Cellmid updates on Japanese sales

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Cellmid (ASX:CDY) has announced that its scheduled sales event on the Japanese television shopping channel, QVC, delivered sales revenue of approximately $1.1 million.

Retail sales of the company's Jo-Ju branded Japanese hair growth products have exceeded $2.2 million. It said the products have become one of the most successful cosmetics ever on the Japanese television shopping channel.

The company it has recently changed packaging for the Jo-Ju lotions from glass to plastic bottles.

"As a result, net profit margins are expected to increase by around 10%, whilst manufacturing time reduced from seven months to as little as three months," it said.

"This in turn will allow better utilisation of working capital. Sales for the quarter are expected to be at a record $2.2 million, subject to exchange rate variations between the US and Australian dollar and the Japanese yen."

Cellmid said it has been working towards setting up distribution through channels that deliver more even monthly sales. It has also been "actively building" distribution through other channels and geographies to reduce the reliance on sales from TV shopping.

It pointed to plans to distribute évolis professional products in the US in 2019 through premium retail outlets. In addition, regular monthly orders by its Chinese distribution partner, Fukangren, are expected to commence during the first quarter of FY2020.

“With around 50,000 QVC customers, a large number of them regulars, we have a strong following for our Jo-Ju products in Japan,” said Cellmid CEO Maria Halasz. “We intend to build on this to maximise the potential for our recently launched évolis® products in multiple sales channels in Japan.”