長，並且肯定遠遠領先於市場成長。而 EBITDA，正如您所看到的，我們繼續朝著結構經濟學的目標建立 EBITDA。

So we expect -- and I've communicated this in the past, we expect on a long-term basis, on a steady state basis. We already have a structural economics in the company that are comparable and, in many cases, superior to best-in-class beauty from a gross margin perspective, which is only going to help us build our EBITDA as we continue to grow our brands. Ours, very simply, is a growth story. We continue to grow the brands, as you can see, at a very accelerated pace, which -- what is already the engine of the company, which is the gross margin level that is very, very attractive. So as we grow the company, we will continue to execute what is our virtuous cycle, which is revenue growth translated to very strong gross margin growth reinvested into business drivers of marketing and sales that further drive growth and dilute G&A to deliver increases in EBITDA.

所以我們期望——我過去已經傳達過這一點，我們期望在長期、穩定的基礎上。我們公司已經擁有了與一流美容公司相當的結構經濟學，從毛利率的角度來看，在許多情況下，這只會幫助我們在繼續發展品牌的同時建立我們的 EBITDA。很簡單，我們的故事就是一個成長故事。正如你所看到的，我們繼續以非常快的速度發展品牌，這已經是公司的引擎，毛利率水平非常非常有吸引力。因此，隨著公司的發展，我們將繼續執行我們的良性循環，即收入成長轉化為非常強勁的毛利率成長，再投資於行銷和銷售的業務驅動因素，進一步推動成長並稀釋一般管理費用，從而實現EBITDA 的成長。

In terms of competition, the category -- I mean, beauty has always been a very competitive market. It is a market of competition. But frankly, as I've said before, we do not think too much about competition. We're such a small company in the whole scheme of things in the beauty market that our limitation to grow is only our own ability to create great consumer propositions that are interesting and compelling to consumers combined with our own ability to execute.

就競爭而言，我的意思是，美容品類一直是個競爭非常激烈的市場。這是一個競爭的市場。但坦白說，正如我之前所說，我們並沒有過多考慮競爭問題。在美容市場的整個計劃中，我們是一家小公司，我們發展的限制只是我們自己創造對消費者感興趣和有吸引力的偉大消費者主張的能力，再加上我們自己的執行能力。

So the beauty market has always been competitive. It is a competitive market. But there is -- it's not a winner takes all market. It's an expandable consumption category. And while competition is a point of information, frankly, we don't think too much of competition. We think more of how do we create great breakthrough propositions, like, for example, what we've done in Milk Makeup jellies, which is we invented a completely new product that is incredibly seductive and interesting for consumers that really has no competition. And as a consequence, we benefited from a tremendous impact on our top line growth, our sales and our social and community metrics.

所以美容市場一直競爭激烈。這是一個競爭激烈的市場。但市場並不是贏者全拿。這是一個可擴展的消費類別。雖然競爭是一個資訊點，但坦白說，我們並沒有過多考慮競爭。我們更考慮如何創造巨大的突破性主張，例如我們在牛奶化妝果凍中所做的事情，即我們發明了一種全新的產品，對消費者來說非常誘人且有趣，而且確實沒有競爭。因此，我們從收入成長、銷售以及社交和社區指標的巨大影響中受益。

And lastly, in out-of-stocks, out-of-stocks was a bit of a headwind in Q2. Frankly, in some ways we were victims of our own success. Things, particularly like Makeup, or things like jellies are particularly difficult to forecast when you are creating a new-to-the-world proposition. And we could have grown substantially more on the basis of that, of those out of stocks. Same thing at Obagi. Our innovation performed better than we expected. But in fairness, we also were managing our base inventory a bit tighter than perhaps we should have with hindsight 2020.

最後，在缺貨方面，缺貨是第二季的一個阻力。坦白說，在某些方面，我們是自己成功的受害者。當你創造一個新的主張時，一些事情，特別是像化妝品，或是果凍這樣的事情，是特別難以預測的。在此基礎上，我們可以在缺貨的情況下實現更大的成長。奧邦吉也有同樣的情況。我們的創新表現比我們預期的還要好。但公平地說，我們對基礎庫存的管理也比事後 2020 年應有的管理要緊一點。

In terms of on a go-forward basis, I think most of the out-of-stock issues are behind. We are fully stocked on jellies. And if you were to go today to a Sephora or to one of our outlets, you don't have to fight for one of the jellies that you had to fight a little bit before. You will see inventory and consumers buying this inventory at a rapid pace. But we still have a little bit of an effect -- we still have a little bit of an effect on out-of-stocks, particularly in the Obagi business in Q3, but substantially less than what we saw in Q2. Thanks for the question, Olivia.

就未來而言，我認為大多數缺貨問題都已經過去了。我們的果凍庫存充足。如果您今天要去絲芙蘭或我們的專賣店，您不必像以前一樣為某種果凍而奮鬥。您將看到庫存和消費者快速購買這些庫存。但我們仍然有一點影響——我們對缺貨仍然有一點影響，特別是在第三季的 Obagi 業務中，但遠遠小於我們在第二季度看到的情況。謝謝你的提問，奧莉維亞。

(Operator Instructions) Linda Bolton Weiser, D.A. Davidson.

（操作員說明）Linda Bolton Weiser，D.A.戴維森。

Yes, hi. Congratulations on the great growth. So I was curious -- I didn't catch if you were kind of talking about the advertising and promo ratios in each of the brands. Maybe you don't want to disclose those. But maybe you can give us a sense for if you feel the spending levels as a ratio are kind of where you want it to be for each of the two brands? Or do you envision even further increase in A&P kind of in the future years?

是的，嗨。恭喜你巨大的成長。所以我很好奇——我不明白你是否在談論每個品牌的廣告和促銷比例。也許你不想透露這些。但也許您可以告訴我們，您是否認為這兩個品牌的支出水準比例符合您希望的水平？或者您預計未來幾年 A&P 會進一步增加嗎？

Thank you. Linda. Thank you for the question. So we think that -- so we -- since we started this journey two years ago, Linda, we've accelerated quite substantially the level of marketing investment as we build our brands. We certainly expect half two to continue to invest even further than we invested in half one, which was already a substantial increase versus next year -- last year. But what we follow is a very strong ROI mindset behind that marketing expense.

謝謝。琳達。謝謝你的提問。所以我們認為——所以我們——自從兩年前開始這趟旅程以來，琳達，我們在建立品牌的過程中大大加快了行銷投資的水平。我們當然預計第二半的投資將繼續超過我們第一半的投資，這與明年（去年）相比已經有了大幅增長。但我們遵循的是行銷費用背後非常強烈的投資報酬率心態。

In terms of on a long-term basis, are we at the level of marketing investment long term? No, we believe that -- I think there is still substantial room to grow and support both in terms of a percent of sales as well as absolute value as we continue to build a business. But that is part of our kind of virtuous circle. And what we do is we invest, we drive operational efficiency, which we invest in business drivers to drive the top line growth and dilute our G&A. So in both cases, in both brands, we expect to continue to increase our marketing support and sales support on both brands, that with -- resulting, as I said, in increases in our EBITDA contribution.

從長遠來看，我們的行銷投資是否處於長期水準？不，我們相信——我認為在我們繼續發展業務的過程中，無論是在銷售額百分比還是絕對價值方面，仍然有很大的成長和支持空間。但這是我們良性循環的一部分。我們所做的就是投資，提高營運效率，投資於業務驅動因素，以推動營收成長並稀釋我們的一般管理費用。因此，在這兩種情況下，在這兩個品牌中，我們預計將繼續增加對這兩個品牌的行銷支援和銷售支持，正如我所說，這將導致我們的 EBITDA 貢獻增加。

Okay. And just one follow up. In terms of Obagi, maybe you could remind us just -- is Obagi using distributors pretty much in all of its international markets or just some of them? And can you just explain to us, like, do we need to worry about, like, too much inventory in the distributor channel? Or how should we think about just how you execute there internationally on Obagi? Thanks.

好的。只需一個跟進。就 Obagi 而言，也許您可以提醒我們——Obagi 是在其所有國際市場上幾乎都使用分銷商還是僅在其中一些市場上使用分銷商？您能否向我們解釋一下，例如，我們是否需要擔心經銷商通路中的庫存過多？或者我們應該如何思考您如何在 Obagi 上進行國際化執行？謝謝。

Thanks. So our international structure today is relatively simple. We internalize the distribution of Obagi in Southeast Asia. So in Southeast Asia what we use is our own subsidiary now, moving from an old distributor model that we have in Southeast Asia. For all the challenges and trials and tribulations we had with that distributor in 2022, that is now fully behind us. And now we have our own subsidiary in Southeast Asia.

謝謝。所以我們今天的國際結構相對簡單。我們將歐邦琪在東南亞的經銷內部化。因此，在東南亞，我們現在使用的是我們自己的子公司，從我們在東南亞的舊經銷商模式轉變。儘管我們在 2022 年與該經銷商一起經歷了所有挑戰、考驗和磨難，但現在我們已經完全過去了。現在我們在東南亞擁有自己的子公司。

And in every other international market, we use distributors. And what we do is we have a very strict monitoring in those distributors from our sell-in, sell-through, and sell-out basis. For most distributors -- we don't have sell-out for all distributors. But in terms of all the major distributors, we have a very strong monitoring sell-in, sell-through, and sell-out in places where we can have sellout. So we do not have any concerns about too much inventory on distributors at international level.

在所有其他國際市場中，我們都使用分銷商。我們所做的就是從銷售、銷售和售出的基礎上對這些經銷商進行非常嚴格的監控。對於大多數經銷商來說，我們並沒有為所有經銷商提供售空服務。但就所有主要經銷商而言，我們在可以售出的地方有非常強大的銷售、銷售和售出監控。因此，我們不擔心國際經銷商的庫存過多。

The international footprint, just to finalize, is we're on a journey on that, on the other distributors, the outside of Southeast Asia distributors. And just frankly, we have some excellent distributor partners. And there are some distributors where we need to execute a bit of a change on go-to-market structure, which we'll be doing over the next couple of years or so as we transition that into a more efficient distributor model. But overall, we have no concerns about inventory build whatsoever on international distribution.

最後確定的是，國際足跡是我們正在踏上的旅程，在其他經銷商、東南亞分銷商之外。坦白說，我們有一些優秀的經銷商合作夥伴。對於一些經銷商，我們需要對進入市場的結構進行一些改變，我們將在未來幾年左右將其轉變為更有效率的經銷商模式。但總體而言，我們並不擔心國際分銷上的庫存增加。

Okay. Thanks a lot.

好的。多謝。

Thank you, Linda.

謝謝你，琳達。

Dana Telsey, Telsey Advisory Group. Dana, could you check if you're self-muted, please?

達納‧特爾西，特爾西諮詢小組。Dana，你能檢查一下你是否已自我靜音嗎？

Yes, hi. Good morning, everyone. As you think about the drivers of the strong gross margin expansion that you had and the international expansion that Milk and Obagi are seeing, what's driving that? How do you think about the growth going forward and what it could mean for the business? Thank you.

是的，嗨。大家早安。當您思考毛利率強勁成長以及 Milk 和 Obagi 的國際擴張的驅動因素時，是什麼推動了這一成長？您如何看待未來的成長以及這對業務意味著什麼？謝謝。

Thank you, Dana. On gross margin, the story remains the same, and it's a little bit different by brand, but the story remains the same. In the case of Obagi, it is fundamentally driven by two things. One is a very strong and favorable channel mix as we develop our digital channels on Obagi. And the second one is operational efficiency that we continue to build on those businesses.

謝謝你，達納。在毛利率方面，故事保持不變，品牌略有不同，但故事保持不變。就 Obagi 而言，它從根本上是由兩件事驅動的。一是我們在 Obagi 上開發數位管道時擁有非常強大且有利的管道組合。第二個是我們繼續在這些業務的基礎上提高營運效率。

As you know, we are already at a very high gross margin level. I'm saying we are about at the destination level of Obagi in terms of gross margin. I think any future efficiency, whether it's still to have as part of that operational efficiency, we plan to reinvest it into product and formulation and acquire quality offering to our customers. So we expect Obagi to be roughly at its destination. Milk, as you saw, was a business that was gross margin in the 40s when we bought it, and now it's approximating where we want it in terms of destination. It's been driven primarily through operational efficiency.

如您所知，我們已經處於非常高的毛利率水準。我是說，就毛利率而言，我們大約處於 Obagi 的目標水準。我認為任何未來的效率，無論是否仍然作為營運效率的一部分，我們計劃將其重新投資到產品和配方中，並為我們的客戶提供優質的產品。因此，我們預期 Obagi 將大致到達目的地。正如您所看到的，當我們購買牛奶時，該業務的毛利率為 40 多美元，而現在就目的地而言，它已經接近我們想要的水平。它主要是透過營運效率驅動的。

So we continue to build that operational efficiency, a bit of mix, all the kind of detail of how do you build a great operating margin. And thanks for highlighting the point of gross margin, because that, at the end of the day, is the engine of the company. And as we grow the business at that very attractive level of gross margin, it allows us a substantial amount of fuel to reinvest in building our brands and deliver profitability over time.

因此，我們繼續提高營運效率，進行一些混合，以及如何建立良好的營運利潤的所有細節。感謝您強調毛利率這一點，因為歸根結底，毛利率是公司的引擎。隨著我們以非常有吸引力的毛利率水平發展業務，我們可以將大量的燃料用於再投資於品牌建設並隨著時間的推移實現盈利。

In the case of international, a little bit different, again, by brand, because the models are different. We have some substantial growth coming on Milk, as you saw from the results as we -- most of it is really productivity driven, it's productivity out of our own businesses, but we have some modest distribution expansion. We entered the UK market not long ago, but it's still relatively modest in the number of stores where we are, and it's doing very well and exceeding our expectations of how it's performing in the UK.

就國際而言，品牌略有不同，因為型號不同。正如您從結果中看到的那樣，我們在牛奶方面取得了一些實質性增長，其中大部分實際上是生產力驅動的，這是我們自己業務的生產力，但我們有一些適度的分銷擴張。我們進入英國市場不久，但我們在英國的門市數量還比較少，而且做得很好，超出了我們對它在英國的預期。

We also expanded distribution, our footprint in Scandinavia with Leco, and it's been a fantastic success. We talk about the last quarter of lines and lines and lines of consumers waiting to buy Milk as we expanded. And also, a small but important expansion into Latin America, particularly in Chile, Colombia, and Mexico with Blush Bar. That has been a tremendous success and which, as we saw in the presentation and we saw before, we are the number one or two brand in the store for those markets, which is validating just the universal appeal of the Milk brand across the world. And there's much more to come in the future.

我們還透過 Leco 擴大了分銷範圍，擴大了我們在斯堪的納維亞半島的足跡，並且取得了巨大的成功。我們談論的是上個季度隨著我們的擴張，等待購買牛奶的消費者排隊。此外，Blush Bar 也向拉丁美洲進行了小規模但重要的擴張，特別是在智利、哥倫比亞和墨西哥。這是一個巨大的成功，正如我們在演示中和之前所看到的那樣，我們是這些市場商店中的第一或第二品牌，這證實了牛奶品牌在全球的普遍吸引力。未來還會有更多的事情發生。

In the case of Obagi, as I said, we have a bit of a bifurcated model. One is our -- if you're going to distribute our business outside of the US, which is everywhere outside the US with the exception of Southeast Asia, we continue to build from strength to strength. We invest in the brand, professionalize the way we're managing those distributors, realign some of those distributors. There's still a bit of work to do that we need to do over the next two or three years at strengthening that distribution network, look for internalization where appropriate, et cetera.

就 Obagi 而言，正如我所說，我們的模型有點分叉。一是我們的－如果您要將我們的業務分銷到美國以外的地區，那麼我們的業務遍布美國以外的任何地方（東南亞除外），我們將繼續不斷壯大。我們對品牌進行投資，使我們管理這些經銷商的方式專業化，並重新調整其中一些經銷商。在未來兩三年內，我們仍然需要做一些工作來加強分銷網絡，在適當的情況下尋求內部化等等。

And then we have Southeast Asia, where, as you know, we are rebuilding our business in Southeast Asia after the collapse, if you want, of our former distributor, and we're very pleased with that progress. We launched in -- initially in Vietnam in November of last year, and now we've expanded into Thailand, Singapore, and most recently India, and the business is performing very well. And we have now an internalized model that allows us to have a much better profitability on a going basis as we capture all the margin on that supply chain.

然後是東南亞，如您所知，如果您願意的話，我們的前經銷商倒閉後，我們正在東南亞重建我們的業務，我們對這一進展感到非常滿意。我們最初於去年 11 月在越南推出，現在擴展到泰國、新加坡，最近又擴展到印度，業務表現非常好。我們現在有了一個內部化的模型，當我們獲取供應鏈上的所有利潤時，它使我們能夠持續獲得更好的獲利能力。

Thank you. We have reached the end of our question-and-answer session. I would now like to hand the call back over to Michel Brousset for any closing comments.

謝謝。我們的問答環節已經結束。我現在想將電話轉回米歇爾·布魯塞 (Michel Brousset) 以徵求結束意見。

Thank you very much. Well, thank you, everybody, for joining us today. We're very excited about the Q2 results and the closing of half one. And as we communicated on the earnings release, we're very, very confident about our outlook for the year. And thank you very much for being here and for your support. Have a good day.

非常感謝。好的，謝謝大家今天加入我們。我們對第二季的結果和第一季的結束感到非常興奮。當我們就收益發布進行溝通時，我們對今年的前景非常非常有信心。非常感謝您的光臨與支持。祝你有美好的一天。

Thank you. This does conclude today's conference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

謝謝。今天的會議到此結束。我們感謝您的參與。此時您可以斷開線路。享受你一天剩下的時間。