DS Healthcare Group Reports Second Quarter 2014 Financial Results


Pompano Beach, Fla., Aug. 15, 2014 (GLOBE NEWSWIRE) — DS Healthcare Group, Inc. (DSKX), a leading developer of personal care products, today announced financial results for the three and six months ended June 30, 2014.

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Net revenues were $3,744,000, up 9% over Q2 2013

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Gross margins increase to 52% from 48% in Q2 2013

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Gross profits increase to $1,942,000 up 21% over Q2 2013

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Net loss narrows 16% to $(633,000) from Q2 2013

Net revenues were $3,744,434 for the three months ended June 30, 2014, an increase of 9.1% over revenues of $3,431,154 for the three months ended June 30, 2013. Revenue growth in the second quarter was driven by double-digit, year-over-year sales growth at the Company’s Mexican subsidiary, as well increased sell-through in foreign markets. Domestic sales declined in the quarter due to $1 million in backorders that were pending completion and shipment prior to the end of the quarter.

Gross margin increased to 51.9% in the second quarter of 2014 from 46.7% in the same quarter of the prior year as a result of improved production efficiencies, improved pricing from suppliers, and cost cutting efforts including reduced payroll. Gross profits were up 21% to $1,941,536 in the second quarter of 2014, as compared to $1,601,086 in the second quarter of 2013. Selling and marketing costs increased by 34% to $1,194,238 in the second quarter of 2014 from $894,366 in the same period last year. General and administrative costs declined by 2% to $1,338,536 in the three months ended June 30, 2014, as compared to $1,369,558 in the same period of 2013. DS Healthcare’s net loss narrowed by 16% to $(633,339) or $(0.04) per basic and diluted share in the second quarter of 2014 from $(757,063) or $(0.06) per basic and diluted share in the same period of 2013.

For the six months ended June 30, 2014 net revenues were $6,429,397, a 13% decline from revenues of $7,392,846 for the six months ended June 30, 2013. Net revenue growth at the Company’s Mexican subsidiary, as well increased sell-through in foreign markets was offset by a decline in domestic sales due to backorders that were pending completion and shipment.

Gross margin increased to 53.3% in the first half of 2014 from 45.7% in the first half of the prior year, as a result of improved production efficiencies, improved cost from suppliers, and cost cutting efforts including payroll. Gross profits were up 1.4% to $3,423,981 in the first half of 2014, as compared to $3,375,769 in the first half of 2013. Selling and marketing costs increased by 31% to $2,164,260 in the six months ended June 30, 2014 from $1,651,364 in the same period last year. General and administrative costs decreased by 7% to $2,672,480 in the first two quarters of 2014, as compared to $2,878,234 in the same period of 2013. DS Healthcare’s net loss increased by 22% to $(1,479,120) or $(0.09) per basic and diluted share in the first half of 2014 from $(1,215,056) or $(0.10) per basic and diluted share in the same period of 2013.

On June 30, 2014 the Company had cash and cash equivalents of $773,055 and working capital of $3,264,514. Total stockholders’ equity on June 30, 2014 was $4,852,418.

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