InnovaDerma PLC (LON:IDP) saw its revenues for the half ended December 31, 2019, advance 28% year-on-year, led by the performance of its Skinny Tan beauty range.
The company, which posted sales of £5mln, up from £3.9mln, reminded investors that its financial performance would be heavily second-half weighted, “reflecting the peak tanning season”.
It added: “The momentum of the first half coupled with our forthcoming new category launch give us much confidence for the full year. The balance sheet remains healthy and with an increased retail footprint coupled with continued focus on our DTC (direct-to-consumer) channels in core regions, the company expects to generate strong revenue and profit growth in the second half of the year.”
In the update, InnovaDerma added a minor note of caution as it said its Roots haircare line had underperformed “due to competitive shelf positioning”.
Charles + Lee, the men’s skincare product, is “growing in popularity”, investors were told, while Roots “will receive extra marketing and product development focus” this year.
InnovaDerma said Skinny Tan sold well across its direct and UK retail channels and is proving popular in the US and Australia also.
“Product innovation remains key to the business and the first six months included the launch of the limited-edition Choc range in Superdrug, which resulted in exceptional demand and the continued success of Wonder Serum in Boots has provided a strong platform for the season ahead,” the company added.
“These initiatives have alleviated the effects of a softer UK high street retail environment and shelf space rationalisation, typical of seasonal products such as Skinny Tan.”