A look at Skin Elements’ (ASX:SKN) journey in FY22 - Kalkine Media

Highlights

• Skin Elements advanced major business activities related to SuprCuvr in FY22.
• Soleo Organics’ High-Performance Coconut Sunscreen and Face Moisturising Sunscreen were selected as finalists in the Clean Beauty Awards for 2022.
• During the financial year, the company's revenue from ordinary activities was up by 387.75%.

Health and Wellness company Skin Elements Limited (ASX:SKN) ended FY22 with major development activities related to its latest product SuprCuvr. The company also raised funds to fast-track business development. 

The ASX-listed Australian company is focused on designing and formulating natural, organic, health and wellness products for the global market. Let us look at the major activities undertaken by SKN in FY22.

Skin Elements (ASX:SKN) making a mark amidst growing demand for natural health and wellness products

1. Market prospect for SuprCuvr

SuprCuvr, made of 100% plant-based organic certified formula, is a hospital-grade disinfectant. Registered under TGA, the product has proven efficiency against COVID-19 and other germs.

The company believes that these properties of SuprCuvr present a significant market opportunity for the product, including in large-scale settings employing disinfectants.

Globally, SuprCuvr is the first and only approved disinfectant with a 99.99999% efficacy against COVID-19. SKN has now started developing marketing programs to drive revenue through its distribution networks and online retail store.

Following are the developments made by the company concerning SuprCuvr

Distribution agreements

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Pacific Health's existing health distribution networks will enable Skin Elements to drive sales in Australia and New Zealand and strengthen operations to implement its global commercialisation strategy.

Skin Elements has delivered over 88,000 units of SuprCuvr with a value of over  AU$1.2million. Pacific Health has paid AU$200k and will pay the remaining balance over the coming months.

The company is also tapping several distribution opportunities in other countries such as New Zealand and Hongkong. It is also investigating options in Indonesia and Taiwan.

Production extension and marketing – Skin Elements is also working towards expanding the product range of SuprCuvr. The company received positive results from the independent laboratory tests on the product's anti-fungal capacity. It presents a good potential to expand SuprCuvr’s product range, and the company intends to progress these market opportunities.

Further, the company has adopted different marketing strategies and updated the packaging of SuprCuvr to reduce costs and simplify production.

2. Soleo Organics' sunscreen selected for Clean Beauty Awards

During the year, Skin Elements has worked towards driving higher sales volume and international sales of Soleo Organics. It has started discussions for distribution agreements in the United Kingdom.

The Soleo Organics sunscreen range is now fully available, and SKN has rewamped its online store websites to increase sales through these channels and to garner more international sales and drive larger volume sales.

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3. A new addition to the Board – Skin Elements appointed Mr Lee Christensen to the Board as a Non-Executive Director.
4. Research & Development (R&D) Rebate – Skin Elements received an R&D rebate of AU$989k for 2021 and recognised AU$984k rebate for R&D expenses invested in the twelve months to 30 June 2022.
5. AU$2.1 million from placement – Skin Elements completed a placement of 26,250,000 ordinary fully paid shares at AU$0.08 a piece and raised cash of AU$2.1 million. The funds were used in strengthening SuprCuvr business and the working capital.
6. Equity funding worth AU$20million – On April 2022, the company announced the agreement with LDA Capital for an equity funding facility under which the latter has agreed to provide Skin Elements with up to AU$20million over the coming 36 months.

Financial update

During the financial year, the company's revenue from ordinary activities went up by 387.75% to AU$1,408,330.

Stock information

At the time of writing this article, the share price of SKN was AU$0.019 apiece.