AMRS - Earnings call transcript Q1 2022

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Operator

Welcome to the Amyris' First Quarter 2022 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

a non-GAAP and me website, your you that everyone and amyris.com with on the expense website the and presentation The non-GAAP not accompanying for Please us today were section discussions joining Executive slides the X-K SEC’s distributed the on revenue, current Good on press today's hear underlying for Reconciliations thank the measures furnished today. call and posted release With to financial financial in call, can operating available results convenience. GAAP the gross as this these our most to, including on this We President cash release. is today. but The today Officer. report of summary found to contained morning, limited website. comparable issued adjusted you press in respect Form financial release Investor are on John of Chief measures, on also EBITA. press Section, our note will is our measures in presentation as be sales well or the slides directly margin, Melo, of

based about events, we first forward-looking as market information opportunities otherwise. the goals including XXXX obligation and the growth With to I time-to-time future due our call turn filings contained Amyris call, disclaims Forward-Looking update over management's to milestones, future Commission, any Securities that, differ future or John. a new Exchange those in quarter Including materially from XXXX. These outlook John. as expectations, well on anticipated detailed with are uncertainties. our events information, future of weather current these results of as and strategic and XX-Q will result risks and will statements, for this the transactions Amyris' make to priorities, and in and circumstances including During and and events Amyris' Statements may for beyond, and actual statements other prospects.

John Melo

you for update you, operating asking our will will crude Thank business a an Q&A. provide are strategy Han update On our kill and and destroy on I animals forests eliminating we provide to focused to today. us morning, fully X financial Han we joining need Slide Thank now, and everyone. the on before good turn oil, chemistry. to to then use or make performance

supply We around reducing animal of harmful practices destruction are our agricultural stress chains preventing ecosystems the further planet. and of

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the examples disruption of few a across As delivering we the are world. deep

helping and all Our accelerating by powered every and as chemistry sustainable oil expanding in positive soar of caused growth of ingredients the consume effect technology significantly, sustainable a are by prices and clean, consumer be is they pioneering for The is network crude future. day. industrial more Amyris' demanding brands and our agents products change, us adoption consumers

wellness in and consumer planet. leading ingredients in compromise our the of are this are no for markets We our important health we the of fight And beauty, a fight power and brands. future to

world products as do. and solid We our with as many that around ingredients and million more already quarter. are We making the delivered first we to have much use XXX a consumers an impact

portion of those quarter. already following past in Slide by by led XX% important the launched year-over-year, increased record of from consumer X I'm on the along. a consumer Haircare you revenue $XX revenue our million growth revenue. for our JVN supported versus of core year brands, XX-months, XXX% Our delivering prior currently compromised an Brands

partners, We of globally. brands, expand accelerating as direct-to-consumer websites. new growth have consumer we that our is of XX% retail further our for of America. North XX% own revenue is is with add new entered grow a current revenue from consumer and consumer our from period exponential brands our

operate Our new Rose including this year the and over brands, Hair, cosmetics, for brands expected time, Inc. of JVN revenue. to generate that MenoLabs, will first EcoFab million are $XXX

focus into expansion international We expansion, the are across year, major later an Brazil in the entry UK, also and middle on this Germany. of with and Portugal a a market

our world's we incredible across and and for where In is opportunities the products to expansion want Walmart. wellness new brands, expect through of brands best deliver our technology. the to be revenue. significant another expected first Walmart's quarter in for retail developing landed strategic commitment of consumers two revenue what ingredient ship is is consumer around in significant is to fourth a and we fourth to over quarter quarter, performance of consumers. This and the brand leading And markets, revenue deliver through an have in validation our products sustainable, in retailers the Consumer our performing category times ingredient was This we revenue. of significant to also times addition partners the international by beauty are what opportunity, and brand to this the we sustainable five

expected to start on shipping We of be XX% at rate end expect as growth now we this in to from well the portfolio Our better starting Bonita. also over year, our while products XXX% revenue recognize to is we the have position that XX% is of set quarter a annual ingredient deliver start now ingredient growth the will to consumer portfolio the growth than delivering year. high to this be Barra we guided

our the we spend focused generates experiencing, are addition In growth and are returns. also to reducing it on significant our focusing where investment we strong

a MenoLabs built We year this Hair, Clean our that positive have JVN expected turn operating for new profit four Hair or to brands Biossance, are and contribution brand Walmart.

second access deliver year-over-year XX% Bonita million to demand stronger a and consumer at experienced positive that produced profit also once we Barra site. ingredients grew to we is start to bigger $XX plant meet that track this than quarter. contribution us delivery during starting manufacturing strategic reliance are in began during We in improvements to million ingredients challenge Bonita ingredients to fermentation keeping demand, in have they Bonita Both resilience to inventory, available on We capacity and investment our quarter. expect our products. revenue start this Technology half our the production received facilities. we for reduce producing quarter, fill our more not produced $X early later we the commercial An did in the We full critical represents product all due on for Barra third-party that all commissioning the ingredients fully shipped in This production, on margin manufacturing quarter. as to fermentation business costly product the of third-party consumer ingredients manufacturing year. products This deliver, We into consumer estimated be at the the manufacturing. debottlenecked a and available will substantial production order. second have scale at orders and Barra second comes and was the

manufacturing new of production Brazil. in are All facility acquired three our facilities to year. addition end commercial new Reno, are brand by full a In recently the at production in expected be consumer the we this constructing facility we of to

facility the have facility. and Reno consumer We manufacturing started already the at producing Brazilian consumer products

we also direct-to-consumer. through demand our sales of start to the the are of quarter continuing are second experience expanding We mix strong and from

and very We back new partner this experiencing strong consumer and are coming consumer points Sephora The the is in most are of quarter almost retail Pipettes the to traffic through shipping XX,XXX UK. stores. we Brazil, U.S. markets selling European through significant stores, our

We we quarter. direct-to-consumer be about reach we by the fourth million now business. three six at time visitors in monthly at monthly million are the visitors our expect And to

as second have deliver and expect the of we business wellness fastest beauty growing And consumer the We in cash world. the strong transition to the year. brands also built half this to health, we generation

acquired and the have we We capability need. built

We leading to and product and deliver have have brand model portfolio margins that at scale. a we better business consumer the the or has our in XX% potential operating consistently technology industry

of a can of reaching XX-months where structure. our we to scale deliver expected XX within revenue are margin We consistently

building We have have to what need transitioned from executing. we and

better brand our sales. and JVN much on JVN profitability the acquisition successful to-date, is in are of JVN one most We expected. brands done is XX-months commercial performing is The reach our to Haircare with of start phase. target our in we than the brands or is also investment portfolio. since less lowest

current Our of valuation Clean This are is and channel Haircare. brand with rate, is investment all million leader marketing a based $XXX about revenue structure in around make and partnership this We $X.X is developing we run team delivering our and launching gross on and annualized the that estimate the really is the appreciate brand the it million. margin. JVN in Jonathan a hard work to key it JVN

market. prestige have very fortunate are We beauty the achieved first to a in

the North skincare, formulations the We to and in America. brand fastest to clean of in is year-on-year chemistry. have and demonstrates the This science the growing at for technology cosmetics deliver company color care a deep and scale unprecedented and strong baby hair power single sustainable space continues and our its Biossance fastest is growth same skincare commitment growing at time. brands and care,

Walmart biotech middle America. quickly new in stores XX,XXX Our about X,XXX stores. brand the This over growing to North very shipping of also is and includes in

current and technology that demonstrates equity planet This on $X.X and consumers a our than based to billion for of value estimated around brands We have are on asset more Biossance significant channel disconnect is performing themselves incredible current rates, their health, margin JVN built equity healthier. run in making structure. best our use and the current alone value, current markets. have while the revenue enabling their

take will do core we technical, an driven our markets this Slide recently have and peer have on with innovation unique correlation by structure new to we that as closer is scalable and practical with opposed technology, the end to and but appear wellness technology all positioned platform and growth index. to companies working countless Amyris our in X. by continue A limited I'm biotechnology technologies end match profitability. steps immediate and markets we the ultimately are the product is sectors. leading have in who our end not the industrial capital taken group as IP disconnect and steps categories. been that product we consumer target tireless foster to efforts us, growth professionals the and we Underpinning so commercial where be to recognized market who commercialization. development, the continue tangible traded to growth biotechnology similar We to to the beauty capital and built of benefit more incredible This are kind to our outperformed will well The and appropriate powered self year-to-date, now fund have growth high from on

have we steps have costly expanded, taken As chain. reduce integrate and grown our components of to on our critical reliance third-parties also and we vertically supply

precision Barra reduce our substantial with and are As cash Combined new taking and our optimized, actions footprint, are costs, fulfillment run in from and to our asset and chain generation we reduce online, reduce to and consumer fermentation, we operating comes Bonita our cash business. scaled manufacturing plant unlock next margins have important needed distribution improve and costs manufacturing to centers supply our base. our opportunity

cash expect in continue stated million to the of we the is year, a over ingredients, this that Evidencing This transaction we two deliver $XXX of we we heavier what the to half. continue driven second end of of proceeds of the our base. This reduced rights technology the with in quality by at and year. the acid the depth half investment a year which exceptional similar As first you further as look expected DSM of Slide when these impact last investment start to marketing of is manufacturer heavy in expect burn platform portfolio scalable is limited with from X, revenue will year to the breath. be plan to in the quarter, our positive discussions and with ingredients the long-term. will fourth transaction we from including in for exclude active CapEx our brands. are to and cash of licensing operations optimize new the We

brands. our in Educating products X,XXX harvest not today. planet, to enough. accelerate connecting okay scorecard we our as well the belief using world there purpose We are a We proprietary atmosphere clean at important Approximately their uniquely performance our Beauty builder continue believe Underpinning relentlessly most with consumers the and are with it the around the can't is core with beauty number consumer The share of to out, doing just the we brands is all prioritize prices. as our one the opportunities well. these for our and X. our power and ingredients. brands is turns Slide and good efforts. Clean reasonable of desire This exceptional and products that partners of environment isn't no world are But really and positioned to decarburization, customers we consequence. and are of

Our opportunities brands continue category feedback Slide of exceptional launch plan as and time, JVN such time recognized different on accelerate access distribution are first future. well we as offering routinely EcoFabulous, to this consumers launch we the Amyris with these recognition, new to lowest and to named to the for gifted of with focused to the sustainable Channel this will a beauty sale Walmart Naomi wellness growing Inc. we invest have brands. QX Stripes, from one relationships we access Around the possible clean, year, X. and day fastest timeline on receive this Biossance, Gen and partners, in consumers the meaningful that leaders Rose (Ph) success the Capitalizing to these from is can in as expect and [Fore] price at a impact menopause unique a Watts. as give the partnership In products same brand consumers. cost. brands most a for established at great What point. is Z well

fronts working also on hard as many excellence. relates to are operational We it

shipping going will Bonita improved from We Bonita needed as expect are process we commissioning in much XX. at full critical this very Slide plant and well to costs. Barra the planned. start to products The mode commissioning Barra and quarter which is unit capacity be

community acquired seeking offers products a relief that is women offering of MenoLabs quarter for led and the app a the real delivering their menopause to resources. and education online and during we named of their founder During Not brand MenoLabs life, solutions stage sense in only consumers based through perimenopause.

revenue of fastest growing brands, consumers MenoLabs to in underserved more for category Amyris' capabilities in This this formulation sharply and one to and proven the the With and wellness. is expand develop grow benefit opportunity the of enhanced distribution, meaningful. is categories serve health

We expect category in this not in to menopause the during We $XX over million category did participate deliver XXXX. XXXX. in

our focused have consumer has XX-months, past rate which the and for on consumer been Over acquiring portfolio, we paved incubating our way current in the of investing growth.

in serve, and consumer not further a brands in categories the We the leading plan have of built on portfolio do we acquisitions near-term.

to the execution, technology. plant and building creation we impact must for while destiny, that We This development. to are plant that process are sweat and improve model world making deliver These technology, great fermentation to Barra production our leading now tears with and of to increasing brands the portfolio we will transitioning blood, homegrown. capacity. management in our and core excel scaling the a our our control focus leading are manufacturing of manufacturing at order and is lower efficiency JVN have learned cost building synthetic markets. example facility in precision value you through biggest Operationally, greatly brand positive with and your this at commercialize sustainability biology and tangible, planet. Bonita a on margins our Recently, barriers much fermentation commissioning the Brazil, of began industrial our

to view We our anyone YouTube video it. the plant construction have urge on curious overview and I providing progress minute posted a Amyris video. an our about of its six

remarks Let Han me financial results. for now turn covering Han. to our

Han Kieftenbeld

John. Thanks,

Consistent increased Slide largely consumer to to $XX.X XX. of turn our Let's core revenue expectations, million. record with year-over-year, due XX% revenue our

day. category leadership and momentum built consumer and Our brands every further each substantial have established

industrial macroeconomic made have would Our our better time integration be couldn't in the of better investments and given at a backdrop. in point current I made chain been supply

the and globally, we extremely the is Given of our control important are to it of have volatility distribution witnessing technology IP.

revenue, to our million, revenue items consumer As fermentation which transactions and and XX. record $XX.X consumer the expand $XX.X to market consumer which we and revenue, quarter Core we XX% XXX% Slide million, XX% of XXXX. of technology had our revenue $XX.X products one included access plant to increased fulfillment of year. million, will production, to degree to strategic of other a from and Core of prior centers Please includes the when past. their and that turn have revenue excludes increased increased technology lab which control first access versus haven't compared in

is our experiencing growth brands, an accident. revenue between is we balanced Rose received of consumer Our The JVN and established more momentum well prepaid Biossance our are very not new and launches and Inc.

from originated quarter is consumers first compromise don't XX% to exceptional seeking are XX% originated and It to sustainable makes was online prior choose similar consisting retail a education that revenue performance. products providing from believe sales. are to revenue of of Approximately originated This XX% America. platforms, consumer e–commerce of formulation on We consumer from while in and North and store from they who environmentally our have brand responsibility year. very channel direct-to-consumer. the

internationally is began said, investment away are quarter. the Barra in from the alleviated and scale third-party expected Current constraints third-party of which sources. sourced current supply strategic capacity in heavy Bonita, squealing. to demand a production plant be oil sustainably commissioning manufacturing fragrances John We constraints we to sales for the was this driven XXXX. shift of earn-out Brazil. capacity large our for crude and to million growth offset Europe, opportunity completed due $X.X see XX% footprint sweetener growth related quarter out UK flavors our by build growth and strategic the as are to ingredients the partly access F&F transaction continental in of expanding DSM which This in first the and Technology and contract fermentation and squealing by by demand we significant in Ingredients as ingredients was we

XX. to Let's move Slide

XX% margin in margin XXXX of XX% This million of non-GAAP gross gross quarter to the core first $XX.X revenue. our an increase XX% to was dollars prior year mix. or the XX% of is Our brand resulting new quarter and was which Consumer channel of compares first growth consumer primarily from to the compared quarter brands. margin due

as impacted simplification. in approximately We revenue in contract aforementioned versus product contract XX% and gross margins the the a were Ingredient of prior Technology half year. revenue of to and affecting capacity result production Squalane XX% footprint constraints second recorded margin of expect improvement the particularly Squalane. a XX% manufacturing, access by heavy margin

from second expect online. Barra We XX% coming the in to XX% half Bonita margin improvement to

in so grow, brands. and both a down cost. next $XXX.X launched included QX will When more one-off brands exclude strategic on the million our newly EBITDA quarter our the As adjusted revenue. regarding slide. QX we air I make in was few expense $XX.X due too $XXX.X to investments expense sunny shipping of associated legacy one EBITDA has million XXXX comments adjusted of million, primarily transaction and operating these higher offs, this expense

We have reflected adjusted our is in invest opportunities, continued return EBITDA. which to high in

business the arrive our of first existing products growth the costs elevated. third-party with our the remained during on to relationships and associated ensuring committed are time with We and quarter new

see half second to revenue. leverage Slide in to the expect of XX. improved on the back cost increased turn Please We

today people growth million. fulfillment to driven in is XX.X are and of advertising, total and include three and increase a people million XX from a operating brand $XX a million $XXX.X compared primarily brands We commissioning due acquisitions was consumer by investment organic $XX of for increased expense air order increase intermediate expense brands freight both the million, paid expense media of in of increased Non a cash sold the cost $XX and Barra expense Bonita mostly customers. by increased year-ago, headcount, driven of our and increased comparatively to combination packaging our right to for to costs goods the ensure This freight get driven supply expense lastly, by at your pre travel inbound were products COVID-XX. million. continued right prior at in Other shipping activity time low tune to components, and to the place our and operating

we the million is elevated quarter of the cash $XXX adjusted use result EBITDA. a was our of total which also As related use elevated, our of of million in $XXX to expense,

working Additionally, we total build XX of a million. capital for

Bonita XX airfreight of temporary $XX ongoing for expense a predominantly million, part expense also as consider Barra M&A as be that combined to total for of incurred not CapEx do well for cash one-time and of outlay. we million of XX We total a million

Let's move to XX. Slide

performance full and all wellness, reducing of the the the to higher current launch XXXX for financial reliance we ingredients. the Spending baby are health capacity new not addressed skincare the open of half has in unwilling categories. Thank along consumers we brands who second brands Based is QX are while outlook discretionary year, expect questions. be ingredients and harmful taking remarks millions hair the before to on listening from on needs reiterating of care on new Our environmentally compromise unsustainable in of with the consumers revenue rates. today. and you Bonita these clean in-house effect and of our end status on line Barra for full-year John. and John concluding for consumer

John Melo

Thank you, Han.

acquire sales will through goal existing these for create is chemistry through have options We platform of marketing better capital disrupt and operationally that and leveraging brands, well consumers. business our core the capacity, future and growth. plant investments in educate a substantially sustainable and and to performance as production investing deliver consumers startups expenditures through and opportunity to of sustainable been and durable, The as the

knock manage zero real, line of effects please rapid and the of the our open will our But to and for spending on business execute focused environment operational to laser we change. economic are The on We on the all Ukraine, human meet very will front in operating our conflict rights opportunities in accordingly. and continue our the by plans inflation Q&A. policies, crisis and we external Danielle, created will COVID environment revise are us China's plan. we

Operator

We Colin the from comes go from Rusch question first Instructions] [Operator Oppenheimer. Please session. question-and-answer The will now begin ahead.

Colin Rusch

guys. Thanks so much

just obviously, have, guys capitalized there that we revenue sense combined that, in a what a get are of to you can terms impacts point? a would now capacity of and where feeling you the With is this mix now is give love at but of sense the for us organization capacity you the

John Melo

a those you And hope But are once what that to a key we look ingredient at the third-party. to They mean, on how Bonita you products that expect to gives you call. capacity sense, we is quarter, have enough capacity expect million some assets we of out the our we XXX Thanks investing to the I our revenue. be Barra ourselves. the production XX% think resilient and a consumer produce unique unique them our XX% capital ingredient side. and and about equipment XXX expect well million revenue about expect we Colin, assets, fourth of if think into by units year. And do And, would great renal meet I relates consumer, it I million consumer because our about have we fourth think consumer not all as it be products generate XX the year year, think capacity you produce some in of XX will our really our to to quarter for about we to about the that Look, that that met good the Bonita units to run over When we business be I have side manufacturing to what of we to can of own a capacity. again, that million a on it very expect capacity demands are to you XXX that our Barra enabler million year on is sense makes start, consumer ramps, demand. are there products, by a

think don't fermentation double to make the precision the were As to more a per ingredients current the level can Barra realizing out ability for ingredient and to the challenge performance than start fourth quarter more in we of mentioned, of Bonita. We as quarter expect ingredients to of have grow a that We access ingredients. result of just we capacity. revenue we

million around as year revenue So enabled of and Barra you cover XXX and out we facility. hundred million about a consumer revenue ingredient couple that to Bonita Brazilian of enabled by the can million Colin. by of somewhere of to Hope think year XXX it helps the XX% a Reno get a XX%

Colin Rusch

And we ongoing is then, super level terms the helpful. in Yes. talking just elevated that are just more of basis. the cash slightly I - operating expense, That the here some about curious the of bit of is going you as how about as global deem how that guys gets that out more to supply little overtime normalized? chain and is, temporal, balanced much come a of much an

John Melo

Yes.

to global chain And I and building significant Han expect all high and I as first me. around do to seasonably really that, second to about hard XX XX quarter into actually to quarter we the that, especially brands to have really and and in about just million lot you growth need there and specifically the Remember, half. to we million, we complexities of ensuring not we clarify that summarize million will number inventory, have is will costly, had is repeat. then components go the want come don't a coming are the think that think on correct supply is to I side. running a to of shipments. have XX is And of XX, that to quarter have where tried to of million, that saw million I XX to it XX quarter XX XX million, we now connected is actually There million cover manage, what sure on try and components they anything fourth is a new I'm back, he be. with those are very that in first that

plus brands we ensure well knowing current that over the to really then deliver the and new brands could new in combination revenue like of Again, for million JVN, expect Inc., a drive market our we XXX to that in significant consumer demand. seasonality MenoLabs fourth to market So the are inventory quarter quarter. meet build Rose we launching, in fourth

is I to any know -. that. Han want to if add that you So don’t clarification

Han Kieftenbeld

is that think I John. No, right,

Colin Rusch

lot a guys. Thanks Great.

Operator

from from Your next Please Cowen. Mah ahead. comes question Steven go

Steven Mah

taking for questions. thanks and Thanks the Great. operator

the On in have give with you discussions is molecules developed Are licensing color Amyris, haven't there mentioned. you these you disclosed, us? existing two at you you can ingredients, know are but that any

John Melo

would competitive disclose but will in For much, they current are I you rather production. reasons existing tell molecules not we and are they

Steven Mah

year it. and Then to is on seeing on channel. what and expect you trends a prior mix helpful. QX those the mentioned know, wanted year, from got you on stores what retail you to to and the the the new you balance retail. seeing questions up you are any similar could of channel are I experiential couple ask be call you are you do in you Hon, source? Okay, that mix - was but in that you channel a for guys Alright, update mentioned, impact what seeing prior the the us pop the

John Melo

Sure.

was two you let So me to try it take there. and embedded those, like questions in

and of just retail I we us one. the seeing do tell retail what expected. CEO Global And more the traffic first let's So right footprint conference is that across a at are Sephora’s was last industry the significant than just night. I you now beauty beauty can I'm for with CEO any

the we can the of seeing exactly Because goes has same have mean, market are the times we you you, is consumer it robust out and fast beauty now times retail sort doesn't across when is - in tell are simple in the happen in of now we or UK. But again, thing first history, right that there luxury at thrives. it I are in what a footprint. the everybody coming seeing right very same that happened point at buying I to seen seeing we this war, So is It COVID. the beauty. uncertainty, is that thing especially Brazil, look of it surprises actually

very consumer a again, robust So and retail.

alone. and point our come second the would in expect for are second at. we the in I retail we that mix mix, think around Walmart, are significant doors I like the mean, to we the said, I Look, between mix. is well during because brand Walgreens back half. call, just increase you above of as tell the adding And can XX/XX XX,XXX almost adding we that are the regarding we the XX/XX Pipette to doors that ideally operate I

going several have have quarter. into we other We we speak, this as Walmart, brands, Purecane

of across have doors We in XXX retailer beauty the Germany Biossance Douglas, leading Germany. into with going

with We place Sephora about Rose and adding have in JVN the significant a first or North in expansion Inc., America. so in took doors that XXX quarter

expansion lot a trend. doesn't question I the because second growth go question. most are to to a the on we of to makeup It Soho, just rest would line their of pop-up back. direct-to-consumer then in expect done, pop-ups have of the we year. store the Inc. third year, really store quarter, door, significant out in for the through see The have means your we which pop-up Rose the second had So we weeks few and that done significant much a growth. more mean the less taught the the customers We had was us demand a XX/XX which has successful as a wanting and we stronger in going half think doors, as that Look, I balance as come in our

their We a movement tell retailing. can the products, as engagement done We that was very you our well stores skin, high, on as whole see Inc. significant we over experiential that see customers I getting hair both our store in see is in pop-up Rose with the in conversion their to conversion treatments color their those makeovers So XX%. opportunity. getting

that for experience consumers conversion. can in XX% the of Miami products, bought design in I Inc. the who was Rose XX% Biossance you district over So came tell

engagement So becoming solid the store very repeat high conversion, that see consumers. experience our we consumers and very high

don't and our strategy with we on it see We drive we experiential, in said all cost conversion a again, major consumer. stores, bunch before, markets becoming about But and being and ourselves brands think the engagement our all for really to and decrease very locations, to acquisition spot see about increase limited rates I and we our the big stores is of do. as what wanted So retailers. more showcase

So helps the that addresses Steven I hope you think questions had. three I that

Steven Mah

you Yes so it. much. I appreciate Very it did. Thank helpful.

John Melo

Thank you.

Operator

comes go Wainwright. ahead. The H.C. Sameer of next Joshi from question Please

Sameer Joshi

Yes. Jon, Thanks. Hey Han.

What of in media social outreach, ads pop-ups the doing you is Just you focused in terms customer more focus the following on all previous where on influencers. or media, following are? any mouth store question them are of word sort of are up of

John Melo

having call. you on Hey Sameer, the good

we and of but on have is the above amount amount I call now, of said as it all the the You have. we with know, are the we data consumer traffic

they is We the the getting return, highest doing using and would where's return what on highest smarter really, and in social is if return customers. long-term And on about, grow much vehicles marketing, their influencers, requires micro sharing the the the selling the products be them are highest most think products micro actually social that using labs, best love them influencers and really channels. our using focused are direct technology, about engagement put have the reach and the bringing where to money, audiences, I with their the marketing, hopefully way the business. I e-mail, that and products, then affiliate they sessions effectively really selling authentic, or understand which just make call and we helping when to focusing and they can on converting to they love And the the audiences efficient

years a the do likely to We more around Jonathan a seen have it, how it have is took us to is that think are launch is drive social million Van performer us Biossance. brand proof ever best see Jonathan I now I We you the playbook a our Ness about with doing there probably get and know across great very four how think like Ness could to Jonathan year, mean, Jonathan Van and brand for this brand. doing hard a fast. we that. with activity, we of somewhere XX I focused brands.

So how even kind though performing sense about Rose And a gives we you as that is become. a lot is effective not well extremely brand. Inc. just of of a talking also Rose Inc., are we

returns selling, as the e-mail influencers, So highest is metrics mega micro and then affiliates returns products. whole are really as about playbook is approach well well social the do here that, the the are, that have go highest really passionate where and that it is amazing direct are some selling. about to And

Sameer Joshi

a Got that for color. was that good it. Thanks

that and opportunity, that you revenue is estimate million $XXX XXXX In ingredients get itself? lifetime it $XXX in money two product, terms a million the of or may lifetime this the is

John Melo

our Yes. year, No, our million the is the proceeds not this expectation XXX the of long-term transaction. value

particular generate per are. And the molecules case, XXX we to is significantly mean, of that these significantly. and value molecule. valuable done in this fund. million, are self just have ingredients want we XXX mark-to-market I types be expect molecules now tracking explicitly, of we gives XXX one increased XXX year, than where for at significant and to is the didn't in us you per to future this million say has this Every that value of done. you going portfolio probably doing most I it molecule. of we have this continue foreseeable probably to and but transactions, have over more the of if know, We its expect million how are And it what transaction a to we a we I million the the really repeat value

and any that that company, robustness financing are ingredients of right do now. to have, through financing with today can the equity we because plans we in working like the the of no that future we we we doing marketing for mainly amount see portfolio of actively just or do two have have are we the the We demand rights,

Sameer Joshi

previous Got the clarification it. personally. a related to just makes It sense. quarter And

think all the Is I expected in or -. fourth DSM from X.X it But quarter XX around right that came of million during seems EBITDA. this quarter was XXXX. the

John Melo

Yes.

Sameer. did, You

portfolio, demand the which that year. to We expected XX greater we that than significantly Here portfolio, is the now quite are at bit beginning in expect Based about think more the than a ingredients to is that. how of on generate the million. the for the earn-out

So through what left whatever is a about add fourth a come we result then on we kind is ramps a bigger that bringing think and quarter. actually in how are chunk, capacity we doing will the of as quarterly of And some demand how basis. as

go second, as can number that then fourth we quarter. in again, So a expect jump significant you third the first, ratable amount, into and pretty

Sameer Joshi

Got it. Thanks Thanks John. clarification. the for

John Melo

Thanks Sameer.

Operator

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

Laurence Alexander

have I maintain morning. the count seen in of number do want balance the markets. Good minimum of have the rhythm on crisis of you you Amyris operations? lost to capital see hand What to cash of as has sort

John Melo

working feed less do XXX a XXX you to just receivables we to like balance than But million we would of Thanks good Laurence and a have our And is to the on target of million we capital hand. no have to Look, unlocking lot what again, growth. a as on-board. like we maintain and manage. cash and amount minimum long-term to can

Laurence Alexander

OEMs And are the of on the technology you access you highlighting you the you selling where brands have side thank any - Can with give you for have partnerships the some or to. the first significant a and sense share examples validation? little market that how your from share, have of bit market long it maybe a ingredients get to of give of took already where

John Melo

Vitamin a Look, I is a DSM. one, E think examples E Vitamin maybe great of of with couple

produced I being XX% to are E Vitamin know, share. you'll say technology. supplying E Look, go other our the which from derived of we now the it Farnesene isophytol, took of Vitamin about of from market right think us would using a about XX% longer. you And Lawrence, market are start-up us is market XX-months the I Squalane to lot XX% Vitamin E example a Squalane, currently we comes understand. took where

out we assuming I can probably eight, it the is demand probably of to market I are now think we for everything we supplier to one, year. share. now, we right vanillin, vanillin, A nine-years are have leading eight-years, ship get probably this think Squalane into that faster

and natural in vanillin the in probably XX-months. supplier are happened We the that world. of leading volume And is

switch, the fast. crude of our can Vitamin get of you the a a lot bit of it is right. like And all those lot shift in current are close the prices, versus is vanillin to profile oil the economics economic how When had then is supply alternative. fast advantage, market like because it E, of of in our varies how the a help advantage Vitamin market or And E, three have our material. we right, and significant quite So around, the in and the

I breakeven I we $XX as calls, are $XX, oil advantaged. have in crude prior were disclosed at think with

in $XXX the versus make that So to advantage make E you crude, isophytol. oil using to actually Farnesene can imagine Vitamin crude

Laurence Alexander

respect to what would a the is, last consumer few take it patient for to flagged valuation respect on just or one you the prove sort with you just to brand one point? monetize brands. How to you are disconnect of with the now, then you this flagged, And the calls

John Melo

was base But less those us? is probably And is, a is guess is this position opportunity. ridiculous there personal out. lot the point it my proving of I opportunity know, need And aligned. months have six with to pretty the And, And I’m you my where obviously, for pretty plenty is us today, less Board conversations. probably we this are patient is and well we big a to on the pretty today shareholder execute getting aligned question to and patient ago. than again,

bit now. impatient a describe of what is So as I would right it

Laurence Alexander

something then either else where in fold the large I structural kind and JV a brands, like any basically could of of sort alignment, with disconnect you advantage that a is way? And structure take if there of or may,

John Melo

where attractive for Well, is, is ourselves going brand traction. I traction us, makes all additional spin value have greatest the our sense. portfolio of without And significant a question lot it of to in the mean, possible, the the is in that brands. at costing most I can based an is the a point something think brands the optimal question do what is we on There actually be

obviously, Laurence about it. possibilities and being hard of the each but at thoughtful one say, looking really to are So we

Laurence Alexander

Thank much. you very

John Melo

Laurence. Thanks

Operator

Freeman Michael next from question ahead. Raymond from comes go Please The James.

Michael Freeman

for much so thanks Hon, Hi, John. taking my questions. Hi,

you about. facilitate more sort fermentation? reaches you the Barra for of how when keep you capacity I steel First, And as production for in it beginning of on you your format, I the would put that at and to market right future, precision that that third-party sort on talking are the there. full at and expect fermentation to recognize to follow up exploring Bonita, you begin Do relates more of of same in this touch the journey or sort facility Can would the are it the like relationships production? to tightening ground

John Melo

with keen the this in X Michael, do mature the is question. for fermentation, to in can I'm lot the and Look precision and third-party on precision thanks horizon, the fast my fermentation real question not somewhere have relationships for I for to how At outlook industry the think enable to time, board to really we on precision a says XX-year medium fermentation. thanks which short is, being term.

of blocks. And the so is it way about we a first site's out, Well, Barra already Bonita as the all, an laid have. like building example

everything utility, we to every tanks expand, think, our compressors. more. in, can four to actually on. units adding enable adding from a treatment site are liter so So keep the are and already keen I we ago, add is I bringing as year XXX,XXX air compressors power tanks, of that bigger where Keep generation the molecules wasn't modular, water the manufacturing And to way a some massive to which

it interesting world in the was it access which shifting for. got that this a demand makes being than expanding that for faster to all And site able footprint we look just planned So utilities, really about is meet to is our us. to plenty footprint, had is that do Canaan continuously I what that really at of

looked somebody of about have at have Going we precision else, why and it looked because with plant back every facilities. we fermentation just at, a not to do lot

And we then a owner requires the find for secondly, to do. And capital great you our process is as is ensure replicated. And modification. it many difficult great one, that with to that operate always to aren't way even us have when ones. there First, a

in invest that investing than we in rather our So rather would own.

So I hope helps Michael. that

Michael Freeman

sales particular? your by I JVN, and that. you the shed How plans the Squalane. has really are next Pipette, Rose Terasana brand if Yes, a is some lot question that and light the Inc. the on been on could as a powered what brands. and brands has My helpful wonder, appreciate attention of Biossance, future in chemical engineer CBG for certainly on been there that going is I

John Melo

product that, that then partnering somebody tell resetting brands with I traction of it offering Look, the offering, not highlight, with can CBG if that that the we is as ratings, I it you, got will be We playbook follow was great right habit, would probably that We outstanding. purchase is is go the been In ability launch I couple pieces process that good to words, and like brand. lined why. it up. creature actually in was purchase probably and in brand. basically don't telling is more channel performance. because think our not taking than has in significant to maybe of completely I repeat We the partner. around have I'm we I What retail using the don't get didn't convert that our well a other not been a portfolio. great Squalane new There are The the is And like. formulation is as brand's category have significant went taken efficiency, did making consumer understand brand’s we brand, to it as to this, other of positioning after Acne, And we the in performance with current a believe I I after you going formulation. has us, that investment and in a not with us would consumers access our marketing the a in it formulation the the don't the of best words, not product.

and we formulation So the in on a will a I the that leveraging the announce really we with that are and will And what it we which throwing way our reset brands, that out. is across gone hasn't think we is that the are keeping it formulation, outstanding would doing baby be interesting actually the the future. super like brand is say baby, we current then partner near would

Michael Freeman

I baby Alright. queue. back into hop much very questions. for will Yep, keep Thanks indulging John. the these

John Melo

Michael. Thanks Great.

Operator

from ahead. Morgan. go JP Vatnsdal comes next Rachel The from Please question

Rachel Vatnsdal

taking question. for thanks guys, the Hey

customers your as demand is supply So outpacing your sounds and sourcing constraints facing are off themselves. business, first supply, ingredients like there some it on

So the you in place. can about you have. have order that minimum just of talk have you that also the you leverage In past, pricing talked about amount quantities

contracts doing you larger, more with that do can lock So customers supply? up long-term consider they so

John Melo

Hi lot something on will is we something think Rachel. time spending power Thanks I definitely we of contract are great and pricing right is on. that being don't structures for I questions. you a focused really now. tell Look are on

so You It long. know, advantage I had pricing is we have demand have really don't hesitant I know, been think point is, a have of we now, choice. of. And stable you a take we should where because - at for

is I there core ingredients. reset some opportunity think to an our of

them. We only supply ones are the that

not So necessarily shifts I to think of but big where that the Rachel, in contracts. is the watch structure

Rachel Vatnsdal

just DSM helpful. that Great, then me on And is for last the one earn-outs. is

that come could you above that you the So that hear million going XX It year. is guys in, that in to earlier than expected. had nice like sounds better penned

So how talk especially modeling is and that driving think about you next into then should just upside DSM year what going forward, Thank you. we can there? about

John Melo

where performing tell two you well subset ingredients we really put that are that else a our in playing follow portfolio give didn't that for and how drives detail drivers into upside that and And a big and vanillin, had couple of if a of perform look can year right of to actually their actually to it the back just the [indiscernible], the everything F&F Firmenich and category in fragrances there they Yes, on those ingredients and I there, customers is as well for a we a how are that in portfolio in we And well is maximum wanted without is performs the way. our fortunate getting supply. Sclareol flavors than up. lot we now. portfolio? at ingredients of about in really, we you portfolio ingredients, what out just how as on business that doing the the proxy are now very our thought right earn-out want expected. performance better we main does And Again, of

consumer industry helps flavor then is So what post the about, space care if innovation that on And you on side, market, end-to-end that fragrance to hope the go what more COVID. sourced that of in and food like, significant are a focus driving on, and the personal that down Rachel And kicked much for on I good drives more that. for then the is kind secondly, side flavor think doubling ingredients. the a sustainably goods

there is driving their then and So the which those by business business, of ingredients, earn-out that been have And is we greater their for fundamentals our are a comes powered portfolio. ingredients us. couple that demand in our are to lucky

Rachel Vatnsdal

you. Thank Great.

Operator

ahead. Our of Capital Tanaka Tanaka Management. Graham final Please question comes from go

Graham Tanaka

guys things real to Thank me quick. for some Yes. in you squeeze in

What the monetization recurring you expectation it Now attractive forward? molecule marketing upfront? milestone larger would for the rights, what and payments? Thanks. model manufacturing that would molecule for the On revenue be and like per have going looks the of more be

John Melo

Graham, process specifically just are currently in a clarification. you we to monetizing? the of molecules Are referring the

Graham Tanaka

did this allude in to to the to do you Yes, those because able continue but being future, also year. every

of set would next years, recurring monetize mind, you. molecules, think for more few thank the valuable, and in my more couple revenue a make it I tend to to this

John Melo

Yes, that. no, thank you for

Okay.

of seeing the we traction, greater what is that think I benefit have right. are look, So molecules

model develop, these the molecules, ensure is we think really that scale, are control molecules I in they we for that particular So we complete us just to have over.

that growth I not done. continue going good Whenever these high to underneath molecules about the I we traction what keep control them you those components three to the molecules revenue then expect XX% molecules, XXX three, forward could our is going helps the molecules well we molecules think if in maximize the the is make we to done. think the XX% model markets per only yourself have that a ensure are is million a value and get molecules continue very the revenue these such present, are Graham. based at through because that have in and both molecule, is molecules that over number support and markets. end we forward, think have and and about of technology. to so hope from way that are maximize produce to the is market value these on growing grow you markets that the strength these the to if So Ensure it one It continue end

Graham Tanaka

Yes.

So manufacturing retained expectation have what the and revenues product? Thanks. be would manufacturing for you rights as improving the keep the

John Melo

molecules, I to a two I at growing would for year. that somewhere the tell million be annual XX these you around million Look, would XX XX% XX% think, manufacturing to

Graham Tanaka

an different? something margin And that at would be sort margin XX% gross XX%, ingredients of or

John Melo

is - that we like think we where in once more a do deal, go range. is the to the I which manufacturing XX% No, to margin, XX%

Graham Tanaka

got you I'm us think talking brands, wondering about Stripes, then Thanks. now are be And you and their if mentioned then of their of could them. relative Okay, Rose, it. project Biossance might what revenues you having the and you margins? to could just you give if significant And the worth as a value. But just a and JVN feeling sort Pipette for couple value of MenoLabs

John Melo

again, and Look, MenoLabs, Rose is I their that, think the said, level like and the call structure. JVN about Stripes, million Stripes the middle as middle. XXX would more Inc. see in at I you selling Stripes on kind the the is million to and currently range When is of and Inc. around somewhere based a structure would valued would is of channel I million. I performance, somewhere XXX somewhere Pipette I mass is brand. mass Think Rose say as about XXX bookings brand valued Stripes that those Inc. somewhere a MenoLabs margin to around not gross JVN in about revenue of two yet, but Rose between more expect during think currently the perform and somewhere of level.

structure to brands, than what could and So structure margin XX% XX%. and the the based multiples prestige on by markets those lower margin, lower the for be actually channel is and

it So is significant valuation. pretty a difference in

margin you without you a simple of segments, think is think valuations would hope and across you versus are to some helps think prestige numbers specific giving different channel. So and it And channel I as proxy that it different about mass. be why and about margin

Graham Tanaka

could Yes. real in If fill quick. I a of questions couple

I think to the people are year. what costs? interested in costs, tend your to to go or annum next know R&D annum what we the Thanks. you Is half are per those talking in as is next SG&A about per be then and controlling control and of a going be and there second might

John Melo

XXX we SG&A four into second into then half think call year, as is our annualized in. I expect into half, go I next the operate the of so outside Look, what the don't range we that realm will be next to to expect second and to million, I year,

I of think growth. have leverage drive to that a ton level revenue capability operate significantly we at and and be to able

we we now more we in people about can drive are really activity and really very the have, So a have we we that. the are putting it the do done is to assets and using right lot have, activity I think growth we confident with

leverage forward. and already expect that that going I doing to are just We

Graham Tanaka

last the fourth for the costs, operating operating might company be the sounds the put three would like quarter Bonita terms which And year, in plants when Thanks. year? fermentation you two facility the and this is say finishing whole together plants of versus, Great. the Barra is are do last fourth the fully what in quarter

John Melo

is the we XX% ingredients reduction it around a costs line. ingredients versus where what and is the impact, gross shipping that. don't quarter expense at, is to year comparing impact know have with XX% level. mix in margin I last currently know, solid fourth on the I getting obviously on probably don't line do, operating the current then I got re-emphasize I year. costs quarter side consumer call, XX% the said versus specific on margin in the a we more of on moving I Look, a think much which closer margin fourth if really because above will you up is of this And are picture. that to the

reduce of expansion margin quarter $XX of quarter $XX in impact significant million reduction significant in fourth probably to a actually significant margin consumer, cost million our then shipping is expansion to on fourth a efficient on So that reduction volume, more chain which ingredients, and of goods on a the having and supply just better in based costs. cost - cost a by

Graham Tanaka

I vaccine you or Great. ask that Any opportunity. change Thanks. that Actually, COVID to the expectations real one wanted there is on news trials actually more quick. of and

John Melo

update I it to tweaks publicly the or I call, vaccine. approved, and later has little is I has social is than would and underway the which a could up progressing leads is around an But about and we by the that news publicly, the not has leaking that next has fact was been trials the ready think it But Community give recruiting complete, already on regarding expected. to I would said careful have the trials, hope either and start be I it results. think picked things some somebody around Bio have been you good some

Operator

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

John Melo

to not for your you It Relations your everyone and follow-up today. more please with did you, great and support. time questions for Great, interest Danielle. was If to Investor continued our today to question, actually Thank for joining get thank team. we have us

I think Q&A. XX went with almost minutes we

a starting been on to of very we have invest excited good to we we focused about at cash where needing have very are are to have optimize Thank not assets investing, really our that And day. and what We you being businesses, all to we rest invest where efficiency, benefit just our had significantly getting very knowing reducing the what amazing are on been burn really point planned. built. a from operational based now the we

Operator

presentation. is you The Thank attending for now concluded. conference today’s

You now disconnect. may

Amyris (AMRSQ) 10 May 222022 Q1 Earnings call transcript