The SILK Laser Australia Ltd (ASX: SLA) share price has been a very strong performer on Wednesday.
In morning trade, the laser clinic company's shares are up 20% to $4.09 following the release of its full year results.
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SILK Laser share price rockets after beating upgraded guidance
- Network cash sales increased 68% to $85.1 million
- Reported revenue grew 82% to $58.9 million
- Pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) up 180% to $17.3 million
- Pro forma net profit after tax up 839% to $7.5 million
- 11 new SILK clinics opened bringing network to 116 after acquisitions
What happened in FY 2021 for SILK?
SILK was on form in FY 2021, delivering a 68% increase in network cash sales to $85.1 million and a 180% jump in pro forma EBITDA to $17.3 million. The latter was ahead of its upgraded EBITDA guidance range of $15 million to $16 million, which explains why the SILK Laser share price is performing so strongly today.
This was driven by a 52% increase in like for like sales, new store openings, and strong demand in the injectables and body categories. Underpinning this was a 28% increase in average customer spend to $605.
What did management say?
SILK Laser's Co-Founder and Managing Director, Martin Perelman, said: "The past 12 months have been a busy and highly successful period for SILK, and I am very proud of our first full year results delivered as a publicly listed company."
"Given the dedication and commitment of SILK's employees, franchisees and joint venture partners, and our focus on excellence in customer service, all of SILK's service categories performed in line or above expectations, and the Company is well-positioned to drive long term growth."
What's next for SILK Laser?
Also potentially giving the SILK Laser share price a lift today was a trading update and management's outlook.
It revealed that July 2021 sales and EBITDA exceeded what was achieved in July 2020 despite lockdowns. This is a big positive given that July and September 2020 were the most profitable months of FY 2021.
Mr Perelman said: "The underlying business foundations of SILK are strong as demonstrated by like-for-like clinic performance when adjusted for lost trading days due to lockdowns. We're carefully managing the COVID-19 challenges across SILK, and at present approximately 80% of our SILK clinic network remains open. Our priority is to operate in a way that keeps our customers and team members safe. Our clinics continue to build waiting lists for clients in states where clinics are closed, to capture pent-up demand in readiness for easing of lockdown restrictions. We intend to provide a further update on Q1 FY22 trading in October."
Management also revealed that it plans to open 4 to 8 new clinics in FY 2022, focused on Australia's East Coast and New Zealand.
It sees these geographical catchments as key growth markets, with up to 25 potential new sites identified for FY 2022 and FY 2023 across Australia's East Coast. Whereas in New Zealand it aims to add 4 new clinics in FY 2022, taking the total number to 19.
The SILK Laser share price is up 14% in 2021.
