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InnovaDerma reports strong start to second-half after navigating Facebook advertising changes

"We have overseen a period of significant adjustment to our direct to consumer platform brought about by the changes within the social media platforms we advertise on,” said chairman Haris Chaudhry

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A place in the sun: InnovaDerma said its popular Skinny Tan range will be on the shelves of just over 1,300 Boots stores by the middle of next month

InnovaDerma PLC (LON:IDP) said the second-half had started well after the beauty and personal care group navigated a tricky first six months.

Chairman Haris Chaudhry said: “Our revised engagement strategy is delivering a marked improvement and we are therefore confident that the second half of the year will be disproportionately higher than in previous years.”

WATCH: InnovaDerma reports strong start to second-half

Changes to the Facebook advertising algorithm, flagged in advance of results, affected the top-line.

However, the company’s push into mainstream retail following deals with Boots and Superdrug looks likely to pick up the slack.

In fact, the UK high street operation performed strongly with a 60% sales increase when compared with the same time last year.

Overall for the six months ended December 31, revenues receded 7.5% to £3.9mln, which was expected, giving a loss of £400,000. Gross margins rose by just under five percentage points to 58.3%.

Crucially, the anticipated uptick in turnover appears to be occurring with top-line growth of 37% year-on-year in the first six weeks of the second half.

"We have overseen a period of significant adjustment to our DTC [direct to consumer] platform brought about by the changes within the social media platforms we advertise on,” said Chaudhry.

Good start

“Having addressed those underlying factors, we have seen a quick response with a resulting increase in DTC revenues of 34% against the similar period last year.”

InnovaDerma said its popular Skinny Tan range will be on the shelves of just over 1,300 Boots stores by the middle of next month.

Superdrug, meanwhile, continues to engage in new product launch initiatives, investors were told.

Skinny Tan is one of a number of consumer brands being developed by InnovaDerma. Its Roots Double Effect shampoo range has recorded a 252% revenue lift, while sales of Charles + Lee skincare products rose 67%.

Quick facts: InnovaDerma PLC

Price: 76 GBX

LSE:IDP
Market: LSE
Market Cap: £11.02 m
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Full interview: InnovaDerma’s first half revenues advance 28%

Beauty product innovator InnovaDerma (LON:IDP) saw its revenues for the half ended December 31 last year advance 28% year-on-year, led by the performance of its Skinny Tan beauty range. Executive Chairman Joe Bayer spoke to Proactive London and explained why figures were up and also gave...

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