Australian life sciences company Cellmid (ASX: CDY) has reaped a revenue of approximately $1.1 million from a scheduled sales event for its Jo-Ju hair growth products in Japan.
The figure will contribute to the company’s expected record sales revenue for second quarter 2019 of more than $2m.
Cellmid’s promotion of the repackaged Jo-Ju line on Japan’s QVC network is believed to be one of the most successful cosmetics sales events ever on the shopping channel.
The new packaging involves plastic rather than glass bottles and has cut the company’s manufacturing time from seven to three months.
Cellmid said net profits from the repackaging exercise are expected to increase by 10%.
This, in turn, will allow better utilisation of working capital.
Total sales for the quarter are expected to be $2.2 million, subject to exchange rate variations between the US and Australian dollar and the Japanese yen.
New distribution channels
While major sales events currently account for a strong percentage of Cellmid’s sales revenue, the company has been working towards establishing new distribution channels to further increase monthly sales.
It has also been actively building distribution in geographical regions other than Japan to reduce reliance on sales from TV shopping.
This includes the scheduled rollout next year of the évolis hair loss products line in premium retail outlets across the United States.
“We have a strong following of regular customers for our Jo-Ju products in Japan,” said Cellmid chief executive Maria Halasz.
“We intend to build on this to maximise the potential for our recently-launched évolis products in multiple sales channels in the same region as well as internationally.”
New Zealand market
Last month, Cellmid added a new market to its portfolio when it appointed New Zealand’s Pharmaceutical Services as an exclusive regional distributor for products under the évolis and Fillerina brands.
The company is owned by the Pharmacy Guild of New Zealand and provides warehousing, product distribution and sales support for more than 1000 pharmacies across the country.
During the first twelve months of the agreement, which has no fixed term, Cellmid and Pharmaceutical Services will collaborate to increase distribution and sales and will develop minimum sales targets for subsequent periods.
At mid-afternoon, shares in Cellmid were trading 19.23% higher at $0.310.