InnovaDerma PLC ("InnovaDerma", the "Group" or the "Company)
InnovaDerma, a UK developer of 'at-home' and clinically proven treatments for hair loss, hair care, self-tanning and skin rejuvenation, provides an update on trading ahead of its Final Results for the twelve-month period ended 30 June 2016.
The Board is pleased to announce that it expects revenue and profits for the full year to 30 June 2016 will be significantly higher than the previous year, driven by underlying organic growth across its product range and the contribution of the Skinny Tan business, which was acquired in May 2015. The integration of the Skinny Tan business into the InnovaDerma operations has been completed successfully and the product range has grown strongly.
Skinny Tan is the first self-tanner that combines a natural tanning active with naturally derived skin smoothing actives to tan, contour and reduce the visible appearance of cellulite. The Group expects to report revenues of approximately AUD $8.3m (£4.2m) representing a significant increase of more than 800% compared to the previous year FY 2015: AUD$1.05m (£0.525m). It expects to announce a maiden net profit as a result of the strong top line growth. The Group has maintained a robust financial position with little external debt and a strong cash position.
Key Operational Developments
InnovaDerma significantly expanded its international distribution and retail network and this has been a key driver to its growth and strong financial performance. As at 30 June 2016, the Company has in excess of 2,500 retail points (FY2015: 250) in seven countries. In the period under review, the Company secured the following key retail contracts:
· In February 2016, Skinny Tan was launched as a new brand in 220 of Superdrug's stores and by July 2016, it was stocked in all 776 of its stores throughout the UK. In the same month Skinny Tan became the No.1 selling tanning brand in Superdrug by revenue. Post period end, Skinny Tan won Best Breakthrough Brand 2016 at the Superdrug Supplier Conference.
· In Asia, the Company secured a distribution agreement with Olive Young, Korea's largest health and beauty store chain. Skinny Tan is currently sold in Olive Young's 550 stores nationwide and is distributed through PROS Korea, a distributor for InnovaDerma products for North East Asia.
· InnovaDerma secured a distribution with Chemist Warehouse for distribution of Skinny Tan across all of its 320 stores nationwide. Chemist Warehouse with annual revenues of more than AUD$2.7bn (£1.5bn) is one of the leading and fastest growing pharmacy chains in Australia.
In tandem with its growing network of key retailers, the Company is highly focused on its digital direct to consumer strategy which has supported revenue growth and enabled Skinny Tan to grow in popularity. Brand loyalty in multiple markets is building strongly as the Company continues to expand its international footprint.
The Board is pleased with the progress and looks forward to discussing this further at the time of its final results expected to be at the end of October.
Haris Chaudhry/Joe Bayer
+61 (0)3 9111 0071
+44 (0)203 764 2341
Shan Shan Willenbrock
+ 44 (0)20 7930 0777
InnovaDerma PLC (LSE: IDP) specializes in the research, manufacture and marketing of clinically proven products in hair loss, anti-ageing and beauty sectors. InnovaDerma has presence in the United Kingdom, Australia, New Zealand, Philippines, South Africa, Hong Kong and South Korea.
This information is provided by RNS