Amyris Reports Record Third Quarter Consumer Revenue

Synthetic biotechnology company Amyris, Inc. announced its financial results for its third quarter ended September 30, 2021. The company, based in Emeryville, Calif., provides ingredients for personal care formulation and is also the driving force behind a growing number of consumer brands active in the realm of clean beauty.

The record underlying third quarter revenue of $ 48 million increased 40%, continuing the year-over-year and sequential growth trajectory. Record revenue of $ 23 million increased 89% from the third quarter of 2020.

The total number of consumer brands in the Amyris stable grew from one in 2018 (Biossance) to eight in the third quarter of 2021. The company launched four brands in the third quarter alone.

Year-to-date, third-quarter 2021 consumer revenue of $ 60 million has increased from $ 6 million for the same period in 2018 to 10.7 times or a CAGR of 121%.

“Amyris delivered another strong quarter as well as strong strategic execution in a challenging global supply chain environment,” said John Melo, President and CEO. “Once again, we achieved record underlying revenue and record consumer revenue demonstrating continued year-over-year and sequential growth. We launched four new consumer brands during the quarter, further strengthening our presence in the clean beauty and personal care end markets. Rose Inc. T clean color cosmetics, JVN clean hair care and Terasana clean skin care are each formulated with one or a combination of our unique sustainable ingredients that we have created and manufactured using the power of our platform. In addition, we launched Olika We made three acquisitions, including Olika, Beauty Labs and MG Empower, adding strategic digital selling, online influence and social selling capabilities, as About 50% of our consumer revenue is generated through e-commerce, which is our fastest growing, highest gross margin business channel. “

“We continued to advance the construction of our new ingredients plant in Brazil with production slated for early 2022 as well as establishing our consumer production facility in Reno, Nevada by mid-July. next year, “he said.

Melo said disruptions to the global supply chain combined with late-quarter launches of new brands resulted in lower than expected revenues.

Pipette is a brand of childcare.

“Shipping delays have had an impact on raw material supply and customer shipments as freight costs have increased dramatically. Although global in nature and persistent in the fourth quarter, we believe these are short-term issues and have no impact on our long-term growth goals. We continue to experience very robust demand that supports more than our outlook. By 2022, we are taking control of our supply chain with investments in Brazil and Reno to reduce our dependence on third parties and our exposure to shipping delays, resulting in lower costs. operating costs and an increase in gross margins, ”he said.

Melo said the company expects total year 2021 revenue to be between $ 330 million and $ 370 million, doubling its full year 2020 results.

“We have inventory available to deliver within this range and subject to a supply chain slowdown, headwinds could reach an increase,” Melo added.

In September, Rose Inc. and JVN hosted a number of launch events in the United States and abroad, including social media campaigns to accelerate brand awareness and educate consumers about the power squalane, hemi-squalane and biosilica as basic ingredients differentiated from these brands.

JVN was launched with nine SKUs in 62 Sephora stores, with stores expected to triple in the next quarter. Rose Inc. was launched with 16 SKUs at Sephora in North America and Space NK in the United States. Both brands are ramping up revenue in the fourth quarter and are expected to exceed $ 20 million each in the first 12 months.

Biossance’s international expansion continued through Space NK in the UK. The brand is now present in 14 different retail chains around the world.

Olika is a brand of hand sanitizer that is now part of Amyris.

Amyris’ baby care brand, Pipette, is now available in 236 new stores across Canada; and it was also launched in 118 new stores in the United States during the third quarter.

And expect more mainstream brands to come. Amyris says she is finalizing negotiations for three more brands over the next three months.

On the ingredients side, until the end of the third quarter, squalene sales volumes exceeded total sales volumes for 2020, according to Amyris. Demand for hemi-squalane for hair care is driven by increasing regulatory pressure to reduce the use of environmentally harmful silicones, the company said.

According to officials, during the third trimester. Amyris has experienced supply chain issues 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. In addition, he said he incurred additional costs due to the increased shipping costs and the acceleration of air travel. The company said it expects port shipping and unloading issues to continue into the fourth quarter.

Ingredients revenue for the third quarter was $ 13.3 million, down 30% from $ 18.8 million in the previous year quarter. For the nine months ended September 30, 2021, ingredients sales were up 1%.

Melo also drew attention to the company’s JV partnership with ImmunityBio for the commercialization of a second-generation COVID-19 vaccine that expands its business into biopharmacy.


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