MAV Beauty goes back into the red after 'challenging' year

By

Benjamin Fitzgerald

Published
Mar 25, 2022

MAV Beauty Brands announced on Thursday net sales gained by almost 15%, with the lift unable to offset a profit dive for the fourth quarter, as the Canadian beauty company went back into the red to end its full year 2021.

The Vaughan, Ontario-based company said net sales for the quarter ending December 31 gained 14.5% to $26.7 million, compared to $23.3 million in the same quarter 2020. For the Canada and U.S. region, revenue increased by 11.9% to $24.4 million, on the back of higher sales from its Marc Anthony and Cake Beauty brands, which offset reduced sales from Renpure and The Mane Choice.

Internationally, revenue increased 38.4% to $2.2 million, reflecting continued recovery from Covid-19 related disruptions and improved production and logistics service levels compared to the prior year, said MAV Beauty. Quarterly net loss came to $142,000 after a net income of $108,000 in the same quarter in 2020.

For the full year ending December 31, MAV Beauty sales fell 6.7% to $107.2 million, while net loss for the year was $97.6 million, after reporting a $6.5 million profit in 2020, the company said in its earnings update.

​"Revenue increased by 14.5% in the quarter compared to prior year and there were multiple performance highlights from the portfolio, including the sustained growth of the Marc Anthony and Cake brands. Nonetheless, it was a challenging quarter and year overall as we felt the impact of net distribution losses while our margins and profitability were also affected by ongoing supply chain cost pressures and other factors, said Serge Jureidini, president and CEO of MAV Beauty Brands.

"We continue working to mitigate these headwinds. In a growth oriented haircare market, our focus for 2022 is to stabilize the business through enhanced execution and building the desirability of our brands, notably through product innovation. Over time, we continue to believe the platform will deliver above-category growth from a diverse and complementary brand portfolio."  

Founded in 1995, MAV Beauty Brands is a global personal care company that operates ​Marc Anthony, Renpure, Cake Beauty and The Mane Choice brands. Its hair care, body care and beauty products are sold in over 25 countries around the world.