("InnovaDerma" or the "Company")
Pre-close Trading Update
Trading Performance - Well Ahead of Expectations
InnovaDerma (LSE: IDP), a UK developer of life sciences, beauty and personal care products, is pleased to announce that it expects revenue and profits for the full year to 30 June 2016 will be well ahead of expectations. Overall revenues are expected to increase by 80% on a constant currency basis to approximately £9 million. Revenues have been bolstered by the exceptional performance of Skinny Tan through the Company's fast-expanding Direct to Consumer platform and retail channels, with the brand achieving the highest-monthly revenues for four months in the second half of financial year 2017. Underlying profit before tax is expected to increase by 355% to approximately £1.28 million excluding one-off costs (2016: £0.281 million on a constant currency basis) driven by a more efficient supply chain which has led to an improvement in gross margin of approximately 62% (2016: 57.4%), up 400 bps.
The Group has maintained a strong balance sheet.
New Operational Developments
InnovaDerma is pleased to announce the following new operational developments:
· As previously announced on 1 June 2017, Boots Ireland had agreed to stock Skinny Tan in at least 35 of their largest stores. Boots Ireland has agreed to increase this to 65 stores out of their 80 stores and the Skinny Tan range will be available on their shelves from July 2017.
· The Company has secured a new and important channel to enhance Skinny Tan Professional sales in the UK through a partnership with the London School of Beauty & Make-up. Part of the Urban Retreat group of companies, the school is one of the UK's largest private education providers in the beauty sector and trains more than 1,000 beauty specialists per year, working alongside brands such as Mac, Laura Mercier and Murad. This strategic channel is expected to cement the Company's long-term future in the highly lucrative professional spray tanning sector.
· The Company has developed and launched a skin brightening and anti-ageing product portfolio in Korea which has received KFDA (Korean Food & Drug Administration) approval. The product brightens skin, contains SPF 50 and reduces the signs of ageing. The range has initially been launched in 600 pharmacies and beauty stores by the Company's distributor, PROS International Company Ltd of Korea. Skin Lightening / Brightening market is a fast growing skin care segment and is expected to reach over US $20 billion per annum by 2020.*
The Board is pleased with the progress being made and looks forward to discussing this further at the time of its final results.
Haris Chaudhry, Executive Chairman of InnovaDerma said:
"We have been working hard to execute our strategy and I am delighted that this has delivered strong sales and growth in profitability. Our ability to extend our flagship brand, Skinny Tan, to launch new products successfully and to expand our diverse portfolio of premium brands, together with a robust balance sheet, means we are strongly positioned for future growth."
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 life sciences, beauty and personal care products. InnovaDerma has presence in the UK, US, Australia, New Zealand, Philippines, South Africa, Hong Kong and South Korea.
This information is provided by RNS