19th Jun 2018 11:56
LONDON (Alliance News) - InnovaDerma PLC said Tuesday profit for its current financial year is expected to be "lower than previously expected" due to significant one-off investments.
Shares fell 5.9% on Tuesday and were trading at 112.94 pence each as a result of the news.
The company now expects pretax profit of approximately GBP650,000 for the year ending June 30. Last year it reported pretax profit of GBP1.0 million.
InnovaDerma said that investment in launching new brands in the last quarter and lower-than-expected revenue in the US for the month of June will mean pretax profit will not meet the company's expectations.
During the year revenue "increased strongly" to approximately GBP11 million, 24% higher than the GBP8.9 million reported a year ago, the company said.
In May, InnovaDerma achieved its "highest ever monthly revenue" due to its Direct to Consumer digital channel, that enables the business to leverage its creative social media campaigns and engage directly with consumers, it said.
The demand for company's best selling product, Roots, outstripped its supply in retail, where it has been out of stock for "significant periods", leading to lower revenue and profit, the company said.
"The company has taken significant steps to resolve the supply chain and is adding new inventory to meet expected future demand from retailers including Boots, the UK's leading pharmacy-led health and beauty retailer," InnovaDerma said.
The company also announced it secured several new distribution deals across Europe, Canada, Australia & New Zealand and India, Japan & South Africa.
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