IHL revenues soar following increased sales of Gameday mouthguards
Developer and distributor of mouthguards and teeth whitening products, Impression Healthcare (ASX:IHL) recently provided a promising operational update which resulted in a substantial share price rerating.
It should be noted that share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
As a backdrop, the company’s key products are Gameday Mouthguards, Instant Teeth Whitening (ITW) and Denti, all of which are successfully providing consumers with a more affordable option than traditional dental products.
With sales increasing more than 370% on a year-on-year basis in March, and quarterly revenue for the three months to March 31, 2017 exceeding full-year revenues for calendar year 2016, it wasn’t surprising to see the company’s share price spike more than 20%.
However, there could be more upside to come given that the company is only just starting to gain traction from extensive media campaigns which feature high profile ambassadors from popular sporting codes such as AFL, Rugby League, Basketball and Hockey.
The company has been preparing for a significant increase in demand for products having expanded its facilities, processes and laboratory inventories to enable the efficient delivery of 50,000 quality custom fit mouthguards per year.
Gameday aims to disrupt the mouthguard market and has developed a business plan whereby customers are able to take an impression of their teeth at home using the Gameday home impression kit, posting the impression back to Gameday and receiving a custom fit mouthguards in a short turnaround period.
Valuable partnerships with sporting bodies to underpin robust growth in 2017
Via its wholly-owned Gameday International subsidiary, IHL has entered into a number of partnership agreements with sports bodies at state and national level. This has taken its total marketing reach to more than 1 million members and participants of grassroots sporting associations.
These partnerships were established ahead of the commencement of the 2017 sports season, providing the group with direct marketing access to its target customer base.
Given that the company’s addressable market was much smaller in 2016 the traction gained from agreements forged with numerous sporting bodies in the last 12 months will reflect in the company’s sales growth figures in 2017/18.
Consequently, the substantial increases in revenues and customers illustrated in the following charts is likely to be surpassed in the coming 12 months.
IHL now a multi-product company
In March, the company made the transition from a single product company as it launched the Denti and ITW brands, facilitating expansion into the teeth whitening industry.
ITW is positioned as a mainstream, at home, teeth whitening product, providing consumers with a cost-effective, custom fit, at-home teeth whitening solution at a competitive price.
Denti is positioned as a premium teeth whitening product and includes a range of teeth whitening and beauty products. It will be marketed as a high quality premium brand to appeal to the discerning customer seeking a luxury product.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.