- Cellmid (CDY) is trading slightly lower this afternoon after revealing softer revenues and steeper losses over the first half of the 2020 financial year
- Revenue for the half-year fell by 24 per cent compared to the previous corresponding period, while Cellmid’s loss after tax deepened by 71 per cent
- However, the company says several Chinese export orders have been shipped and the revenue for these orders will be recorded during the second half of the financial year
- On top of this, Cellmid typically receives a government research and development (R&D) tax credit in the first half of each financial year, but this, too, is still on the way
- Nevertheless, Cellmid admitted first-half sales revenue was impacted by a change in scheduling to an important Japanese television sales event
- The company insists it still saw significant growth in online sales in Australia and the U.S. and through third-party channels
- Shares in Cellmid are down 3.06 per cent this afternoon to trade at 9.5 cents per share
Cellmid (CDY) is trading slightly lower this afternoon after revealing softer revenues and steeper losses over the first half of the 2020 financial year.
Compared to the same time period in 2019, the anti-ageing specialist’s revenue was lower by 24 per cent to just under $2.8 million for the six months to the end of December 2020. For reference, revenue for the six months to the end of December 2019 was $3.66 million.
At the same time, Cellmid’s loss after tax deepened by a heavy 71.3 per cent to just under $2.4 million compared to the $1.4 million over the previous corresponding period.
However, though the figures look bleak at first glance, Cellmid said it’s not so much a case of less money coming into the business but more a case of awkward timing.
Particularly for the company’s Chinese export orders, Cellmid said several orders have been shipped and the revenue from these orders will be recorded during the second half of the 2021 financial year.
On top of this, the Japanese QVC television shopping channel changed the schedule for a major sales event that typically books Cellmid over $1 million in sales.
The “Today’s Special Value” event would ordinarily run twice a year for one full day, but Cellmid said the scheduled December 2020 event was changed to a three-hour event instead.
As such, while sales margins improved, revenue from the event was softer than usual.
To top it off, Cellmid typically receives a research and development (R&D) tax credit from the Australian Government in the first half of each financial year, but this year Cellmid is expecting to receive the rebate during the second half.
Nevertheless, despite the lower half-yearly numbers, Cellmid said it saw important improvement across several key performance indicators like conversion rates, transaction numbers, average transaction size, and online revenue.
In fact, the company said its online business in the U.S. and Australia has improved and online sales through third-party channels have increased “significantly”.
Cellmid sells functional cosmetics and consumer health products for haircare, skincare, and general wellbeing.
Shares in Cellmid dipped as low as 5.1 per cent around midday AEDT but have since taken back the worst of their losses. At 2:14 pm AEDT, CDY shares are down 3.06 per cent to trade at 9.5 cents each.