InnovaDerma (LON:IDP) highlighted in a trading update for the 2020 financial year that its direct-to-consumer (‘DTC’) channel remains strong after sales of its health and beauty lines through the group’s bricks and mortar channels were hit during the lockdown.
InnovaDerma told investors this morning that it now expects full-year turnover to be at least in line with last year’s figure of £12.9 million for the year ending 30 June 2020.
The company reported that DTC sales had accounted for 60% of its revenue for the FY19 financial year and that it remains ‘a key pillar’ of its FY20 distribution strategy.
The group said its e-commerce focus has enabled the business to significantly boost its online sales over the first four months of the second half of FY20, as consumers shift to online purchasing.
Meanwhile, it added that the US DTC market had performed ‘very strongly’ with its customer base up 50% and its sales up 324% from the same period last year.
The group also said it is well-funded and continues to benefit from strong cash flows and has ‘sufficient levels of cash with no debt’.
Shares in InnovaDerma were trading 10.22% higher at 75.5p on Tuesday afternoon.
“As in the prior year, the second half is expected to be both profitable and cash generative,” the group said in a trading statement.
It noted that April was a record month for direct sales of the Skinny Tan DTC range in both the UK and the US with a 63% increase over the same month last year.
The Skinny Tan UK customer base has increased by 21% in the four months from December to more than 710,000, with revenue generated online up 10% over the same period last year.
The group also noted that the launch of ‘Nuthing’, the company’s new range of hair removal products, has seen ‘continued growth in revenue week on week.’
InnovaDerma said it believes it is well positioned for future growth as the global economy slowly starts to reopen.
Follow News & Updates from InnovaDerma here: