Beauty Health announces $100M share repurchase program, transformation program

Beauty Health announced the launch of a business transformation program. Alongside this, its board has authorized the company to repurchase up to $100M of its common stock. This fall, BeautyHealth will initiate a two-phase transformation program to reduce costs and streamline its operations to drive profitable growth. Phase 1 of the program is expected to realize annualized cost savings of over $20M during Q1 2024, with Phase 2 expected to realize over $15M annualized cost savings during Q2 2024. In Phase 1, the company will reduce costs by: Streamlining BeautyHealth’s go-to-market footprint, creating unified centers of excellence to support our brand growth. Modernizing processes by leveraging technology and automations. Advancing initiatives to drive manufacturing efficiencies. In Phase 2, the Company expects cost savings to be primarily driven by optimizing manufacturing operations. While implementing the transformation program, BeautyHealth does not expect to execute large-scale M&A transactions. The company will provide an update on the program during its third quarter earnings call in November 2023.