IDP.L Regulatory News (IDP)

LEI: 213800WRAP6W8VDL6B38

InnovaDerma PLC

("InnovaDerma" or the "Company")

Trading update

InnovaDerma (LSE: IDP), a UK developer of life sciences, beauty and personal care products, announces a trading update for the six months ended 31 December 2018.

The Company generated revenue of £3.9m (H1 FY2018: £4.2m) in the period under review. The modest decline in the first six months was largely due to challenges in the DTC channel which have now been addressed. Increasing competition on social media platforms and changes to Facebook's algorithm, prioritising personal engagement over businesses and brands, softened revenue generated through our DTC platform. We have now revised our engagement strategy on Facebook and diversified onto other platforms such as Instagram and Google. These actions have begun to gain traction, receiving positive customer responses and generating good revenue growth in recent weeks.

Despite the retail headwinds in the UK, sales through this channel grew by 36%, driven predominantly by the Roots brand which was launched 15 months ago. Pleasingly, during Christmas week, Roots delivered its best sales performance to date in Boots' stores whilst not on promotion.

The second half of the year has begun strongly through the DTC channel and detailed planning for the major launch of Skinny Tan in Boots is being finalised with the retailer. Opening orders will be received in the coming weeks, to be on its shelves (1,305 stores) from mid-February/early March 2019 to capitalise on the seasonal peak in self-tanning sales.

The Charles + Lee brand performed very well in Australia and delivered revenue growth of 50% compared to the same period last year. The brand has received CE Mark regulatory approval, enabling the brand to be marketed and sold within the EU. The Company is in early discussions with a number of UK retailers to range the brand.

The new inventory for both of our Life Science products, Prolong and Hair Helmet is now available and we will begin to promote both products in key geographical markets. The promotion costs have been fully budgeted for and will be flexed in response to revenues.

As indicated at our Annual General Meeting, we expect the second half of the year to be disproportionally higher than in previous years given the phasing of our substantially wider distribution network. We remain confident that that this will be a year of substantial growth across the business,

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Further enquiries

About InnovaDerma:

InnovaDerma PLC (LSE: IDP) specializes in the research, manufacture and marketing of clinically proven products in life sciences, beauty and personal care products. InnovaDerma has presence in Europe, US, Australasia, Asia and Africa. 

www.innovaderma.com