Amyris credits clean beauty for sales growth amid global economy crises

10 Nov 2022 --- Beauty product consumers are still buying luxury and premium products from Amyris, flags the company in its third-quarter report, despite global inflation putting a strain on the purse strings. Key beauty categories such as clean beauty, where Amyris has leading consumer brands, is also buoyant, notes the company. 

Consumer revenue of US$46.6 million increased 98% compared to Q3 2021, according to the report.

“We are evolving to balance profitability and use of cash with revenue growth. We expect to continue delivering the leading revenue growth among our peers in consumer health, beauty and wellness end-markets along with continuing as the leader in biomanufacturing and clean, [environmentally] sustainable ingredients supply,” the company states.

John Melo, president and CEO at Amyris informs that Q3 2022 core revenue of US$71.1 million grew 49% versus Q3 2021. “Amyris outperformed key players in the beauty space,” he says.

“Our ingredient business continued to sell out all production and entered the fourth quarter with an order backlog.”Amyris entered the emerging menopausal category through its MenoLabs acquisition and recent launch of Stripes.

Growth and expansion
Consumer revenue growth was primarily due to the development of Biossance, JVN, MenoLabs and Rose. However, the company reports that all brands within the company’s clean beauty consumer portfolio demonstrated an above-market increase in revenue year-over-year.

Amyris brands were available in nearly 14,000 physical locations compared to 2,100 during the same quarter last year. The company continued its international expansion, particularly in the UK and European markets.

As for Q4 2022, Amyris’ updated financial outlook expects core revenue to be “more than US$100 million.”

Melo states that the company is increasingly focused on brand integration, cash conversion efficiency and cost optimization to achieve profitability goals. “To reach these goals, we completed previously announced fundraising of US$80 million in Q3 and US$100 million in Q4. Additionally, we are on track to complete a substantial strategic transaction by year-end.”Amyris reported that its omnichannel strategy delivered strong growth, with D2C e-commerce representing 45% of Q3 consumer revenue (Image Credit: Amyris).

Initiatives and innovations
During Q3, Amyris implemented company wide “Fit to Win” initiatives to reduce the use of cash and improve the company’s cost structure. These reportedly resulted in approximately US$10 million in earnings improvement in Q3, according to the company.

“We have built the leading Lab-to-Market technology platform for synthetic biology and bio-manufacturing,” informs Melo.

Amyris states that the benefits of these initiatives are accelerating in Q4 and are expected to have a favorable annualized impact of US$150 million in 2023.

“We have the scale, growth rate and business model that enables us to evolve our focus to operating profitability. Our current growth momentum has continued into Q4, and we are tracking toward our Q1 of more than US$100 million in core revenue while controlling our costs and improving our use of cash,” Melo concludes.

By Radhika Sikaria