The Silk Laser Australia Ltd (ASX: SLA) share price has been a strong performer on Thursday.
In late morning trade the laser, skin care, and cosmetic injections company’s shares are up 6% to a record high of $4.55.
This means the Silk Laser share price is now up 32% since its IPO in December.
Why is the Silk Laser share price shooting higher?
Investors have been buying Silk Laser shares this morning following the release of a very strong half year result.
For the six months ended 31 December, the company reported a 62% increase in network sales to $44.9 million and a 78% lift in revenue to $30.6 million.
Management advised that favourable consumer trends aligned with its successful execution of sales campaigns, resulting in strong like-for-like growth across its core offerings. These include laser hair removal, cosmetic injectables, skin treatments, body contouring, and skincare products.
In addition to this, the result was supported by the expansion of its clinic network. Silk Laser added 4 new clinics, bringing its total to 56.
Positively, margin expansion underpinned even stronger earnings growth. Silk Laser reported a 166% increase in pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) to $10.6 million.
On the bottom line, net profit after tax came in 305% higher than the prior corresponding period at $4.7 million.
“A busy and highly successful period”
Silk Laser’s Managing Director and Co-Founder, Martin Perelman, was rightfully pleased with the half.
He said: “The first half of this financial year has been a busy and highly successful period for SILK, and I am very proud of our first results delivered as a publicly listed company. All of SILK’s service categories performed in line or above expectations and the Company is well positioned for a strong second half.”
Speaking of the second half, the company is expecting a strong period and has upgraded its guidance to reflect this.
On the basis that there are no significant COVID disruptions to second half trading, Silk Laser now expects network sales in the range of $82 million and $86 million. This compares to previous guidance of $81 million.
And pro forma EBITDA is now expected in the range of $15 million and $16 million. This is up from $14 million previously.