Beauty manufacturer InnovaDerma warns on profits
Jul 10, 2020
Shares in InnovaDerma fell by as much as 22% on Friday morning as investors reacted to news of a “much-reduced” profit for the year to 30 June.
The UK developer of beauty, personal care and life science products blamed the impact of Covid-19 and a combination of higher online advertising costs, lower margins of DTC product bundles and the closure of bricks-and-mortar retail channels for the decline in profitability.
However, group revenues are expected to be up 2.3% against the previous year, reaching £13.2 million. InnovaDerma’s self-tanning brand Skinny Tan performed particularly well in the UK and US, with an increase in the number of customers of around 27% and 65% respectively.
InnovaDerma, which also develops and sells men’s skincare brand Charles + Lee, said: “The business has performed resiliently during the pandemic and the subsequent impact on earnings is disappointing. However, the business is financially sound with a strong solid capital structure and operating platform that is well-placed to respond to periods of uncertainty.
“As lockdown eases across many countries, the board continues to assess opportunities to strengthen the overall business with a clear focus on generating better returns on investment.”
The final results will be announced in September.
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