Stock Analysis on Net
Stock Analysis on Net

e.l.f. Beauty, Inc. (NYSE:ELF)

This company has been moved to the archive! The financial data has not been updated since August 9, 2024.

Common-Size Income Statement

e.l.f. Beauty, Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021 Mar 31, 2020
Net sales 100.00 100.00 100.00 100.00 100.00
Cost of sales -29.28 -32.56 -35.81 -35.18 -35.97
Gross profit 70.72% 67.44% 64.19% 64.82% 64.03%
Selling, general and administrative expenses -56.10 -55.67 -56.59 -61.03 -55.56
Restructuring (expense) income 0.00 0.00 -0.01 -0.83 2.11
Operating income 14.62% 11.77% 7.59% 2.95% 10.59%
Other income (expense), net 0.12 -0.32 -0.37 -0.51 0.15
Impairment of equity investment -0.28 0.00 0.00 0.00 0.00
Interest on term loan debt -0.81 -0.60 -0.44 -0.92 -2.15
Amortization of debt issuance costs -0.04 -0.06 -0.08 -0.27 -0.26
Interest on revolving line of credit -0.30 -0.03 -0.09 -0.06 -0.05
Interest on finance leases 0.00 -0.01 -0.02 -0.04 -0.06
Interest expense -1.16% -0.69% -0.62% -1.29% -2.53%
Interest income 0.47 0.34 0.00 0.00 0.31
Interest expense, net -0.69% -0.35% -0.62% -1.29% -2.23%
Loss on extinguishment of debt 0.00 -0.03 -0.12 0.00 0.00
Income before provision for income taxes 13.77% 11.07% 6.48% 1.16% 8.51%
Income tax (provision) benefit -1.30 -0.44 -0.93 0.80 -2.19
Net income 12.47% 10.63% 5.55% 1.96% 6.32%

Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).

The financial performance between March 31, 2020, and March 31, 2024, is characterized by a significant expansion in gross margins and a strong recovery in bottom-line profitability. While the 2021 fiscal year represented a period of margin compression, the subsequent three years demonstrate a consistent upward trajectory in operational efficiency and net income generation.

Gross Profitability and Cost Management
A consistent downward trend is observed in the cost of sales, which decreased from 35.97% of net sales in 2020 to 29.28% in 2024. This reduction in relative costs resulted in a steady increase in gross profit margins, rising from 64.03% to 70.72% over the analyzed period. The most significant margin expansion occurred between 2022 and 2024, indicating improved production efficiencies or increased pricing power.
Operational Expense Trends
Selling, general and administrative (SG&A) expenses represent the largest operational cost, fluctuating between 55.56% and 61.03% of net sales. After a peak in 2021, these expenses have stabilized at approximately 56% of net sales. The relative stability of SG&A costs amidst growing gross margins suggests the realization of operating leverage, where revenue growth exceeds the growth of fixed operational costs.
Operating and Net Income Performance
Operating income margins experienced a sharp decline in 2021, dropping to 2.95%, but subsequently rebounded to reach a peak of 14.62% by March 2024. Net income followed a similar pattern, recovering from a low of 1.96% in 2021 to 12.47% in 2024. This growth indicates that the increase in gross profitability was successfully translated into bottom-line earnings despite the high cost of SG&A.
Financial Costs and Non-Operating Items
Net interest expenses as a percentage of sales have generally declined from 2.23% in 2020 to 0.69% in 2024, although a slight increase was observed in the final year. Interest income also showed a positive trend, reaching 0.47% of net sales in 2024. Other non-operating impacts, such as the loss on extinguishment of debt and impairment of equity investments, remained marginal and did not materially alter the overall profitability trend.

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