BeautyHealth Announces Business Transformation Program to Drive Profitability and Growth; Board of Directors Authorizes $100 Million Share Repurchase
First phase of the transformation program expected to generate over
Company re-affirms long-term 2025 financial guidance of
“The transformation program is an important step towards delivering our long-term growth and profitability targets in 2025 and beyond,” said BeautyHealth President and Chief Executive Officer
Business Transformation Program
This fall, BeautyHealth will initiate a two-phase transformation program to reduce costs and streamline its operations to drive profitable growth.
Phase 1 of the program is expected to realize annualized cost savings of over
In Phase 1, the Company will reduce costs by:
- Streamlining BeautyHealth’s go-to-market footprint, creating unified centers of excellence to support our brand growth.
- Modernizing processes by leveraging technology and automations.
- Advancing initiatives to drive manufacturing efficiencies.
In Phase 2, the Company expects cost savings to be primarily driven by optimizing manufacturing operations.
While implementing the transformation program, BeautyHealth does not expect to execute large-scale M&A transactions. The Company will provide an update on the program during its third quarter earnings call in
Share Repurchase Authorization
The BeautyHealth Board of Directors has authorized the Company to repurchase up to
The extent to which the Company repurchases shares, and the timing of such repurchases, will depend upon a variety of factors as determined by the Company’s management. Purchases may be affected through one or more open market transactions, privately negotiated transactions, transactions structured through investment banking institutions, or a combination of the foregoing. The Company expects to fund its share repurchases with existing cash on hand and is not obligated under the program to acquire any particular amount of stock. The Company can suspend or terminate the program at any time.
Certain statements made in this release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, including statements regarding The Beauty Health Company’s strategy, plans, objectives, initiatives and financial outlook. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements.
These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside The Beauty Health Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. As such, readers are cautioned not to place undue reliance on any forward-looking statements.
Important factors that may affect actual results or outcomes include, among others: The Beauty Health Company’s ability to manage growth; The Beauty Health Company’s ability to execute its business plan; potential litigation involving The