Makes Skinny Tan – the popular tanning product
Products stocked by likes of Tesco and Boots
First FDA-cleared premature ejaculation device to launch in UK this year
Set for “profitable and cash generative” second half
What it does
The company, which floated back in the autumn of 2016, makes the Roots Double Effect haircare range, as well as a men’s skincare range called Charles + Lee.
It also owns Prolong, which is the world’s first FDA-cleared medical device for premature ejaculation which it launched in the US and Australia in 2018. It is expected to make its debut in the UK and Europe later this year.
But perhaps InnovaDerma’s most famous product is Skinny Tan – the firm’s wildly popular range of self-tanning lotions.
In a nod to the quality of its products, major retail chains such as Tesco, Boots and Superdry stock InnovaDerma goods.
How it’s doing
In February, InnovaDerma told investors that its second-half had started well after navigating a tricky first six months.
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.
That growth should filter down to the bottom line, too, with InnovaDerma expecting a “profitable and cash generative” second half.
What the boss says
“We have overseen a period of significant adjustment to our DTC platform brought about by the changes within the social media platforms we advertise on,” said executive chairman Haris Chaudhry.
“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.
“Our revised engagement strategy is delivering a marked improvement and we are therefore confident that the second half of the year will be disproportionally higher than in previous years.
“This view is also underpinned by Skinny Tan which will be on shelves in 1,305 Boots stores from mid-March to capitalise on the peak selling season.
“Together with Superdrug, our core brand will now be available in more than 2,000 stores in the UK. Roots is performing very well and will benefit from new product development in the second half of the year. We are making excellent progress across the business and we are confident for the future.”
What analysts are saying