InnovaDerma exceeds expectations with soaring profits
InnovaDerma
29.00p
16:14 31/05/22
UK life sciences developer InnovaDerma announced on Tuesday that it had seen both revenue and profit double in its year ending 30 June.
Personal Goods
16,330.05
16:59 23/04/24
InnovaDerma grew its revenue 105% to £8.85m thanks to a robust performance from its self-tanning solution, Skinny Tan becoming the number one selling brand in its category on Superdrug shelves and a successful rollout into South Korea's largest beauty chain, Olive Young.
Gross profit was up 125% to £5.57m after the outfit relocated its manufacturing hub from Australia to the UK, bringing about significant reductions to the cost of international freight in addition to considerably decreased lead times in its supply chain.
Most impressive was the 325% surge in the firm's pre-tax profit that rocketed to £1.03m, leaving the company with no external debt and a 68% increase in cash and equivalents to £207,000.
Through the year, the group acquired several early-stage brands like Stevie K Cosmetics and Charles Lee, as well as Prolong, an FDA-approved medical device aimed at curbing premature ejaculation.
"The journey, however, has just begun as we prepare to launch multiple new brands that we have either successfully developed in-house or acquired during the past 12 months. The strength in our proven international direct-to-consumer (DTC) platform and retail distribution channels should allow us to replicate the success we are experiencing with Skinny Tan," said Haris Chaudrhy, executive chairman of the group.
InnovaDerma had been praised for its DTC platform, choosing to advertise via social media channels such as Facebook and Instagram instead of the more traditional usage of Google Adwords, spending £1 for every £4 it made.
InnovaDerma shares were up over 300% on the year when it released its report and as of 1445 BST, had suffered from some profit taking, dropping 7.96p to 347.00p.