Cellmid Limited (ASX:CDY, "Cellmid") released its financial results for 1H FY2020.
What are the key highlights?
- Consumer health revenue increased by 5.5% to $3.66 million (up from $3.49 million in H1 FY2019). Revenue was adversely impacted by the timing of a major export shipment to China in 1H FY2020, which is expected to ship during 2H FY2020.
- Cellmid established and expanded 18 new distribution channels across premium beauty retailers, pharmacies and television shopping channels in Australia, USA, Japan, Europe and Asia. The revenue impact of these new distribution channels is expected to accelerate growth in 2HY 2020 and onwards.
- The financial impact of these new distribution channels has started to show in the USA and in Australia, where sales were up 74% and 24% respectively on pcp. This is expected to accelerate in 2H FY2020 and in the following years.
- Cellmid is actively monitoring macroeconomic developments, including those in relation to the COVID 19 containment measures, and will advise the market immediately should there be a material impact expected on the Company’s operations or profitability.
- Guidance is confirmed for operating profitability in the consumer health business in FY2020 driven by revenue growth in new distribution channels.
- Lyramid’s intellectual property portfolio is earning attention from potential partners, with several aspects of midkine biology critical to drug development currently being studied together with research partners.