Silk Laser hits $49m revenue in first half of FY2023

Silk Laser $49m revenue
Martin Perelman, co-founder and Silk Laser Clinics managing director. (Source: Supplied)

Silk Laser heads into 2023 with strong balance sheet of $19.4 million cash, and net debt of $3 million.

Adjusted EBITDA was up eight per cent to $13.7 million, and adjusted NPAT was up 15 per cent to $6.6 million.

Silk Laser co-founder and managing director Martin Perelman said “We’ve had a very busy first half, successfully integrating ASC and TCC, acquiring Unique and Eden Laser, launching new products and services, growing client numbers, and implementing new systems to create a more efficient support office and further improve performance.”

Total network cash sales were up 35 per cent in H1 FY23 to $102.8 million. Revenue was up 21 per cent to $49 million.

Aggressive growth through M&A

Perelman told Franchise Executives, “We’ve had such aggressive growth with the mergers and acquisitions of new companies, it’s been a challenge, and I’m pleased with how well people and clinics have performed.

“When we first listed, our goal was 150+ outlets. Taking on Eden from March 1 will take our footprint to 142, and we will have another four clinics organically by June 30.

“If we look to FY24 it will be the same sort of playbook with future M&As, those are the targets we’re aiming for.”

Perelman said he is conscious of handling the M&As integrations and upgrading systems so the company is “running seamlessly” before further expansion.

Capital management could include a share buyback

“We are always looking at capital management. One option is M&A, one is organic growth, another we are considering is a share buyback. This would give us the opportunity to create shareholder value. We’ll continue to assess over three to six months,” he said.

The company logic is to move the multiple brands into one and this is a focus over the next 12 to 18 months.

“There are real opportunities to grow in that market. Eden is a majority company owned business, we might bring in franchises.

“Twenty five of Silk clinics are corporate which we are really retaining for key franchise partners. I’m a big believer in a franchise network and the value a franchise partner can add,” said Perelman.

Sales boost for proprietary skincare

Good sales in New South Wales and Victoria where the bulk of franchises are based brought in a 50 per cent growth in franchise fees to $9.1 million.

“Our franchise fees percentage remains the same but we have more clinics on board,” Perelman said.

Sales rose 65 per cent to $13.4 million in part through extended distribution of proprietary skincare to a larger clinic network and Adore Beauty.

Investments continue

Silk continues with its ongoing upgrades for point of sale and injectables scripting.

“From July 2022 to December 2023 we are investing in long term sustainable growth. 

“We’ve had a really good start to January/February We believe we should have a strong second half of the year, that’s our focus,” said Perelman.