Skinny Tan producer looks golden after predicting profit increase of 355 per cent

Lucy White
Skinny Tan InnovaDerma
Haris Chaudhry, CEO of InnovaDerma, said the Skinny Tan brand was in a strong position for future growth

Anyone of a certain (young, female) demographic on social media will have most likely been bombarded with adverts for Skinny Tan, a self-tanning product which also claims to “contour and reduce the visible appearance of cellulite”.

While some may have grown bored of the impossibly slim and bronzed models posing with the product, Skinny Tan's aggressive direct-to-consumer platform has certainly produced results.

Its manufacturer InnovaDerma, a developer of beauty and personal care products, has today published a pre-close trading update predicting an overall revenue increase of 80 per cent and an increase in profit before tax of 355 per cent.

“Our ability to extend our flagship brand, Skinny Tan, to launch new products successfully and to expand our diverse portfolio of premium brands, together with a robust balance sheet, means we are strongly positioned for future growth,” said Haris Chaudhry, executive chairman and chief executive of InnovaDerma.

Skinny Tan was responsible for most of the growth, according to the company, given its “exceptional performance”. Overall revenues are expected to hit £9m in the full-year results, while underlying profit before tax will rocket to £1.28m.

Read more: InnovaDerma predicts maiden profit on Dragons' Den-backed Skinny Tan

Earlier this month InnovaDerma announced that beauty retailer Boots Ireland would start selling its products, and it confirmed it would partner with the London School of Beauty & Make-up to boost its spray-tanning sales.

Analysts reacted well to the news, as Niall Pearson at Hybridan said he would look for a further 57 per cent growth in revenues in 2018.

This would hike revenues to £14.1m, £12.6m of which they attributed to Skinny Tan.

The other chunk was attributed to products including a “Prolong” device to combat premature ejaculation, a range of skin-lightening creams, and a “Headmaster” helmet designed to reduce hair loss.

Given the momentum, plus new retail channels such as Boots Ireland and Asos, Pearson suggests that the impressive-sounding growth forecasts for the next year should be “undemanding”.

Related articles