InnovaDerma PLC Trading Statement (8289N)
26 May 2020 - 4:00PM
UK Regulatory
TIDMIDP
RNS Number : 8289N
InnovaDerma PLC
26 May 2020
LEI: 213800WRAP6W8VDL6B38
InnovaDerma PLC
("InnovaDerma" or the "Company")
Trading Update
InnovaDerma (LSE: IDP), a UK developer of beauty, personal care
and life sciences products, today provides the following update on
trading ahead of its year end on 30 June 2020.
COVID-19
Our priority is the safety and wellbeing of our employees. As
previously announced, we implemented work from home procedures and
have taken additional measures to enhance our communication with
each other to maintain wellbeing and effectiveness. These steps
have proven to be effective and our colleagues are working from
home successfully and continuing to provide uninterrupted services
to our customers, particularly via our direct-to-consumer channel
(DTC). All of InnovaDerma's employees remain fully employed and,
given a lean team, none of the workforce have been furloughed
during this period.
Trading Update
As previously announced, while trading in the second half of the
year began positively and was in line with expectations, the UK
Government's lockdown measures to stop the spread of the pandemic
have significantly reduced the sale of our brands through our
bricks and mortar channels. However, our DTC channel, which
accounted for c.60% of our revenue in FY2019, remains a key pillar
of our distribution strategy. The investments we have made over the
years in ecommerce and our customer lists has allowed us to
accelerate the diversification of platforms, increase the number of
conversations and attract many new customers. This strategy, our
digital expertise and ability to swiftly leverage our multi-channel
model has significantly boosted our online sales over the first
four months of the second half, as consumers shifted their
purchasing online.
April was a record month for Skinny Tan DTC sales in both the UK
and the US. Skinny Tan online sales in the UK were up 63% over the
same month last year. The Skinny Tan UK customer base increased by
21% in the four months since December to more than 710,000, with
revenue generated from online up 10% over the same period last
year. The US DTC market has performed very strongly, particularly
benefitting from the relaunch of a number of leading Skinny Tan
SKU's. The US customer base is up 50% from just under 60,000 at the
end of December to more than 88,000 at the end of April, with sales
up 324% from the same period last year. Furthermore, our sales
through online beauty retailers which are separate to the Company's
DTC channel has performed exceptionally well.
The launch of Nuthing, our new range of hair removal products
has seen continued growth in revenue week on week despite the very
constrained retail environment. The brand is building market share
in the category with DTC volumes increasing steadily, despite the
absence of the planned retail launch in Superdrug stores.
The relaunch of Roots is progressing well and has been presented
to Boots who responded positively. A comprehensive package of
products including new formats are ready to be delivered to the
market at the appropriate time.
The strength of our business model has enabled us to perform
resiliently in a difficult market and significantly offset the weak
in-store retail environment. As a result, the Board expects the
Group's revenue for FY2020 to be no less than the prior year
(GBP12.9m.). As in the prior year, the second half is expected to
be both profitable and cash generative.
The Group is well funded, continues to benefit from strong cash
flows and has sufficient levels of cash with no debt.
The Board continues to monitor COVID-19 and the impact of the
pandemic carefully. The team is working hard and is focused on the
peak selling season for Skinny Tan and the last few weeks of
trading before the financial year end. The Company remains
well-positioned, supported by a proven strategy and a strong online
presence. The resilience of the business and ongoing strength of
the Company's key brands means that Innovaderma is well positioned
for future growth as the global economy slowly starts to
reopen.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Further enquiries
InnovaDerma
Joe Bayer +61 (0)3 9863 8030
Kieran Callan c/o TB Cardew +44 (0)20 7930 0777
finnCap Ltd
Geoff Nash/Kate Bannatyne +44 (0)207 220 0500
Alice Lane - Corporate Broking www.finncap.com
---------------------------
TB Cardew
Shan Shan Willenbrock/Tom Allison + 44 (0)7775 848537
Olivia Rosser innovaDerma@tbcardew.com
---------------------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTKKPBKQBKDKPB
(END) Dow Jones Newswires
May 26, 2020 02:00 ET (06:00 GMT)
Innovaderma (LSE:IDP)
Historical Stock Chart
From Apr 2024 to May 2024
Innovaderma (LSE:IDP)
Historical Stock Chart
From May 2023 to May 2024