09.12.23
The Beauty Health Company, home to flagship brand Hydrafacial, has launched a business transformation program to drive profitable growth by reducing operating costs and streamlining its operations.
Alongside this, its Board of Directors has authorized the company to repurchase up to $100 million of its common stock.
“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 Andrew Stanleick. “The actions announced today reflect our commitment to creating shareholder value.”
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 $20 million during Q1 2024, with Phase 2 expected to realize over $15 million annualized cost savings during Q2 2024.
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; and 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 foresee executing large-scale M&A transactions. The company will provide an update on the program during its third quarter earnings call in November 2023.