03.16.23
Amyris, Inc., the biotechnology company with its own slate of consumer beauty brands, released its financial results for the fourth quarter and full year ended December 31, 2022.
"We have focused our brand leadership teams and are making differentiated portfolio choices placing our investment on attractive beauty categories such as skin care, hair care, color cosmetics, baby care and healthy aging with our flagship brands Biossance, JVN, Rose Inc., Pipette, Stripes and MenoLabs," commented John Melo, president and CEO "We have grouped our other, more nascent, brands under one leader to achieve economies of scale."
Biossance, Pipette, JVN, and Rose Inc. products were available in more than 14,000 physical locations compared to approximately 2,100 in 2021, the company said.
For the full year, Amyris’s core revenue was $269.8 million, an increase of 44% compared to $188.0 million in 2021. The results include consumer revenue of $176.9 million, an increase of 92% compared to 2021. Amyris Technology Access revenue of $92.9 million, a decrease of 3%. Total revenue of $269.8 million decreased 21% compared to 2021, which included $153.8 million from strategic transactions.
Amryis expanded its Technology Access partnerships in a recent agreement with Givaudan for beauty and personal care. It has existing partnerships with DSM in flavor and fragrance and Ingredion in food and beverage.
CEO Melo said the company is also “ actively working on a partnership for human health."
During 2022, Amyris reduced its use of cash for operating and investing activities sequentially each quarter from ($200) million in Q1 to ($189) million in Q2 to ($164) million in Q3 to ($97) million in Q4. The company also reduced its inventory holdings in Q4 and continues to build on these initial cost and cash improvements. Although management was not fully satisfied with the progress toward reducing operating expense, the company did substantially reduce the costs involved with inbound air shipping from Q3 to Q4 by $9.2 million or 72% and delayered its leadership structure effecting a $1.2 million initial restructuring charge.
"We have much more to do on our Fit-to-Win agenda and are committed to delivering quarter-by-quarter improvements in profitability and cash generation from operations. We continue to be well-positioned to execute our Lab-to-Market strategy. We own the underlying science, we are the long-term producer at scale, we partner with leaders in their respective end-markets and bring some of the best performing clean beauty, health and wellness products to consumers with our family of leading prestige brands. To fully leverage our assets and drive enterprise value, we are focused on efficiency, lowering our cost and significantly simplifying our portfolio. We expect these actions to meet our objective of ending 2023 as a self-sufficient enterprise," concluded Melo.
Core revenue (consumer plus technology access revenue) is expected to follow approximate quarterly phasing of 15% of full year core revenue expected in Q1, 25% expected in Q2, 27% expected in Q3, and 33% expected in Q4. Consumer brands are expected to continue to deliver industry leading growth in skin care, hair care, color cosmetics, baby care and healthy aging, noted Amyris.
"We have focused our brand leadership teams and are making differentiated portfolio choices placing our investment on attractive beauty categories such as skin care, hair care, color cosmetics, baby care and healthy aging with our flagship brands Biossance, JVN, Rose Inc., Pipette, Stripes and MenoLabs," commented John Melo, president and CEO "We have grouped our other, more nascent, brands under one leader to achieve economies of scale."
Revenue Results
Consumer revenue growth in Q4 was primarily driven by Biossance, JVN and MenoLabs. Overall performance within the company's clean beauty consumer portfolio outperformed the public peer group in year-over-year revenue growth, according to Amyris. Direct-to-consumer sales grew 61% compared to Q4 2021, and retail sales through third party channels grew 66%.Biossance, Pipette, JVN, and Rose Inc. products were available in more than 14,000 physical locations compared to approximately 2,100 in 2021, the company said.
For the full year, Amyris’s core revenue was $269.8 million, an increase of 44% compared to $188.0 million in 2021. The results include consumer revenue of $176.9 million, an increase of 92% compared to 2021. Amyris Technology Access revenue of $92.9 million, a decrease of 3%. Total revenue of $269.8 million decreased 21% compared to 2021, which included $153.8 million from strategic transactions.
Amryis expanded its Technology Access partnerships in a recent agreement with Givaudan for beauty and personal care. It has existing partnerships with DSM in flavor and fragrance and Ingredion in food and beverage.
CEO Melo said the company is also “ actively working on a partnership for human health."
During 2022, Amyris reduced its use of cash for operating and investing activities sequentially each quarter from ($200) million in Q1 to ($189) million in Q2 to ($164) million in Q3 to ($97) million in Q4. The company also reduced its inventory holdings in Q4 and continues to build on these initial cost and cash improvements. Although management was not fully satisfied with the progress toward reducing operating expense, the company did substantially reduce the costs involved with inbound air shipping from Q3 to Q4 by $9.2 million or 72% and delayered its leadership structure effecting a $1.2 million initial restructuring charge.
"We have much more to do on our Fit-to-Win agenda and are committed to delivering quarter-by-quarter improvements in profitability and cash generation from operations. We continue to be well-positioned to execute our Lab-to-Market strategy. We own the underlying science, we are the long-term producer at scale, we partner with leaders in their respective end-markets and bring some of the best performing clean beauty, health and wellness products to consumers with our family of leading prestige brands. To fully leverage our assets and drive enterprise value, we are focused on efficiency, lowering our cost and significantly simplifying our portfolio. We expect these actions to meet our objective of ending 2023 as a self-sufficient enterprise," concluded Melo.
Q1 and 2023 Financial Outlook
Total revenue (core revenue plus strategic transaction) is expected to grow 95-100% for full year 2023 compared to 2022, Amryis said in its financial release. The strategic transaction with Givaudan is expected to generate $200 million of license revenue in the second quarter, according to the company.Core revenue (consumer plus technology access revenue) is expected to follow approximate quarterly phasing of 15% of full year core revenue expected in Q1, 25% expected in Q2, 27% expected in Q3, and 33% expected in Q4. Consumer brands are expected to continue to deliver industry leading growth in skin care, hair care, color cosmetics, baby care and healthy aging, noted Amyris.