Reported figures all in U.S. Dollars
Boston, MA, Nov. 18, 2024 (GLOBE NEWSWIRE) — MiniLuxe Holding Corp. (TSXV: MNLX) today announced its financial results for the 13 and 39 weeks ended September 29, 2024 (Q3 2024 and YTD Q3 2024, respectively). The fiscal year of MiniLuxe is a 52-week reporting cycle ending on the Sunday closest to December 31, which periodically necessitates a fiscal year of 53 weeks; fiscal years referred to in this release consist of 52-week periods. Unless otherwise specified, all amounts are reported in U.S. dollars.
The third quarter marked continued progress against key strategic priorities for the Company:
- Accelerating overall studio contribution growth,
- Increasing fixed cost leverage and SG&A efficiency
- Focusing growth through operating and franchise partners and a narrower set of innovative products
Overall, Q3 represented a quarter of choices. We made some tradeoff choices between growth in favor for more profitability, but most important we made strides on our choice to complement Company-owned Studios with selective partnerships, JVs and franchisees. Notably the Company began the integration and conversion process of Sugar Coat (majority-owned JV nail studio in Atlanta) which has already become accretive to the business, said Tony Tjan, CEO and Co-Founder of MiniLuxe.
MiniLuxe’s third quarter demonstrated year-over-year (YoY) revenue growth of +6% which included intentional efforts to manage more controlled and slower growth of its product channel. This strategy traded higher growth for more profitable growth and as such the Company experienced its strongest quarter in recent history for fixed cost leverage in the business. Drivers of higher margin growth included:
- +5% YoY growth in MiniLuxe’s expanded waxing services which provide higher gross margin dollar flow-through per service and cross-selling opportunities
- Premium services overall increased +29% YoY across MiniLuxe’s Core Studios
- Total (EPA:) Company gross profit was up +12% YoY
Operating burn for YTD Q3 2024 saw ~$3.8M improvement over prior year when adjusting out for ERC received in early 2023. From the cost side of the business, key highlights include:
- Total Company SG&A (inclusive of corporate, studio-related, and non-operating overhead) was down 28% YoY while non-operating SG&A (as internally measured) was reduced materially by ~35% versus the same period in 2023
- Significant efficiencies have also been gained at the unit economic level…
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