innovaderma plc · 2020. 2. 25. · innovaderma plc corporate presentation about innovaderma...

INNOVADERMA PLC CORPORATE PRESENTATION

INNOVADERMA PLCCORPORATE PRESENTATION


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Disclaimer

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CONTENTS

INNOVADERMA PLC CORPORATE PRESENTATION 3

• About InnovaDerma p. 4

• Our brands p. 5

• Strategic aims p. 8

• Delivering on our strategy p. 9

• Our growing retail footprint p. 11

• DTC platform p. 12

• Interim results p. 13

• Sustainability drives p. 15

• Board of directors p. 16

• Conclusions p. 17

• Appendix p. 18

INNOVADERMA PLC CORPORATE PRESENTATION INNOVADERMA PLC CORPORATE PRESENTATION

ABOUT INNOVADERMA

Beginnings • Founded in 2013 • Acquires Skinny

Tan for AUS $50,000 in 2015

Listing • Lists on the LSE,

raises c.£1.3m• Revenue grows

to c.£4.3m and op.profit of £0.2m

Acquisitions• Acquisition of

Charles + Lee and Prolong

• Raises £4.4m

Expanding retail footprint • Skinny Tan in Boots• Revenue grows to

£10.7m, op.profitof £0.7m

Growth in DTC• DTC delivers record

orders• Revenue grows to

£12.9m and op profit of £1.4m20182016

20172013-2015 2019

We are an innovative business, dedicated to delivering high-performance products across all of our brands in beauty, personal care and life sciences.

2020

Continued growth• Launch of Nuthing• Revenue and gross

profit up 32.8% and 240 bps YoY respectively

4


Skinny Tan: Top 3 self tanning brand in the UK

Charles + Lee: Affordable alternative premium range of

men’s grooming products

OUR BRANDS

INNOVADERMA PLC CORPORATE PRESENTATION 5


Nuthing: New hair removal product provides quick, easy and

painless hair removal

Roots: Premium hair care range which uses a three-step

system to reduce hair loss

OUR BRANDS

6

INNOVADERMA PLC CORPORATE PRESENTATION 7 INNOVADERMA PLC CORPORATE PRESENTATION

OUR BRANDS

Prolong: The world’s only FDA-

cleared medical device for

premature ejaculation

Growlase: clinically proven

revolutionary innovation in

reversing hair loss


STRATEGIC AIMS

Utilise digital and marketing strategy to

grow DTC channels

Innovation - new products, new

categories

Leveragecommercial

opportunities secured with retail

partners and distributors

Grow key export markets

INNOVATION EXPORTRETAIL DIGITAL DIVERSIFICATION SHAREHOLDERS

Building a sustainable and

diversified business model

Generate shareholder value

8


DELIVERING ON OUR STRATEGY (FY)

FY 2018 FY 2019FY 2018 FY 2019FY 2018 FY 2019

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£10.7m

£12.9m

57%

63%

3p

7p

Total Revenue Gross Profit Margin Adjusted EPSAdjusted EBITDA

FY 2018 FY 2019

£0.8m

£1.4m

Free Cashflow

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FY 2018 FY 2019

-£2.0m£0.2m

+21%+600bps

+75% +133% +£2.2m

9


-2

0

2

4

6

8

10

12

14

2016 2017 2018 2019 HY2020

Revenue Operating Profit

DELIVERING ON OUR STRATEGY

44% CAGR

10


OUR GROWING RETAIL FOOTPRINT: STORE NUMBERS


0

500

1000

1500

2000

2500

450

2018 2019 2019 20192018

786 806

2100

277 277

2019

714

480

2018 2019 2018 2019

6936

11

00

2018 2018


DTC PLATFORM – OUR ENGINE FOR GROWTH• Our DTC strategy is to ensure a multi platform presence with partners such as Facebook, Instagram, Google, Ad Roll and Taboola

• Use technology to enhance ROI

• Deploy large database to cross market between portfolio brands

• Highly GDPR vigilant and compliant

• Continue to grow transaction volumes and AOV

• Continue to grow the customer base – up by 48% in the last 12 months to c.680k

0

100000

200000

300000

400000

500000

600000

700000

800000

DTC Customers

12

Dec 2018 Dec 2019

+48%


INTERIM RESULTS HIGHLIGHTS

Operational Highlights

• Our DTC channel accounted for 56% of total revenue (HY2018: 59%)

• Skinny Tan customer base has increased by 12% to 683k since June 2019

• Skinny Tan sales through DTC up 22% on the same period last year with the brand successfully relaunched in US and Australia

• Exceptional success of Wonder Serum and Choc range in Boots and Superdrug respectively

• Charles & Lee performance robust and benefitted from new product development

• Life Sciences delivered 71% increase in revenue from DTC Channels

13

HY2019 HY2018 %change

Revenue £5.1m £3.9m +32.8%

Gross profit £3.1m £2.2m +40.1%

Gross margin 60.7% 58.3% 240bpProfit (Loss) before tax (£0.3m) (£0.4m) +18%

Basic EPS (pence (2p) (2p) -

Cash and cash equivalents £0.4m £0.7m -42.9%


INTERIM RESULTS HIGHLIGHTS

14

Outlook• Continued organic growth across our portfolio of brands

• Launch of Nuthing, a new brand and category for hair removal to disrupt a sizeable market

• Focused on continued product development across brands for rollout in H2

• Maximise global applicability of brands and seek international retailers/distributors

• Continue to invest in our DTC platform to drive revenue and profitability

• A stable of excellent brands and new extensions in place to deliver strong cash generation, revenue and profit growth in H2

• As in previous years, overall performance remains heavily weighted towards the second half and new product launches will add to this

• Trading in H2 is in line with management expectations with our first seven weeks of FY2020 trading 17% ahead of the same period last year


SUSTAINABILITY DRIVES

Working towards a sustainable future

• All skin and haircare brands are cruelty free and 100% vegan friendly

• Majority of packaging is recyclable and minimal by design

• Specifications amended to eliminate excess packaging

• Recycled plastic to be introduced progressively

• Reviewing formulations to eliminate unnecessary ingredients

• New category utilises sugar cane tubes - 100% biodegradable and sustainable

15


BOARD OF DIRECTORS

JOE BAYERExecutive Chairman

• Three decades of senior experience at consumer and healthcare companies

• Previous CEO experience• Has advised listed and private

companies on strategy, capital markets, restructuring and business performance

KIERAN CALLANChief Executive Officer

• More than three decades of FMCG experience

• Previous CEO experience • Strong track record of

delivering growth

RODNEY TURNER Non-Executive Director

• Strong clinical and regulatory experience

• Provides strategic advice to well known Pharmaceutical and Medical Device companies

ROSS ANDREWS Non-Executive Director

• More than 30 years’ corporate advisory experience working with listed companies

• Senior adviser to the NEX exchange

15


CONCLUSIONS

• Maturing business but retaining its ability to be agile, innovative and entrepreneurial

• Near term strategic priorities:

• Drive organic growth in key brands

• New category development to augment organic growth

• Focus on key export markets: USA + Canada, Australia and EU

• Investment in Artificial Intelligence and optimisation technology to drive ROI in the DTC channel

• Evaluate relevant, value accretive acquisitions

16


APPENDIX

17


CORPORATE SUMMARY

Listing London Stock Exchange, Standard Listing

Shares in issue 14.49m

Free float 13.86m

P/E 7.87

EPS 7p

D/E Ratio No debt

Major shareholders Edale Europe Absolute Master Fund: 9.11%Miton: 4.9%

Lee Family: 3.7%Senior Management: 2.12%

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innovaderma plc · 2020. 2. 25. · innovaderma plc corporate presentation about innovaderma...

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