Silk Laser Australia’s full year results for FY23 revealed the aesthetics chain has lifted revenue by 20 per cent to $97.6 million. The half-year results reported revenue at $49 million.
Network cash sales rose 23 per cent to $199.7 million; excluding the Eden acquisition the rise was 21 per cent to $196.2 million. Adjusted EBITDA hiked 13 per cent to $24.8 million.
The business has a strong balance sheet with a cash balance of $20.8 million. Net debt sits at $9.1 million at 30 June 2023 (excluding IFRS 16 lease liabilities).
Silk’s co-founder and managing director Martin Perelman said “Silk delivered solid results despite inflationary pressures increasing the cost of doing business.
“We successfully integrated ASC/TCC into the business and expanded our network further with the strategic acquisitions of Unique and Eden Laser. Through organic growth and strategic acquisitions, we have significantly strengthened our position in the non-surgical aesthetics market.
“The growth of our network has enabled our franchise partners to leverage the significant buying power achieved through scale while also benefiting from the efficiency and cost-effectiveness of centralised support functions,” he said.
The laser clinic chain increased price in its injectables services and lifted average client annual spend from $914 to $969.
It rolled out price rises across three skincare brands to deliver higher margins. Silk introduced new skin treatments and simplified the treatment menu.
Silk Laser acquisitions
In July 2022, Silk acquired Unique Laser: one joint venture franchised clinic and four traditional franchises in Victoria. These clinics have been rebranded to ASC and fully integrated into the group.
In March this year, Silk acquired the Eden Laser Clinics business of nine clinics in NSW and one in ACT.
The acquisition bolstered Silk’s presence in the strategically important Sydney market.
The focus is now on rebranding and fully integrating the clinics.
It was announced in June that the board had recommended to its shareholders that the proposed acquisition by Wesfarmers-owned API goes ahead.