InnovaDerma highlights positive start to new financial year

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InnovaDerma PLC (LON:IDP) has highlighted a “positive start to its new financial year” and a strong pipeline of brands in readiness for peak season in the northern hemisphere.


In an outlook statement accompanying its results for the year ended June 30, the maker of beauty and personal care products also said further inroads are being sought for product distribution in the US and Australia, while a full year contribution from its Nuthing brand and deferred launch activity from march is also expected to support revenue growth.


READ: InnovaDerma appoints Americas exclusive distributor, Nuthing brand enters Australian market


The firm is also looking to accelerate the development of its Roots brand, while its Prolong product is expected to make further contributions as regulatory approvals are on target to be granted in Korea and Hong Kong.


InnovaDerma also reported that sales in the initial period of the current year were 3% ahead of the same time a year ago and in line with management expectations.


“We expect the pandemic will likely continue to cause further uncertainty for some time yet, however, we believe we are well positioned and have the right strategy, financial strength and expertise to deliver further growth”, executive chairman Joe Bayer said in a statement.


In the figures for the year just ended, the company reported an underlying operating pre-tax loss of GBP0.3mln compared to a GBP1.4mln profit the previous year, while revenues rose 3% to GBP13.3mln.


Bayer highlighted that the company’s peak season had been “unfortunately beset” by the effects of the pandemic, which had created the “toughest business environment” the firm had encountered and as a result had impacted its figures “disappointingly”.


However, he said the higher revenue figure was “pleasing” and demonstrated the strength of the company’s brands and “multi-channel strategy which has enabled the business to be more agile and resilient in unprecedented times”.


In a note, analysts at the firm’s house broker finnCap left its price target for InnovaDerma under review until they received “greater visibility over any recovery in retail channel sales and online promotional costs”.


However, the broker said there is “scope for optimism” evidenced by the growth in the business in the early part of the current year, which compared to a “strong” first half in the previous year.


Shares in InnovaDerma were 1.7% lower at 57.5p in late-morning trading on Wednesday.


–Adds broker comment and updates share price–

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