InnovaDerma PLC (LON:IDP) has trimmed this year’s sales and profits expectations after Superdrug reduced orders of Skinny Tan, its fast-growing tanning product.
Sales growth for the year overall will still be significantly ahead of the first half’s 31% (to £4.2mln), and last year’s total of £8.9mln but less than previously expected.
READ: InnovaDerma confident of strong second half as sales of Roots product line pick up strongly
Annual profits will also be flat at about £1mln.
Superdrug was the largest retail outlet for Skinny Tan, with sales running at 13,000 tubes per month at one point and the brand becoming the chemist chain’s best-seller in its category.
Haris Choudry, executive chairman, said: "Whilst we expect our full-year results to be below our earlier expectations, InnovaDerma continues to perform strongly and profitably.
“Our online engagement continues to grow daily which is driving revenue through to our DTC (direct-to-consumer) platforms.
“We are in discussions with several new retail distributors and product innovation remains on track.
“The business remains robust with several product and market launches expected in the coming months to generate further growth."
Direct sales still doing well
Independent data group IRI estimates Superdrug’s Skinny Tan's revenue (including sub-brand Body Glow) grew by 210% for the 52 weeks to 24 February but by 60% in the last 12 weeks of the period.
Direct sales are still going well, said the company, which is looking for new distributors for the product.
New hair care range Roots is also powering ahead with sales 254% higher in the 12 weeks to February.