ELF Beauty reports strongest year, driven by retail and e-commerce growth

(Source: Supplied)

ELF Beauty chairman and CEO Tarang Amin described fiscal 2024 as “the company’s strongest year” as the company released results for the three and 12 months ending in March, reflecting strong sales driven by retail and e-commerce channels. 

“We’ve delivered record-breaking, consistent, and category-leading growth,” said Amin.

During the fourth quarter, the company experienced a 71 per cent increase in net sales, reaching $321.1 million, driven by strong performance across its retail and e-commerce channels.

The company’s growth margin also significantly increased to 71 per cent, mainly due to favorable foreign exchange impacts, international price increases, lower costs from retail activities, cost savings, and improved transportation costs, partially offset by inventory adjustments.

The net quarterly income of $14.5 million and an adjusted EBITDA of $40.9 million – a 93 per cent increase year over year – came despite the company’s selling, general, and administrative expenses increasing from $89.1 million to $210.2 million. 

That increase was attributed mainly to higher marketing costs, compensation and benefits, operational costs, retail fixtures and visual merchandising costs, depreciation and amortisation, and professional fees.

For the full fiscal year 2024, ELF Beauty achieved a 77 per cent increase in net sales, reaching $1.024 billion, primarily driven by strong performance across retail and e-commerce channels.

The company also reported a net income of $127.7 million and an adjusted EBITDA of $234.7 million, representing a 101 per cent increase year over year.

ELF Beauty acquired Naturium, a fast-growing skincare brand, for $333 million in a combination of cash and company stock last October.

“As we look ahead, we believe we are still in the early stages of unlocking the full potential we see for ELF Beauty across cosmetics, skincare, and international markets,” Amin concluded.

ELF Beauty projects a further 20 to 22 per cent increase in net sales for fiscal 2025.

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