Silk Laser Australia

This company operates a network of franchised clinics that do laser hair removal, body sculpting and cosmetic injectables. The company had a good year in FY21, beating prospectus forecasts with revenue of $58.9m and underlying EBITDA of $14.8m. Silk Laser benefits from strong underlying demand for beauty treatments from women across multiple age demographics and has a strong pipeline of potential franchisees. The Net Promoter Score for the clinics is very high, at 78 in FY21. We believe the end of lockdown in Australia will be a positive for Silk Laser. The company acquired Australian Skin Clinics in September and Silk Laser is now looking to acquire other brands. Silk Laser is flagging a strong FY22 based on this acquisition, new clinic openings and ‘pent up demand’.

The EV/EBITDA multiple of FY23 consensus of only 10x looks low given the expectation of generally double digit earnings growth.


Read the most recent article on SLA here