Olaplex Holdings, Inc. has announced its first financial results following its IPO, which valued the company at $15 billion. For the third quarter 2021, the company reported an 81% year-over-year rise to $161.6 million, while nine-month sales totaled $431.9 million, a year-over-year gain of 128.4%. The company is now projecting a 2021 full-year net sales total of $580-588 million, compared to $282 in 2020.
In the third quarter, the professional business' sales increased 57.6% to $75.0 million, comprising 46.4% of net sales. Specialty retail grew 128.1% to $46.3 million, accounting for 28.7% of net sales. Finally, direct-to-consumer rose 86.9% to $40.3 million, comprising 24.9% of net sales.
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Gross profit increased 103% to $127.5 million in the third quarter, while gross margin increased 870 basis points to 78.9%.
Adjusted gross profit increased 78% to $129.2 million, or an adjusted gross margin of 79.9%. This compares to adjusted gross profit of $72.6 million, or an adjusted gross margin of 81.2%, in the third quarter of 2020.
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Net income increased 99.9% to $56.6 million, or $0.08 per diluted share compared to $0.04 per diluted share in the third quarter of 2020. Adjusted net income was $74.4 million, or $0.11 per diluted share, compared to adjusted net income of $45.8 million, or $0.07 per diluted share in the 2020 third quarter.
Adjusted EBITDA increased 63.3% to $106.8 million, or 66.1% of net sales, compared to $65.4 million, or 73.1% in the third quarter of 2020.
Adjusted EBITDA in the third quarter of 2021 was negatively impacted by $4.3 million, or 265 basis points, expressed as a percentage of sales, due to incremental costs related to accelerated vesting of cash-settled unit awards and the re-valuation of non-vested cash-settled unit awards for non-executive employees due to the valuation of the company at the time of the initial public offering.
“We delivered an outstanding third quarter highlighted by significant growth across our key financial metrics, reflecting the power of our disruptive business model focused on improving hair health with great products backed by science," said JuE Wong, Olaplex's president and CEO. "Our third quarter net sales increase of 81% year-over-year was fueled by broad-based strength for our Olaplex regimen across our omnichannel distribution globally and a favorable response to our new product introductions. During the quarter, we also marked a milestone for our company as we completed our initial public offering. I want to thank our entire team and partners for their hard work and dedication toward this significant event. As we look ahead, we believe Olaplex is well positioned for long term growth. I am extremely proud of our passionate and devoted team that continues to contribute to our performance this quarter and look forward to continuing our successful growth as a public company for the benefit of all Olaplex stakeholders.”