11.09.21
Synthetic biotech firm Amyris, Inc. has announced financial results for its third quarter ended September 30, 2021. The company, based in Emeryville, CA, provides ingredients for personal care formulation, and is also the engine behind a growing number of consumer brands that operate in clean beauty.
Record Q3 underlying revenue of $48 million increased 40% continuing the year-over-year and sequential growth trajectory. Record consumer revenue of $23 million increased 89% versus Q3 2020.
The total number of consumer brands in the Amyris stable has grown from one in 2018 (Biossance) to eight in Q3 2021. The company launched four brands in the third quarter alone.
Year-to-date Q3 2021 consumer revenue of $60 million grew from $6 million for the same period in 2018—10.7X or a 121% CAGR.
"Amyris delivered another strong quarter along with solid strategic execution amid challenging external global supply chain conditions," said John Melo, president and CEO. "Once again, we realized record underlying revenue and record consumer revenue demonstrating continued year-over-year and sequential growth. We launched four new consumer brands in the quarter further expanding our foothold in clean beauty and personal care end-markets. Rose Inc.T clean color cosmetics, JVN clean haircare and Terasana clean skincare are each formulated with one, or a combination, of our unique sustainable ingredients that we created and manufacture leveraging the power of our Lab-to-Market operating platform. Additionally, we launched Olika. We completed three acquisitions including Olika, Beauty Labs and MG Empower adding strategic digital, online influencer and social selling capabilities as approximately 50% of our consumer revenue is being generated from e-commerce which is our fastest growing and best gross margin business channel."
“We continued to progress the construction of our new Brazil ingredients plant with expected production in early 2022 as well as the establishing our consumer production facility in Reno, Nevada by the middle of next year,” he said.
Melo said worldwide supply chain disruptions combined with late quarter launches of the new brands resulted in lower-than-expected revenue.
“Shipping delays impacted supply of raw materials and customer shipments while freight expense significantly increased. Although global in nature and persisting in the fourth quarter, we believe these are short-term issues and that they have no impact on our long-term growth targets. We continue to experience very robust demand that more than supports our outlook. Looking ahead to 2022, we are taking control of our supply chain with the investments in Brazil and Reno to reduce our third-party dependency and our exposure to shipping delays resulting in lower operating costs and expanded gross margins,” he said.
Melo said that the company expects full year 2021 total revenue to be in the $330 - $370 million range, doubling its full year 2020 results.
“We have the inventory on hand to deliver within this range and subject to easing supply chain headwinds could attain upside,” Melo added.
Consumer Units Rising
During September, Rose Inc. and JVN hosted a number of launch events in the U.S. and internationally, including social media campaigns to accelerate brand awareness and educate consumers on the power of squalane, hemi-squalane and biosilica as differentiated core ingredients to these brands.
JVN was launched with nine SKUs in 62 Sephora stores with stores expected to triple over the next quarter. Rose Inc. was launched with 16 SKUs in Sephora North America and Space NK in the US Both brands are accelerating revenue into the fourth quarter and are expected to exceed $20 million revenue each in its first 12 months.
Biossance’s international expansion continued through Space NK in the UK. The brand can now be found in 14 different retailer chains worldwide.
Amyris’ baby care brand, Pipette, can now be found in 236 new stores across Canada; and it also launched in 118 new stores in the US during Q3.
And, expect more consumers brands to come. Amyris says it is finalizing negotiations for three additional brands over the next three months.
Ingredients Operations
On the ingredients side, through the end of Q3 sales volumes for squalene surpassed total 2020 sales volumes, according to Amyris. Demand for hemi-squalane for haircare is driven by increasing regulatory pressure to reduce the use of environmentally harmful silicones, said the company.
According to officials, during Q3. Amyris experienced supply chain challenges with significant port delays for critical raw materials due to labor shortages affecting the production of squalane and hemi-squalane. The delays resulted in a 20% shortfall in our squalane production target. Further, it said it incurred additional cost from increased shipping expense and expedited air shipping. The firm said it anticipates shipping and port unloading issues to continue in Q4.
Ingredients revenues for the third quarter were $13.3 million down 30% from 18.8 million in the prior year quarter. For the nine months ended Sept. 30, 2021, ingredients revenues are up 1%.
Melo also called attention to the company's JV partnership with ImmunityBio for the commercialization of a second generation COVID-19 vaccine which expands its business into biopharma.
Record Q3 underlying revenue of $48 million increased 40% continuing the year-over-year and sequential growth trajectory. Record consumer revenue of $23 million increased 89% versus Q3 2020.
The total number of consumer brands in the Amyris stable has grown from one in 2018 (Biossance) to eight in Q3 2021. The company launched four brands in the third quarter alone.
Year-to-date Q3 2021 consumer revenue of $60 million grew from $6 million for the same period in 2018—10.7X or a 121% CAGR.
"Amyris delivered another strong quarter along with solid strategic execution amid challenging external global supply chain conditions," said John Melo, president and CEO. "Once again, we realized record underlying revenue and record consumer revenue demonstrating continued year-over-year and sequential growth. We launched four new consumer brands in the quarter further expanding our foothold in clean beauty and personal care end-markets. Rose Inc.T clean color cosmetics, JVN clean haircare and Terasana clean skincare are each formulated with one, or a combination, of our unique sustainable ingredients that we created and manufacture leveraging the power of our Lab-to-Market operating platform. Additionally, we launched Olika. We completed three acquisitions including Olika, Beauty Labs and MG Empower adding strategic digital, online influencer and social selling capabilities as approximately 50% of our consumer revenue is being generated from e-commerce which is our fastest growing and best gross margin business channel."
“We continued to progress the construction of our new Brazil ingredients plant with expected production in early 2022 as well as the establishing our consumer production facility in Reno, Nevada by the middle of next year,” he said.
Melo said worldwide supply chain disruptions combined with late quarter launches of the new brands resulted in lower-than-expected revenue.
“Shipping delays impacted supply of raw materials and customer shipments while freight expense significantly increased. Although global in nature and persisting in the fourth quarter, we believe these are short-term issues and that they have no impact on our long-term growth targets. We continue to experience very robust demand that more than supports our outlook. Looking ahead to 2022, we are taking control of our supply chain with the investments in Brazil and Reno to reduce our third-party dependency and our exposure to shipping delays resulting in lower operating costs and expanded gross margins,” he said.
Melo said that the company expects full year 2021 total revenue to be in the $330 - $370 million range, doubling its full year 2020 results.
“We have the inventory on hand to deliver within this range and subject to easing supply chain headwinds could attain upside,” Melo added.
Consumer Units Rising
During September, Rose Inc. and JVN hosted a number of launch events in the U.S. and internationally, including social media campaigns to accelerate brand awareness and educate consumers on the power of squalane, hemi-squalane and biosilica as differentiated core ingredients to these brands.
JVN was launched with nine SKUs in 62 Sephora stores with stores expected to triple over the next quarter. Rose Inc. was launched with 16 SKUs in Sephora North America and Space NK in the US Both brands are accelerating revenue into the fourth quarter and are expected to exceed $20 million revenue each in its first 12 months.
Biossance’s international expansion continued through Space NK in the UK. The brand can now be found in 14 different retailer chains worldwide.
Amyris’ baby care brand, Pipette, can now be found in 236 new stores across Canada; and it also launched in 118 new stores in the US during Q3.
And, expect more consumers brands to come. Amyris says it is finalizing negotiations for three additional brands over the next three months.
Ingredients Operations
On the ingredients side, through the end of Q3 sales volumes for squalene surpassed total 2020 sales volumes, according to Amyris. Demand for hemi-squalane for haircare is driven by increasing regulatory pressure to reduce the use of environmentally harmful silicones, said the company.
According to officials, during Q3. Amyris experienced supply chain challenges with significant port delays for critical raw materials due to labor shortages affecting the production of squalane and hemi-squalane. The delays resulted in a 20% shortfall in our squalane production target. Further, it said it incurred additional cost from increased shipping expense and expedited air shipping. The firm said it anticipates shipping and port unloading issues to continue in Q4.
Ingredients revenues for the third quarter were $13.3 million down 30% from 18.8 million in the prior year quarter. For the nine months ended Sept. 30, 2021, ingredients revenues are up 1%.
Melo also called attention to the company's JV partnership with ImmunityBio for the commercialization of a second generation COVID-19 vaccine which expands its business into biopharma.