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Skin Elements (ASX:SKN) - Executive Chairman, Peter Malone - The Market Herald
Executive Chairman, Peter Malone
Source: Business News
  • Prolonged COVID-induced restrictions and lockdowns in Australia's east have failed to boost sales across Skin Element's (SKN) sanitiser range
  • The Invisi Shield hand sanitiser, which SKN produces without alcohol and fragrances, accounted for just nine per cent of the company's sales since June 30
  • Skin Elements says the range, which was announced in April and went live in June, sold 1641 units for $6549 since FY21 began
  • Looking ahead, the company expects the natural elements of its sanitiser suite — which sets it apart from its main competitors — will be the driving force behind future sales
  • Meanwhile, SKN has also signed on with another sanitiser distributor, targeting $2.4 million in sanitiser sales within three years
  • SKN shares remain suspended from trade, and last traded for eight cents each in May

Prolonged COVID-induced restrictions and lockdowns in Australia's east have failed to boost sales across Skin Element's (SKN) sanitiser range.

The Invisi Shield hand sanitiser, which SKN produces without alcohol and fragrances, accounted for just nine per cent of the company's sales since June 30.

Speaking to the result, Skin Elements said it had been in touch with its four key Australian and New Zealand distributors, which advised that "many of the 10,000 retail outlets serviced by them are holding significant stocks of alcohol
based sanitisers."

Skin Elements says the sanitiser range, which was announced in March and went live in June, sold 1641 units for $6549 since FY21 began.

Looking ahead, the company expects the natural elements of its sanitiser suite — which sets it apart from its main competitors — will be the driving force behind future sales.

In today's company update, the consumer stock also tracked the sales performance of its other natural product ranges. Over the last four months, the company brought in just over $70,000 from product sales.

PapayaActivs

SKN's PapayaActivs range has brought in the most capital since June 30, accounting for $45,310 of the company's sales.

Formulated with McArthur pawpaw extract, the PapayaActivs brand is Skin Element's natural skin and hair care range.

It includes a suite of cleansers, moisturisers, shampoos and conditioners for everyday use, along with a targeted range to treat conditions like eczema, psoriasis and dermatitis.

Since FY21 began, SKN has sold over 1600 units in the PapayaActivs brand.

Soleo Organics

While it only hit shelves in September, Skin Element's Soleo Organics sun-care line brought in its second-highest sales figures. From the end of June, the range sold close to 1300 units, earning the company $19,147.

The Soleo Organics range includes a suite of natural sunscreens, all of which are formulated with physical sunblocks like zinc oxide. Recently, the brand added a coconut-based sunscreen to the line.

Distribution agreement

Although sanitiser sales have brought in the least income out of its three product ranges since June 30, Skin Elements signed on with another distributor in August.

Under their agreement, Prudential Consultants and SKN are targeting $2.4 million in sanitiser sales within three years.

"Skin Elements notes that neither it nor Prudential Consultants has previously
achieved sales of Invisi Shield Organics historically at the proposed levels, however, Prudential Consultants has expressed confidence to the Company that it can achieve these targets," the company explained.

"Notwithstanding this, investors should be aware that these targets are not forecasts and there can be no guarantee that they will be achieved," it continued.

Holista CollTech partnership

Rounding off today's company update, Skin Elements told the market its partnership with healthcare stock Holista CollTech (HCT) was still up and running.

To date, the value of the agreement's deliveries and orders equal $219,901.

SKN shares remain suspended from trade, and last traded for eight cents each in May.


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