Cellmid Sheds Light On Scaling Of Distribution Channels

  • Dec 12, 2018 AEDT
  • Team Kalkine
Cellmid Sheds Light On Scaling Of Distribution Channels

On December 12, 2018, Cellmid Limited (ASX: CDY) has announced that the scheduled sales event on Japanese television shopping channel, QVC, delivered approximately $1.1 million sales revenue for the company, wholesale. Cellmid Limited is a life sciences developer who treats various cancers and chronic inflammatory diseases. Listed in 2005, it’s a Sydney based company.

The company’s retail sales now exceed $2.2 million, and on Japanese television shopping channel, Cellmid’s Jo-Ju branded Japanese’s hair growth product has proven to be one of the most successful cosmetics, and Cellmid has changed the packaging of Jo-Jo lotions to plastic bottles from the glass. Due to that company is expecting an increase in net profit margins by around 10%. Cellmid has also reduced manufacturing time from seven months to as little as three months. Due to that company can make better utilization of working capital.  

The company is expecting Quarter sales will be at a record of $2.2 million, subject to exchange rate variations between the US and Australian dollar and the Japanese yen. The company’s significant sales events, such as QVC in Japan which represent material components of sales revenue can lead to significant fluctuations in quarterly sales. The company has been developing distribution channels that can deliver more monthly sales. Additionally, Cellmid has been vigorously building distribution in other channels and geographies so that they can reduce their dependency on sales from TV shopping.

Cellmid must roll out its professional products from Evolis in the US in 2019 in premium retail outlets, and it is also one way to achieve more even monthly and quarterly sales. Evolis is a hair care treatment products which are a combination of nature and science which bring back your best hair. Evolis can be a revolutionary product by addressing global hair growth problems. Evolis can outperform the fast-growing anti-aging haircare market by generating 50% growth. Global hair loss market is forecasted to reach US$ 11.8 billion by 2024, while global haircare market is expected to reach US$ 88 billion, so there are substantial market opportunities to grab. Additionally, regular monthly orders from Fukangren Cellmid’s Chinese distribution partner are also expected to begin from the first quarter of FY2020.

As stated by Cellmid CEO, Maria Halasz, with around 50,000 QVC customers many of them are regular. They have a strong following for Jo-Jo products in Japan.

During the 2018 financial year, the operating results of the Group improved as revenue and other income for the group increased by 23% to $6,834,924 (2017: $5,560,121). A reduced net loss by 17% to - $3,732,615 (2017: - $4,482,273) trends toward profitability because operating cost is expected to be leveraged more efficiently.

In the last six months, the price of the company has shown a negative return of 45.26 percent as on 11 December 2018 and 25.71 percent down over the past one month. Cellmid Limited shares last traded at $0.310 (up over 19%) with a market capitalization of $21.87 million as on 12 December 2018.


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