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InnovaDerma's revenue surges

The board looks forward to further growth in H2 and beyond."

InnovaDerma PLC - InnovaDerma's revenue surges

InnovaDerma PLC (LON:IDP) said the online customer base for its Skinny Tan product has increased by 12% to 683,000 since June of last year.

In its results statement covering the second half of 2019, the developer of beauty, personal care and life science products said it had been a period of strong progress.

WATCH: InnovaDerma 'well-positioned' with a strong pipeline of new products and markets

Revenue surged 32.8% to £5.1mln from £3.9mln in the same period of 2018 and the loss before tax narrowed to £347,501 from £422,311 the year before, despite marketing expenses increasing to £1.7mln from £1.1mln.

During the reporting period, the company’s retail distribution channel zoomed past 2,900 shops – up from 800 at the end of 2018 – and contributed 43% of total revenue; the direct-to-consumer (DTC) channel saw its share of total revenue ease to 57% from 59%.

The flagship Skinny Tan product saw revenue rise 40% year-on-year, helped by the roll-out of the product into Boots as well as continued support from Superdrug.

The brand was relaunched in Australia and the US via the company’s DTC channels, with the company very pleased with the launch campaigns, which sparked strong revenue growth and generated an attractive return on investment (ROI).

Skinny Tan is very well-positioned for the tanning season in the second half of the financial year, InnovaDerma said, with Tesco listing the brand for the first time.

For the group as a whole, trading in 2020 has been positive and in line with management’s expectations, with revenue up 17% year-on-year in the first seven weeks of the year.

The company has a strong pipeline of new products for Skinny Tan and Charles +Lee (skincare) plus the Roots (haircare) brand refresh to be launched in the second half to drive further growth, while yesterday it announced its new hair removal product, Nuthing.

 

The company is also seeking to expand its geographical reach and is in discussions with retailers and distributors in Europe, the USA, South Africa, Canada and Australia who are interested in stocking the company’s topical (i.e. applied to specific parts of the body) brands.

“Despite a challenging retail environment, we have delivered an increase in revenue of 32.8% compared to the previous year and made excellent progress against our strategic aims. Our growth has been driven by our enlarged retail network and the strategic investments and changes we have made to our digital channels, which has enabled us to diversify across platforms, attract new customers and improve our ROI,” said Joe Bayer, the executive chairman of InnovaDerma.

"Product innovation is critical to our business and Wonder Serum and Choc delivered exceptional performances with the former now rolled out to 2,100 Boots stores from 1,305, a testament to its popularity and success. We announced the launch of our new brand, Nuthing, an innovative range of hair removal products which will be available on our DTC channel, Superdrug online and in all of its 800 stores nationwide. We are excited about our new brand and the significant growth it could bring both from the UK and overseas,” Bayer said.

"Trading since period end has remained positive, and we have in place new product launches across our topical brands and will continue to build on our successes in geographical markets outside the UK. We believe we are well-positioned but remain mindful of the challenging retail sector,” Bayer added.

Quick facts: InnovaDerma PLC

Price: 60 GBX

LSE:IDP
Market: LSE
Market Cap: £8.7 m
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