The Beauty Health Company SKIN shares are trading higher today after it announced the launch of a business transformation program to drive profitable growth by cutting costs and streamlining its operations.
Phase 1 of the program is expected to realize annualized cost savings of over $20 million during Q1 2024.
The company will achieve this by streamlining its go-to-market footprint, creating unified centers of excellence, modernizing processes through technology and automation, and advancing initiatives to drive manufacturing efficiencies.
In Phase 2, the company expects over $15 million in annualized cost savings during Q2 2024 to be primarily driven by optimizing manufacturing operations.
Beauty Health said it is not expecting to execute large-scale M&A transactions during the transformation program.
Stock Buyback: Also, the Board of Directors has authorized the company to repurchase up to $100 million of its common stock.
Outlook: Beauty Health reaffirmed long-term 2025 financial guidance of $600 million - $700 million in net sales, a 500 basis points expansion in gross margin versus FY 2021, and 25% to 30% Adjusted EBITDA margin.
The company held $549.7 million in cash and equivalents as of June 30, 2023.
Price Action: SKIN shares are trading higher by 24.41% at $6.81 on the last check Tuesday.
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