Core Revenue for Amyris, Inc. Grows 54% in Q2

Amyris, Inc., a leading synthetic biotechnology company accelerating the world's transition to sustainable consumption through its Lab-to-Market technology platform and clean beauty consumer brands, reported core revenue of $65.2 million for the second quarter ended June 30, a growth of 54% versus the prior-year quarter.

 

The growth year to date is 113%, compared to 16% for the US prestige beauty sector, John Melo, president and CEO said.

 

“All of our distribution channels are performing well. Our omnichannel strategy is delivering strong growth with our retail channel representing 55% of Q2 consumer revenue as consumers increasingly resume in store experiences and purchasing, and 45% attributable to direct-to-consumer ecommerce,” said Melo. “In the second quarter, our consumer products were on the shelves in 9,000 stores which compares to 1,500 in the year ago quarter. This number is rapidly expanding with thousands of Walmart stores being added.”

 

Melo cites the start-up of the company’s greenfield state-of-the-art bio-fermentation facility in Barra Bonita, Brazil as a major strategic milestone, in addition to its pair of completed acquisitions, one of which was a new manufacturing facility for cosmetics and personal care products in Brazil. 

The company, he added, is also transitioning to lower-cost fulfillment and away from China-sourced packaging materials to mitigate supply chain issues, reduce freight expense and improve overall resiliency of its supply chain. The company also deepened its relationship with the world's leading retailers and sold all of the ingredients it produced in the quarter, while making significant progress with the setup of infrastructure for its expansion into Europe.

 

“During the first half of this year, we have delivered on our plan to make significant investments in our infrastructure, along with increasing the scale of our consumer business. We are transitioning to harvesting these investments and expect to deliver $50 million in EBITDA improvements during the second half from a combination of price increases, SG&A reduction from leveraging marketing spends across the portfolio, reducing our manufacturing costs, and lower packaging and fulfillment costs across our consumer brands,” said Melo. “We are moving beyond the period of significant investment and the constraints on our ingredients production capacity. We are entering the second half with a consumer business that we expect to deliver accelerated growth year-over-year, and a $15 million ingredient backlog for shipping in the second half. We have a robust outlook for the remainder of the year and our guidance remains intact.”

 

The company has visibility to over $700 million of funding and cash inflow from earnouts with $200 million expected during the third quarter.

 

Consumer growth was driven by solid year-over-year growth of Biossance and strong contributions from new brands, led by JVN, Rose Inc. and MenoLabs. Direct-to-consumer sales, which comprised 45% of total consumer sales, grew approximately 98% year-over-year. In-store and online retail sales, which comprised 55% of total consumer sales, grew approximately 111% year over year. 

 

Revenue from Sephora grew approximately 25% year-over-year. During the second quarter, Amyris brands were available at approximately 9,000 physical locations compared to approximately 1,500 during Q2 2021.