InnovaDerma posts maiden profit ahead of Skinny Tan launch into US

31st Oct 2016 11:02

(ShareCast News) - As well as announcing soaring full year profits, InnovaDerma has secured a US distribution deal for its Skinny Tan self-tanning lotion after it proved a hit in the UK and Australia.Skinny Tan, which sets itself apart from other self-tan by claiming to mask the appearance of cellulite, will be sold online on Amazon's Soap.com website and Walmart's Jet.com, plus a trial agreement for 655 of GNC's 6,000 nationwide health and wellness stores.A tenfold annual surge in sales of Skinny Tan helped the Australia-based group to lift total sales eightfold to AU$8.4m in the year to 30 June, with gross profits up to AU$4.8m from AU$0.7m in the previous year. At the pre-tax level, InnovaDerma, which floated in London in September, broke even at AU$0.47m, versus a loss of AU$0.9m last time, though this news had been flagged earlier this month.Skinny Tan, the group's lead product, has expanded from 14 to 25 products since it was acquired in May last year, launched in Superdrug in the UK in February, plus distribution agreements with Olive Young, Korea's largest health and beauty store chain, and Australia's 320 Chemist Warehouse stores, together with direct-to-consumer marketing through social media channels that built on the founder's eye-catching appearance on the Dragons Den show.Last week the decision was announced that production would be moved to the UK from Australia "to improve supply chain and operating margins", while further Skinny Tan brand extensions are expected to be rolled out soon, while other new products in hair care, hair loss treatment and skin rejuvenation are planned for release in 2017."This has been a year of transformation growth for the group with exceptional financial and operational results driven by a highly disciplined and agile approach," said executive chairman Haris Chaudhry."Our strategic decision to grow Skinny Tan, a premium self-tanner brand, has enabled us to expand our retail and distribution network and, importantly, provided us with a scalable business and a global supply chain which we can leverage to continue to grow our brands across the group and drive future business performance."He said since the period end the group has continued to go "from strength to strength", adding: "We are trading profitably and the board looks to the future with confidence and optimism."