AMRS - Earnings call transcript Q4 2021

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Operator

Welcome to the Amyris' Fourth Quarter 2021 Financial Results Conference Call. This call is being webcast live on the Events page of the Investors section of Amyris website at Amyris.com.

As a reminder, today's call is being recorded.

You may listen to a webcast replay of this call by going to the Investors Section of Amyris' website. I would now like to turn the call over to Han Kieftenbeld, Chief Financial Officer of Amyris. ahead. go Please

Han Kieftenbeld

will to and to, note that website. thank full EBITDA. is gross most are expense and This of joining today. technology summary furnished sales Form and core will our consumer website. accompanying release report call, distributed and on adjusted including Reconciliations is measures, margin, as the the us our John press results Please in comparable these resection non-GAAP measure our Good SEC's available non-GAAP revenue, of Melo, you with President me and to I also update discussions as The business financial X-K John financial provide or year. measures cash Officer. available but our of the and is on quarter release With well financial will website, for morning a on presentation for review on this the you Chief GAAP the slides financial morning, current directly hear the not respect press operating contained today, on limited which access Executive

be update forward-looking new contained Exchange detailed information, obligation of full-year or XX-K Commission, Amyris March with uncertainties. our Securities management's make and including growth about priorities, as result prospects. These and opportunities forward-looking to XXXX, filed expectations we and events statements, may are and and actual future information filings current other on differ to circumstances, X, and afternoon, future for transactions, due those anticipated a events During call, any Amyris' goals this Including XXXX. in our events, these well time-to-time materially as this Amyris' future disclaims and market otherwise. as will XXXX for results, in weather strategic outlook statements beyond. and risks future which will and based milestones, from including the statements

today, is slides begin sections like we the John. I'll included to our that on webcast to. we The following Amyris's also of Before call. the Relations will the in posted presentation John. over slide refer call I'd now turn a be note website to will Investor

John Melo

you good today. and morning, Han, us everyone. Thank you, for joining Thank

provided transformative we partnerships. will that our markets technology scratching performance. the of our call, in update technology to of performance, retail operating of just now through confirm I’m slide via both year and sustainable e-commerce the never Then from strategy compromise on and benefit homegrown via an for XXXX existing I'll no clean brands products technical update. stronger our During technology the business, demonstration brands our financial surface and provide four. providing our business I'll end our our outlook. new to The integration to back and platform, of consumer potential access we global growth focus continues for capabilities forefront was of our and licensing while and to distribution consumer developed advantaged fragrance our to ingredients, pass derived of with Slide the our Lab-to-Market access significantly from partnerships a technology our a significantly that commercial at for strategic rates Interests in has and of enabled the collaborations this fourth wellness Han access chemistry growing success and grow quarter us business flavor been and and are items. our of consumer Slide in on quarter business our Amyris is our where and and quarter fourth and strong consecutive business, a XXXX, Lab-to-Market capacity is platform, consecutive on capability to confirm fermentation double-digit and growth is by are which in maintaining excludes of puts fastest our in the have accelerating is of portfolio. technology markets revenue we brands. fifth that core beauty was health, and in of we molecules our transactions Amyris This manufacturing and fourth growth strong the built quarter consumption. The growth I the consumer our the our X. access simplified from clearly the In in one-off can consumer sustainable now the We business. acceleration business. total X. most

XXXX the over XX% our growth increased revenue delivering core quarter of business consumer with fourth fourth year-on-year. Our quarter XX%

growth. business we full consumer total year, the XX% XXXX year-over-year our and delivered For delivered XX% versus revenue growth

dollars our margin to XX% grew managed growth Our and XXX% operating expenses we year-over-year, gross year-over-year.

perform continued revenue Biossance Purecane well we the first record. another the very year setting to strong is group in brands. accelerating a Biossance, Our existing and new this of and with from of combined brands category quarter, very Pipette leading expect

Inc. of JVN, group This include new anticipated first beyond and Brazil, performing Rose JVN for excellent than Our with expectations. quarter the Costa brands and on that track an Rose our incredible Hair brands year. performance quarter delivered well better and in is a Inc.

brands well And strong maintaining from are a XX% we XXXX. was For consumer grow pre-COVID through fourth this physical expect our the of markets, very healthy from our beyond direct we are XX% quarter sales experiencing in of levels. we most very our of mix store consumer revenue revenue own of our our to international around and significantly About to websites. in partners

permanent for in the are and international store The Our very Europe, experiential and Biossance. brand and open markets. Brazil stores sales Biossance is We eventually markets pop-up Chinese for UK, a growth brand JVN focused open showcase remained retail delivering strong has Miami, will two These retail first other expansion become quarter. the and the the on one the store. in

coming the We purchase are to currently conversion over seeing XX% for consumers store. into

in traffic strong performance, very site. our Miami we in store In addition the biossance.com experienced also to strong improvement to a

online and improves accelerates we growth that As our an our in part these in of believe gains omnichannel store key market experiential share approach, markets. an markets

retail The stores limit year will presence Our and next key experience markets that X. goal in in is to brands. our provide four consumer the London over deep focus LA. three be experiential to eventually opening a with New and York, Slide stores flagship on to our

Our early in of progress Bonita, start new ingredients the track great second quarter. on in production Brazil, has for made the we and Barra plant construction are

We for on have the joint the world XXX contractors advanced with our and completed world We with beef, on footprint of the employees largest natural way. of a construction lowering sustainable delivering world exporters and partnership Minerva, factory one on world's most venture partner the carbon supplying in ingredients focused production protein. site of a the site the the in leading focused the fermentation in making and

our platform focused partnership product on into in are our and excited the sales proteins. technology We are commercial delivering for first for about XXXX, expansion of this very

our with also for and the advancement technology. completed joint We ImmunityBio ssRNA commercialization of venture our vaccine

the to The our ssRNA rapid this first and and respiratory COVID-XX, protection technology response and for platform potential viruses pandemics. future of application

Our the billion is is successful clinical Amyris. for and and JV focused needs ImmunityBio short-term commercialization very work vaccines focus is leading clinical capital assets has completion limited from trials. a invested on vaccines. of has for X human the trial year the manufacturing The in

from women the closing experience successfully quarter, growth we portfolio other our hot in a to with the as addition the during near strong and closer very with with in of flashes with MenoLabs, stripes, JV probiotics building we quarter significant can proven expect to fourth of leading business complementary scaled address Since to capability the fermentation a symptoms direct a common menopause this on acquisition and very commercialization brand We and menopause once adjuvant portfolio XXXX. the in this We menopause. Watts. add revenue to production agree will squealing the view brand successful. the have and to market Naomi are are terms for to vaccine – a We trials deliver –

than to $XX annual into combination significant is valued We approach revenue, This in at double-digit for billion and of with $XX million to with sustainability. brands in XXXX ideal expect Amyris’s and growth XXXX both market growth XXXX science-backed a underserved more wellness beyond. over deliver

XXXX. we of our execution licenses, XXXX technology align each about quarter leadership revenue. organized key of components, ingredients, our collaborations, technology and and the to product fourth we company. business company and made access. combine During year the revenue strategy. same operating structure brands. quarter, in the product consumer consumer, all model changes our include around Consumer In our two In activity In R&D consumer fourth enables our that our of contributed or with revenue business access, the full for We we these technology important sells and business biggest became single our to

walmart.com me appointed experienced As partner simplifying Anne business, leaders our operations. consumer Walmart support the and She with to to growth. lead transformative recruited revenue helped also China and in leaders our led and Myong we've brand turnaround to part the our and accelerated two of a business. business been focusing is President of Anne the leader. of our of has lead transformation

access, technology we who experienced and including and teams, innovation leading in experienced sales business a the and led recently business Mike at very large has appointed For Clorox. marketing leader Rytokoski, for Goodyear China Unilever to-business

support We also of brand. continue expanded and the the will who JVN the responsibilities to growth of run Biossance Catherine also Gore,

consumer the development and we new Additionally, with She'll of and and Caroline responsibilities leader of also expanded Rose creation of our continue as the me the Hadfield. innovation. in Inc. partner brands product

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Third, marketing.

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for Let should expect what me our framework financial you from now us. share

consumer growth and products, to versus new into XXXX of very new First, in than year markets growth more last accelerating this with much strong XXX% future. brands, delivering for a revenue well the pipeline support growth, new

Secondly, have in expenditures the this continuing In including years few XXXX. several a XX% to And quarter. cash we brand This expenditure deliverables growth progress. the operations annual rate technology to delivering framework, track for key expenses thirdly, fourth revenue to positive excludes next from our addition at financial XX% then capital and new access

moving at fourth consumer own this gross manufacturing to factories in in XXXX. we product factories, and fulfillment margin an least combination own controlled consumer our of XXX First, of half our to will XX% of control points be the by deliverable second The estimated add or the to improvement quarter basis that of XXXX. business

of is quarter, our Renal. end products have quarter the XX% the of This already schedule. ahead one of first volume produced of we As highest in

fourth achieving doubling X to current will consumer the direct-to-consumer quarter, of to websites. website we our the consumer be visits monthly number Secondly, visits million by our

London and ingredients profitability. in produced our and improvement City This year. early York the branded Barra experiencial of Barra open million over Fourth, New retail profit have and sites half the Bonita dollars to quarter of second Miami, Thirdly, startup is delivering in second operational from the gross $XX in Bonita of most ingredient companies been their in lastly, we then of one this five our in track expect of. at to scale sector three to new scale to ingredients ingredients sales three alone. now And us five record rate a This year. have to is new are lucky we're and a proud ingredient a year. Most life

planet the world our technology to and a We are with leading that's critical making sustainable. healthy

what We growth. to are demanding are and it's delivering showing consumers our revenue

a growing We brands of our the growth beauty sector delivers leading and to of the health, be operational markets and owner from are wellness company in companies the one also fastest that consumer evolving in company our and excellence.

to is and growth core delivered goal with year best business Our end our in the doing this profitably. we've it ever

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This of and accelerating world's all deep needed is markets. much beauty capacity in adding leadership sustainable to wellness clean the and transition capability. health, and are We manufacturing service

to Let Han. turn me now

Han Kieftenbeld

performance oriented provider Please It Once of to Amyris. full with you, the Growth presentation for consumers. us slide by to with active funding. well us clean brought have sales again, Thank refer of brands year. a reason the of John. wellness. revenue calendar of business the as three to as core is add available effort further that Record to technology beginning XXXX. high the the success clarity will the equal at have going concerted of sum on X. presenting business that requires revenue are brands, XXXX two revenue these year on consumer records the we parts and consumer up Increasingly, We that to opportunities revenue for the reflects very a concluded more in from forward. sustainably eight determined in beauty return resulted and in be in and access this growth and of quarter we We consumer clean to way turn of and for and financial year, QX three organization for focus the our positioned high and year choice our the new investments

issued Cash at the million from offering allowed were us debt debt $XX consumer call this the million at and end million. accelerated end the to Net to fourth and larger new servicing The after the costly million secure restrictive $XXX retire QX much we $XXX proceeds convertible the fees, the quarter of cash $XXX fund and our the of that in During notes. at This end of legacy $XXX of capped business. and to business XXXX. quarter proceeds and will million. of was support compares growth purchasing infrastructure

presenting We Core and grow XX% scale. as we are compared increased in to consumer growing a versus good how fourth of quarter Please rapidly believe prior revenue interim of $XX.X items XX% transactions increased revenue records reflects the business to other consumer increased reflection in of one-off $XX.X strategic revenue $XX.X the and require includes million, technology XXXX. year. revenue when manage fashion is best which excludes and today. the access cash to to Core We million, revenue will a the revenue and turn million, self-sustaining XX% access a technology and we and this business XX. which slide included which

$XX of completed factors. of of a in consumer year, $XX compared revenue Consumer an Core increased improved million to $XXX to QX from entire transactions million, million, increased number million in which includes revenue of access revenue and Core of included revenue $XXX.X proceeds, record to compared XX%. revenue technology of resulting revenue QX XX% million, XX% XXXX. increase increased and total when to the and million of XXXX $XXX.X XX% For strategic $XXX.X XXXX.

record lot had into XXXX. brand another Our Biossance and flagship carries year of skincare a momentum

to two JVN revenue of brands and quarter External Squalane primarily empower slightly socially Early fourth to collaboration Rose two our increased two intersect and of technology produced ingredients for can technology QX XX% new sacrifice XXXX, also growth. Hemi-Squalane, validates responsible and generated who offset belief demonstrating quarter, of due performance profile Our quality such traction records licensing fermentation, in significant gained Haircare. our compared fourth increased the combined year-over-year interested these further during access Fourth as high lower particularly and revenue. shared revenue demand to don't Inc. consumers community values, that through brands, brands consumption by during quarter when ingredients platform performance. XXXX, want

Our gross fourth of core XX% $XX margin XX% of dollars. compared margin was quarter or This XXXX million, to is an non-GAAP QX revenue. increase

For core million was of XX% or grew in the non gross revenue $XX.X from which full million margin revenue, XXXX. or year, GAAP $XX.X of XX%

noted, in the have we of core our investing been substantially As future we businesses.

important We XX. Barra Please year. this production in margin of Reno the for the drivers half plant expect be to facility turn and gross ingredients Bonita to improvement the consumer second slide

Looking key and scorecard gross already margins. record our at a on core revenue metrics, of touched we've

have million adjusted is our availability the which As freight I included materials. $X.X EBITDA, primarily reflected return in Due shipping delays, expense. to to invest quarter ensure investment in we timely of higher higher to of opportunities, global mentioned expense additional earlier, continued in air due operating to

EBITDA previously the deposition we this successfully on to $XXX $XXX.X million mentioned our to debt expected operating the million to efforts below $XX adjusted our to coming year-end. quarters. we focus $XX of expense. due XXXX, year, Subsequent convert reduced reducing million which minus The We of final the convertible increased is previously minus offering, end decreased in did. million from by communicated $XX.X at million, legacy the primarily to For to

Let's to move XX. slide

have to goals. we lot do work to a achieve our As of always,

has for been forward macro Amyris geopolitical a including expect of factors path the environment, another in number year despite the clearer, growth. as inflation exceptional have to instability, it we and However, never to relates

technology from John? critical will which our to strategic million. base platform, today. the has XX% revenue our demand least million achieve brands new revenue revenue the to Continue you Lab-to-Market of from remarks our and technology expect XX% is of transactions $XX plant XXXX our for consumer increase earn-out access at our ingredients, by growth listening before in $XX result in by of all we to our John more manufactured first line concluding As to be open to for XXX% expected million we XXXX of served for $XX questions. mass, XXXX. from growth access Thank

John Melo

for you, XXXX Thank a Han. was a and year Amyris off to solid XXXX start. great Great. is

next are you please? really part Operator, and We what for thank do. the can all please for looking comes forward you line to of being turn Q&A we what to want

Operator

to the question-and-answer session. begin one time, now this [Operator pause that yourself ask roster. will At one to Instructions] please We will momentarily we follow-up. and you We our question limit assemble

ahead. Rusch first The Colin Please question from comes Oppenheimer. with go

Colin Rusch

John, to much, I your about just the licensing more guys. bit little so model. comments get around Thanks wanted information a

and like You in talked tone the engage sounds and little about in agreements. in it interest development molecules bit of willingness past, to those the pipeline sorts the development your around of changing a is

moving if around about away add still more the thinking are about it products little So and guys to you focus just you that think that model curious hybrid the licensing bit or market? model, some bringing is from of a guys

John Melo

being Good thank for you call. the Colin and on

It's to expectation same, just of more right? more think I really our the focused. continue is

basically it's relationship world to we Typically global deepening focused pipeline right. leaders, and market with much find than get great We've We Our can our been. and to identify leaders. molecules us. bigger grown quickly. don't much target We pipeline we find has we're molecules. they gotten startups that don't more We fund work a with startups really go

portfolio from now medium-term we the less seeing the more is product get that partners. molecules three scale, these we partnerships, take licensing then partners And come with that to standpoint, we're to or we but has Colin. to typically break more years a model, quick long-term, the and market. deep more from model in monetization we a I a we'll -- like standpoint, only and long-term can molecules the in continue get expect portfolio then call revenue partners that's and capture develop that's The molecules value year we what to a with long-term wins year somewhat that make what market the these we we balanced where to or in might take the of do Our or from in molecule new collaboration make evolution guess we through

I as So more a portfolio, don't licensing don't our -- we've see model. than with revenue huge in other we the been grow little a where I difference

Colin Rusch

activity what But you like know, assume processing of the and how there's like, of sort molecule and And I vaccine guess functionality That's things appreciate in around capacity lot obviously got for and the that the pipeline opportunity? the some super I helpful. then, you some mature guys in it of of highlighting that the how that that's and those scaling. CBG for talked for curious, formulations formulation I mature a this happening past at adjuvant you looks obscures these I'm about for point? are

John Melo

Yeah.

you have penetration formulations. take the And have we with CBG Let's with been us that – We to have developed. actually can the in doing well. CBG. as in formulations. we've retailers, Colin two very ones some CBG deepen several expect, both the the the we've we of go several pipeline. can developed partnerships brand market But CBG, formulas our a the imagine, and And with The now expect potential examples more than we we have performing in have the imagine now different retailers and CBG obviously, to our brands category we development you more few really in across across cannabinoids

and we're as in the I'd as then squalene it the comes it go an vaccine cannabinoids gut say We've comes we at space, we in use So and our in got And bio haven't our When that, brands mature own just across we learning that a several that think really vaccines the with in lot, people with it folks CBG, minor that have a the into obviously finished with and wellness opportunity our into in of pipeline. scaling with have – Seattle, beyond applications squalene, entered to of additional But and really can significant adjuvant, we immunity ingestible – right? formulas XXXX, up that relationships as friends our in microbiome. a and the use. we to our for little We major beyond force help mind in different, when developing EDRi. fourth the quarter. expanding

We been have table we that significant but gone discussions proposals have in have not sheets, and on the yet term far.

brands a what we out helps hope our formulations, already from new given or of platform we sense for the of have XXXX brands most So that that and or our about you when have think either in rest portfolio, coming and we're as you that molecules have, launching. fermentation, molecules

we're in that's So – that scaling. that's molecules with where we are – where we're going

Colin Rusch

Thanks so much.

Operator

ahead. go from question comes Dan Brennan Cowen. with The Please next

Dan Brennan

a fit? Great. of revenue know for give we the cuts you you gave the a can of taking Maybe couple level you're we – the could to? consumer on just growth so But make kind pointing $X XXXX us the of tech. guys. first us range then core doubling and with the just questions Thanks and sure Just thanks for a where one, guidance kind

John Melo

Yeah. I that. mean, – take Han Han will

Han Kieftenbeld

Sure.

XXXX So you million asking if year about full XX question. think so. the off thanks for actually it's keying actual. not Consumer, of we're complicated, Dan, Well, the that

XXX get then range. And that will So then the you range, to of right. – get kind that number, the range. XXX Then off your key us two if XXX to access, XX% core technology total combined somewhere is you the XX% in on in your and

XX quantified you described. will me And we – year that we booked. technology that, does access me let Now again, include earn-outs remind for let an million that the the be at estimated

booked think in the So, will quarter. if its about phasing entirety that fourth you in be

fit as think in numbers the So that's mind together. about to that Does another make sense? keep just you one how

Dan Brennan

the All guys. sense you of and give you've key of a of And launches, growth of could there then the the right, brands, got kind for Yes. new consumer the stores. legacy experience just plus, XXX% drivers then you us the maybe guys on obviously

build how that give a growth. to sense we the Just plus of XXX think about percent us up

John Melo

And you think going million XXX about to Sure. legacy drivers combination Biossance Purecane perspective. mass doing being from I'll in brands a consumer, -- where and take the look as again, to Dan for just of XXXX. on obviously extremely and When that it Pipette, XXX million summarize and at at Han’s the that and majority range point the our Biossance well. perspective, when we're you the as look revenue are

revenue the in of of the brands added brands think the everything brands which and in and And brands. brands year as to the about be think else XXX menopause north really we combined Inc. about right adding being for being JVN in million of think new as you could million portfolio -- the of doing about new category that Costa, is last the biggest, and launched then the combination full-year came Think that will million XX XX menopause So legacy the in Brazil, of Rose XXXX. stuff in XX the that those we're -- to then north and category XXXX,

North are significant strongest sense the a American The magnitude. drivers our underneath seeing actually I where kind market really gives North of you one American hope and And that market. So that the is then acceleration. of we're market growth number

brands. the second, products, -- being last think – UK one Europe growth driver growth first, European new international the about is really And the each -- second driver expansion led brand Europe and of new Brazil continent. third, least, to by but biggest added products China The not and fourth current the brands then

thinking So layers. about I in Dan hope the that helps

Dan Brennan

terms this pressure Yes, just stock, one looks undue has guidance growth business supply -- cushion of strong there on the is is other target is and when if it's think past but some Thank about kind maybe Is think us like here, lot the XXXX for a past of no, and -- goals that growth lot just sense about caused, wondering has like sense opportunity And we have look you chain -- baked the a I'm like so been the of on guys the there's volatility, manufacturing. ahead as here. this the mind guidance kind don't been experiences you of the philosophy, how Looks give we you there in cylinders a of for just fixed the XXXX like the guidance. the then you of ahead, of we had. it's Yet for sure. a seems firing just which

John Melo

differences XXXX. into coming big Two, Yes.

is, the is in that sometimes transactions quarter first not hit the The core, by actually don't. sometimes the and driven guidance growth

that of go expect our just and we've is growth, really transactions by ingredients contracted a on as So based as of, a you result brands and a dramatically market solid, underlying underpinned quarter-on-quarter it's by in XXXX during our kind done based underpinned could guidance changing kind different already. our through of point one, lot what activity fully did see, the That’s we we that's a consistent on portfolio brands the XXXX.

have we in so think I quite can the thing you bit our a a you learn times, quickly, cushion is few imagine second guidance. burn of you if

technology we -- but progressive consistent number delivering could or running in above you'll XXX% on ourselves, than we've XXX% first was axis, everything control range right? the ingredients to we're growth been market, XX% which in as is we take at, about expect that's that simple we're again. of talk currently and the that the as on see it growth the pretty then coming actual XX% can out Our us quarter number the and why we significantly focus the go we and as to and than about XXX% that's start consumer and things talk of wrong math at doing consumer growth actually that to because the on much more to do out launching ingredients then go the We new solid, growth. then get new a in better we're And the the

as So, currently helps where the you give thought that we I hope how color about to we for are some year.

Dan Brennan

Thank guys. that's Yes, great, you John.

Operator

ahead. go comes Laurence Jefferies. question next The with Please from Alexander

Laurence Alexander

on you questions. detail is give you and needs two an about three to bit Two next And secondly, say how more a CapEx the SG&A over give years? doing? morning. your European little Good Can update the thinking on can

John Melo

second and on the first to good the I'll the part and take Lawrence. your OpEx Han, I'll part that voice you hear Lawrence. pass Great, question to of

solid $X XXX% into want growth XXX% again cautious brand so doing a to where we old maturity we and do actually not in I be here. over years that it's is zero that think lot the know think and XXXX, lot with investment Han, materiality categories, brand are that or this million But Purecane, adding also level marks. year significant in we're of to three our a into take It's in better buy investment of very a expect the and not I'd a we're to you right? the or I natural another sweetener, think then it's from channel OpEx -- actually we'll well of I retail, we expanding calorie On a the that's you mix now going significantly putting a brand have growth, XXXX, but growth, of $X other of revenue kind that a to Purecane. want people growth mass changing which brand relative and where to million I putting the It's significant So, standpoint, It's some now. year question? well.

Han Kieftenbeld

Sure, I do.

So, had as convertible the a the we had I visual to good the think it that we Lawrence, relates in -- we on actually note. discussed when -- investments,

in said important Bonita, with we that some about of talk speak as our running our we Reno course, we investments as in have where capability. R&D the and to -- here, also Barra first projects but we want just ahead, CapEx looked the facility, So,

had said of, we facility or kind some related discretionary capability, to $XXX about ring-fenced complimentary, million ERP of do with The well we out thought still amounts at of other projects a that the that Reno R&D about that facility, that's was supply then we major it, how -- we in consumer are that's of chain. and kind time of Bonita would to certainly around infrastructure, million lay technology, the Barra also then because around how think these a of upgrades way on million manufacturing XX and we in the And So, majority upgrades. $XX course. that and of bucket M&A some including opportunities. kind That's smaller we the around and is in

an increases it three support the thinking relates have while a upcoming you first in the What SG&A, the to I another course when We’ll perspective the marketing growth -- that alluded some it financial to I the coming this notes John are his we in deck As of that the half we're some brands commitments his as expense and out, in put we had year. prepared into and fold is and we've launches, lot may think, certainly somewhat because and say we structure to remarks. made in to OpEx of comment the investments from in selling have related recently also the seen of release have some launches. and brands with of in the the that

Reno that reason certainly concentrated second of also expect take that shipping put not of cost setting to And a then we half. marketing we there a be and in that'll advantage and and is but to lighten still some too. fulfillment concentrated half expense activity. just the certainly to other first more So up support more with is to inside the in And effort expect per se, reduce the

thinking know, framework perspective, of, we're you CapEx kind from overall about and that's OpEx. an So how

Laurence Alexander

you. Thank

Operator

question with Please Harsha HSBC. next comes go ahead. from Pappu The

Harsha Pappu

taking Hi, my for Yeah. you guys. questions. Thank

ones of you in bit detail I Just on give One us a a quick may. more Bonita. Barra could the little ramp couple if up

come when contingent you And there's your revenue rates said guidance technology certain XX% to operating hit in on environment think, on by that's you. is You we a operating commercial [indiscernible]. and there start expect second is one have I in [indiscernible]? I rate number, certain improvements QX true? production optimal action numbers Thank And a gross margin

John Melo

Very good.

that take I'll think I on Bonita. Barra

right We'll key and milestones be the carnosine, with second two exception with during the which making complete start-up plant we plant quarter. the supplying product shipping the continue of out early by is be DSM. to first start up of second from commissioning, third the in quarter the should to So the quarter. expect fully plant and most And that running will of of ingredients come this which our brought the and out plant actually

commissioning, are third everything do assumes for We the we better most product And a scale said could not beginning it that's our full So million quarter. other obviously pieces. gross if margin as that that question two I those what production, the shipping helps expect major right? of again, plant of sure goes there's up. part from relates out second ingredients we That around not want the your about $XX than perfect. of sure to benefit. impact, and coming But ingredient I'm the which I get pick make that didn't to

Harsha Pappu

I is the know it – one dependent content or -- margin. the marble, a assumption embedded helpful. on revenue – all there just one guidance in just that’s very And is there new is

John Melo

working obviously Spanish And imagine, all running is It's Spanish not energy we've up, very especially not very mainly It out. margin. then with plants, been our with DSM efficient The plant plant costs rates, closely as And is with because you plant, all Europe very and us. all partnered a going can in clarification. great hard party third for energy

So possible. is impact, impact. about third whole is Bonita about get -- we revenue party, startup, Spain get not all focus that out And margin of as is Barra as the really are of out quickly which

Harsha Pappu

I year technology year, number helpful. Did Thanks. you million you cost, XX% includes shift This one – and are or on this correctly? am over that XX% doing XX is number. out earn very see the fighting the Very out you flat the access same quick to for not revenue turning by

John Melo

that for Its with had earnings ingredients in we're deal right, actually and adjusting parts, arrangements that this the change the the licensed moving actually we -- back DSM. the we because the are there we for not revenue we made in licensing had,

we're seeing of we Squalane, are what there's transferred strong very exactly we growth piece DSM. in The at actually strong over haven't very expected. We're growing actual in expected volumes a very because seeing So actually strong we growth the to Ambrox We're and Squalane. seeing growth growth vanillin. rate beyond in we adjusted, same that

publicly underlying DSM with we the revenue year. the rate. rate deal expressing growing revenue, But last has volume. an based So volumes on a the at And that growth did the is adjustment are high not we're

the that If you think ingredients about control we ourselves.

than increasing HemiSqualane revenue that is we XX% through and Squalane, So sell more Aprinnova, this the year. stuff

we just add will I color. we than the have So Like growing ourselves that. to out you that control new obviously to stuff XX%, coming more wanted give and ingredients sell

And robust we We on is growth, goods for deliver total transaction that actually then year take then the all will factory with volumes giving on DSM. have of about which us. pretty the based are a and utilization cost have us down year that

Han Kieftenbeld

a I a can ingredients, see bit I included, product to think Perhaps, if little intrinsic John more in to growth around with if underlying really were the do licenses you number give there just have portfolio. the the John, for comment you continued because growth one slide back or XXXX. Yeah. color, well, you'll And headed it is technology number. reference where is it described right. We And of XX, had to actually, access the

to immunity, what what year bio, did with with with the nerve in the million we XX million for quarter, do DSM. that XX did So we was the

over year gets underlying you to assumed. that so product growth, And speak. as product there year ingredient, so to the intrinsic described, flow, And John is

Harsha Pappu

That’s Thank very helpful. you.

Operator

Please next [Operator from go ahead. Joshi with comes The question Wainwright. H.C. Sameer the Instructions]

Sameer Joshi

Thanks Thanks, Yes. question. taking John. my Han. for Thanks,

be should or looking from And other basis, roughly should question number? The using between us on a gross be margins first two? targeted actual longer core are were help gross non-GAAP still gross the at business margins X%, core the gap the is some the XX% about margins we Can GAAP then, margin. around The these XX%. whereas you at we term understand gross

John Melo

second the year. first the part. you take Han we part, what of I'll take about And especially second then, thinking get the be to half I'll the let, should as

on to you the if want Han, the first GAAP basis? So reported take part, on what's

Han Kieftenbeld

just Sameer the other core remind What the was Hey, me, business, on right? … XX% Certainly. Yeah. quickly you said

Sameer Joshi

Yeah.

Han Kieftenbeld

quarters? …number your

Sameer Joshi

margin. revenues roughly product and was $XX.X. $XX.X X% cost gross because that think calculated X% sold roughly were your of The I I the as

Han Kieftenbeld

right. All

in made just a think moment I things was at I in the in it the business around some And least quarter. look, there's prepared So couple about. comments I performing the mentioned core a to XX% The remarks. think here to ago, of

So and access that's combined. of technology sum the consumer

of kind actually one-off one-off will, a any or to items. excludes, transactions from year if that impact XX% compares you ago quarter. So other That

a it we lot was three year-over-year So of in there's a And percentage course that point on, going that. improvement have.

We mix. have a new

into If you quarter, it. we there got brand product given sold have the at and mix. access a get will, And we coming We you In got consumer, piece, got channel also, new in mix mix. on in terms brands we available then capacities look of technology based if ingredients whatnot. what

there include you'll in Then of the because the business, So direct are here a lastly, margin, financial I the see there's the And a if here. don't take core But statements, as which as the parts a away then moving there's cost improvement I on that the dues key alluded look come to of of some to some year-over-year. was I kind quite and exactly, gap said, goods statements as of you other freight earlier. also we out product particularly point that. percentage here. again, sold, XXk., at of the part of it That's bit a three so lastly, number of point point quantifying would without to you expenses

suppress certainly with to will given But year-over-year. you you performance For perhaps XXk example, again, logistical will is a and what at to gap margin kind of have look as air for just perspective. as reference know margins the analysis. that But and delays you you those of from product to improved direct that's pure do the some freight

Sameer Joshi

second the then, And the question about… you think of scenario, part if

Han Kieftenbeld

Yeah.

Sameer Joshi

coming direct $XX to margin. second we the Aprinnova the of versus million, about tech ingredients think you dollars been improvement revenue. of business … million the $XX about XX% margin gross collaborations around in licenses that million from that in in think gross expect Bonita And way they there's XXXX, the when the level and half. is I'd what's out. side, $XX And the Barra about access margin the $XX on the million earnout, that There's the hit coming from control gross that from of then and comes licensed there's about

the manufacturing consumer total, and up the about XX% we gross points tech And from continue million opportunity to and gross side. running our $XXX supply XXX around for chain see there's as and obviously then we access. get in there's half the to then which, an side for the So expanding coming consumer XX% in robust by second basis own margin in margins, very

on out look how and again, our Barra Bonita consumer into and that's side. the of improvement XXXX going significant So manufacturing the into coming own numbers the expansion

Sameer Joshi

it. Got

only, Brazil a on XXX subsequent it that be basis improvement, the Just half the the or going is second years? higher facility, is in to clarification point for

John Melo

another again, it's points would the I say, in higher from is also the building as in And Yes. manufacturing and subsequent contract expansion for specifically European consumer consumer products. expect or out XXX well so consumer on you'd currently Brazilian Brazil as a years. have. about basis as the XX in of about and it's that shipments site of second be we're to the we XXX manufacturing, it points products is half, sites basis that really But move Reno lot we the

shift. manufacturing. yet, capacity Reno, units it are we a actually million public Brazilian about on Reno of site units million -- scale put The think will not a will year second And XX we So have then one is, large XX the way a actually year of million shift. XX actually in out year one but only the units a haven't but capacity that to have a on on

our to points So can lead go will as a And be lowest we footprint quick make own XXX little we able and XXXX. manufacturing producing significantly are better support products. be beyond consumer sure cost basis and expanding of that our we than to consumer to

Sameer Joshi

expansion and in you third Brazil. pointed whereas exposure roles. China Both just comment lists UK as in mentioned Got China out new it. have that? Can And on China, after then have appointments leadership the you or the leaders been you your international to

John Melo

site channel up. NK, got we're really have we've growing we've in I Brazil where rapidly and got same going Harrods. structure our It's we well great there. Space The are. direct-to-consumer own got got UK, established we've Selfridges, are mean, We've we the thing,

own We in store have our London.

at lot where cross a the because border in have in expanding policy other And the So in Superordinary. a Sephora, happening market. really enabled but partner China those We're animal being of in just structure change in China, channels with a our moving channel think place us are around we doing much structure Chinese testing, already been and the we're it's the more there's deeper selling to really in much direct currently with In about and retail China. into business looking markets.

one. Biossance think fourth So that's in you I'll quarter number shipped over for we I alone well into why, alone, it's million mean, I not the X.X tell China.

of into have XXXX, in as work there. the kind be advantage getting as fastest potential So, business, and part part in we want to Brazilian of I Chinese just it's to right? growing it the but market not rapidly going the biggest international that So, put business and is it do channel set a lot up I small well do the it us UK, didn't market. think of with one it market is our more our our growing Squalane’s have to the we market, number because the see giving ingredients. actually has as a structure the and we to

Sameer Joshi

it. Got John. Thanks,

John Melo

Sameer. Thanks,

Operator

JPMorgan. go comes next from Please The question ahead. with Rachel Vatnsdal

Rachel Vatnsdal

thanks taking for guys, Hey the questions.

can on with mentioned you could project when to also then give this you So the during venture first us when first you then complete you're remarks and trials expect that be up human the on. that for you is prepared timeline on RNA the ImmunityBio, the market? just joint And working latest

applications could and So outside of there? opportunity about talk potential you COVID

John Melo

Sure.

first of on Now, and the much second not Rachel the part probably probably then a part. more as in that little

trials the on clinical the part, So first we approved. have

have. we moving We to have data completed we'd And expect on based the into are trials all trials.

trials. know done We in the well, job expect be expect vaccines providing but progress. if doing the thorough of all year. do to a vaccine, commercially supplying the then, to everybody's it's done. goes obviously, be current we'd the successful, we expect good That's safe And second the not half it until and I what to on And

that therapies, on there's Rachel. some is trials benefiting Day very, specifically second there very are focused give and our that, Regarding an we'd helps other dive us during we a technology now. actually oncology sometime really I'll both Investor quarter, on the on in I and super for in advance IDRI that and focused of Hope an understand it the ImmunityBio oncology are the much SSRNA CEO several that the have we license we're where are expectation we chairman from the COVID relates therapies on applications applications, we'll have end against of deeper focuses all that better helping from in the think the so portfolio. with to if doing and investors technology to for and My other those that interesting specifically leave on and

Rachel Vatnsdal

strategy? then great capital you balancing of And in minute talking great. also then about that's brands last Yeah, market. with house a in partnering a done for players job existing and spend growing deployment your Can one We've me. the M&A and just

of Thanks. So, would you be portfolio and targeting thinking well? with really can you you're as and what M&A that complementing size how then consumer deals talk about, the about just

John Melo

been have a Sure, a be that right? bench lot Really support look, M&A acquiring one Aqua I we've that, been talent of we've able rapidly what growing has to growth. -- as ensure to deep in hire, done and we

deployment, have acquisitions. you better performed our would you really homegrown significantly I than what If tell look about capital think our is about, brands

though I was Brazil, actually well. by amazing it hire. even an that's think was the acquisition, exception people. would brand it that's performing It's Costa an loved aqua very And an be

of you our homegrown can is So expect brands. what more

two right. Retailers as consumers want you'll And not chain, you'll I announce three see the the to partnering to us their brands sustainability directly. in go retailers opportunities. global year will some have this in value major past amazing Rachel, see think stepping the us retailers the what thing with And their did partnering think see, with actually new think they you'll major to building loved be that and to other down I in is homegrown category, but I us bring beauty deeper shelves participate.

So I I that's guide. what, acquisitions. would see don't doing brand us major

I think, homegrown. a pipeline of we significant have

to categories we you'll in and some us to faster consumers. partnering to of two and three like with play make then see homegrown retailers we'd more more addition to as of efficient acquire see actually You'll get brands our announcements for capital market these

Rachel Vatnsdal

really Thank you. Great. helpful. That's

John Melo

Rachel. Thanks,

Operator

Dayal Our final H.C. question with go ahead. today comes Please from Amit Wainwright.

Amit Dayal

about for set, these taking my either getting would increasing questions. opportunity Thank is more competitive Hey, everyone. good could the morning, of of new new you. Thanks your John, environment, entrants? Any talk be How or sort players competitive, the in? on coming color given you that helpful. sort

John Melo

doing actually and the there Hey, all development focus technology. in brands But we major us. We're Amit, Lab-to-Market that their big with sector. deliver the brands Again, you, the competing are best big maybe deal and relationships and that with anybody on with retailers, and the the consumer you have since like are being have could they're coming them programs. help market time. have seeing clean that with ours lead portfolio. space, category, And tell mostly me launched where partnering a market nobody they we with, There's major who for in are sustainability I'll deepening don't performance the they're with growth in our leaders is not seeking new entrants, leaders these competitors to we

specifically? so competitors, to, think could to that referring about are So who you respond when you them I

Amit Dayal

but the prove entering are maybe focused are have have on starting fermentation are, starting side, out are this [ph] look today You players you etcetera, technology who the market. to to you have as and DNA into who renewable are space, they fuel guys ingredient other space, this

opportunity margin things brewing, competition increasing, there they the So it is given this of looks haven't yet, maybe like set. commercial hit scale profile are the but

seeing how differentiate and to wondering you you those. what Just are with continue

John Melo

helps. think differentiate we you. I by execute. That Amit. Look, it, Thank Got

It's the the world. flexibility. factory a lot advanced We have got in most of

middle see I factory. construction we around think, you'll project that a kicking I and that to off announced really stable call expand footprint, already of second project that chain supply a this year. production And we're support and we growing as in And start fast our December, in are have actually that as we on can could right. so growth, designing the our

execution is differentiate. how So we

the months doing first changed, I generation, visit always not think, and secondly, labs we're your people, way the you really next after like, science has XX if wrong. tell our building something's the out I visit

processes. imagine can next the you of in and now, tools new bioengineering, So new are right the we investing generation

up our been that's trying how know a And scale while there's to We're done, success. three on like large everyone's so has that's year. from process molecules that next molecules nobody to scale it five up, development, actually And results, new production, And could to the evolving. engineering, with I bioengineering commercial doing in and then see actually you already platform. already catch we're

right XX to of deliver ahead is, and invest all And that able we're and down now, and ahead market. into right an of up so our not execution, then real from say we're I'd the generation being now. technology we're really probably is, on next not say we're to engineering running my barrel scale just And DNA is years focus best competition. competitors could So of always our in assessment products I

Amit Dayal

Understood, John. Appreciate it. you. Thank

Operator

the over I conference for remarks. turn to any question-and-answer John Melo would back This our session. concludes closing like to

John Melo

to we Great, question, Relations Hey, and and Betsy. follow-up I'd thank today in -- interest continued please Investor like to If we with you did joining to us with you make call. our being response. back a team. this your not your everyone for our back for get get And thank sure for operator we'll support.

Thanks, we of in like and what to-date. focused one right Our off, years really prayers best now. as happening are start quarter staying obviously with Europe all looking everyone. that having And on our great a executing is

Operator

today's presentation. concluded. has conference attending The you now Thank for

You may now disconnect.

Amyris (AMRSQ) 1 Mar 222021 Q4 Earnings call transcript