Sisram Medical Ltd. (the “Company” or “Sisram”, stock code: 1696.HK; together with its subsidiaries collectively referred to as the “Group”), a global consumer wellness group, featuring a first-of-its-kind synergistic ecosystem of business building blocks and consumer-focused branding, ranging from Energy Based Devices, injectables, aesthetics and digital dentistry, personal care and more, today announced its unaudited consolidated interim results for the six months ended June 30, 2022 (the “Reporting Period“). Sisram will host a corresponding conference call at 8:30 p.m. PT / 8:30 a.m. ET on August 22, 2022 (Monday) to discuss the interim results and provide a business update, registration shown as below.
FINANCIAL HIGHLIGHTS
- Revenue was US$174.5 million, representing an increase of 39.3% compared to the six months ended June 30, 2021.
- Profit for the period attributable to owners of the parent company was US$20.6 million, an increase of 25.9% compared to the six months ended June 30, 2021.
- Revenue derived from direct sales for the period represented 64.8% of total revenues, compared to 59.7% for the corresponding period in 2021.
- The Company saw significant growth in all regions, mainly in North America and APAC. North America’s revenue accounted for US$69.9 million during the Reporting Period, representing an increase of 42.2% from US$49.1 million for the corresponding period in 2021. Revenue generated from APAC increased by 42.0% to US$47.9 million in the Reporting Period from US$33.7 million for the corresponding period in 2021.
MAJOR ACHIEVEMENTS IN H1 2022
- Consistent investment on R&D, successful introduction of three new products: “Alma TED™,” “CBD+ Professional Skincare Solution™” and “LMNT one™”.
- Alma TED™- an ultrasound-based system with a propriety tip engineered with Impact Delivery™ that offers a non-invasive, non-traumatic option to address the market’s growing hair loss concerns.
- CBD+ Professional Skincare Solution™- the first professional skincare solution that combines the scientific benefits of full-spectrum cannabidiol (CBD), shown to visibly reduce redness and calm the appearance of stressed skin, which will be used as consumables and mainly applied after the treatment of Energy Based Device to enhance the results.
- LMNT one™ integrates the power of the unique NIR 830nm wavelength and 630nm, utilizing coordinated micro pulses. These clinically proven wavelengths effectively promote skin elasticity and boost collagen production, offering products to all users in the comfort of their home.
- Diversified and enriched injectable business lines: Sisram has invested in a company focused on research and development of silk fibroin-sodium hyaluronate composite gels and facial implant thread products. An innovative regenerative material new to the injectable market, silk fibroin and its derivatives are expected to enrich Sisram’s comprehensive portfolio and solution offerings for the wellness ecosystem.
- Expansion of aesthetics and digital dentistry business lines: An investment in innovative bio-glass materials, combined with high-end technologies, is enhancing Sisram’s product portfolios with computer-aided aesthetic design, restorative products, and non-invasive veneers.
- Established a new direct office in the United Kingdom to support the rapid growth in demand for Sisram products and services on the European continent.
- Enhanced brand awareness and improved customer stickiness: We discussed industry developments and trends with hundreds of physicians, academics, and business partners worldwide at Global Alma Academy Events. Meanwhile, the Company continuously improves the global customer experience, reaches potential customers from multiple channels, achieves a considerable conversion rate, and explores cross-selling opportunities in the wellness ecosystem.
Solid Financial Performance Reflected by Sustainable and Profitable Growth
In the first half of 2022, Sisram recorded revenue of US$174.5 million, representing an increase of 39.3% compared to the corresponding period in 2021. The increase is primarily attributable to Sisram’s continued expansion of its existing distribution network, the successful introduction of new products, and new B2C activity.
Profit for the period attributable to owners of the parent company was US$20.6 million, increased by 25.9% as compared to the corresponding period in 2021. During the first half of 2022, the Group’s gross profit was US$99.6 million compared to US$71.5 million for the corresponding period in 2021, representing an increase of 39.4%, driven by the Company’s continued expansion of direct sales and launches of high-profit products into leading markets. During the period, revenue derived from direct sales amounted to 64.8% of total revenues versus 35.2% of the total revenues attributed to sales via distributors.
During the Reporting Period, the Group recorded profit before tax of US$23.1 million and recorded profit for the period of US$20.5 million, representing an increase of 14.6% and 18.2%, respectively, when compared to the corresponding period in 2021. The increase in profit before tax and profit for the period was mainly due to the increase in sales volume and the increase in gross profit.
During the Reporting Period, the Group recorded an adjusted net profit of US$24.9 million, representing an increase of 27.5% when compared with the corresponding period of 2021.
Steady Growth Across All Regions with Enhanced Ecosystem Brand Family
As a multinational entity, Sisram makes significant efforts to adjust operations in its headquarters to local country/state characteristics, while simultaneously building an ecosystem brand experience. During the Reporting Period, revenue in all regions increased substantially, with North America demonstrating an increase of 42.2%, APAC with an increase of 42.0%, Middle East and Africa with an increase of 40.5%, Latin America with an increase of 38.2% and Europe with an increase of 28.9%.
Regarding diversified ecological product portfolio, Sisram will continue introducing innovative technologies and products through on-going R&D investment. With the expansion of direct sales, we can also effectively collect customer feedback to close the loop with R&D and meet the needs from different regions. Eventually enhance the impact of our global brand family.
OUTLOOK FOR H2 2022
In the second half of 2022, Sisram intends to follow its constructive disruption strategy by evaluating and implementing near-future technologies, ventures, and synergies to bolster its global position. The Group’s efforts throughout 2022 will strategically focus on lean innovation, digitalization, and wellness ecosystem building.
Upholding its corporate vision of “Enhancing Quality of Life,” Sisram will continue to establish its global positioning as a one-of-a-kind business group in the greater wellness industry by enhancing global direct operations and exploring untapped direct opportunities in North America, APAC, Europe, and the Middle East. In addition, the Company will expand Energy-Based Device product offerings into greater wellness areas with a leading product focus on global sexual wellness, as well as continue investing in research and development in injectables and aesthetics and digital dentistry business lines in China.
Looking forward, Mr. Liu Yi, Chairman and Executive Director of Sisram, commented: “Sisram has always adhered to customer-centric philosophy, providing consumers and beauty-seekers with effective wellness solutions. Looking back on the first half of the year, Sisram has continued to consolidate its global layout in an orderly manner. Looking forward to the second half of the year, we will stick with the company’s mission, promoting the synergy of four business lines and providing customers with diversified and beneficial wellness solutions around the world.”
Mr. Lior Dayan, CEO of Sisram and Alma, said: “During the first half of 2022, significant efforts were invested in ramping up production to accommodate the growing global demand. For the second half of the year, we will focus on following our ecosystem’s strategic planning by strengthening our R&D capabilities, products portfolio, and distribution channels, to achieve internal organic growth as well as external expansion.”
Conference Call
Sisram will host a conference call at 8:30 p.m. PT / 8:30 a.m. ET on August 22, 2022 (Monday) to discuss the interim results and provide a business update. Individuals interested in listening to the conference call may do so by registration using the following link:
After registration, you will receive dial-in information immediately. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.
A replay will also be available on Sisram Medical’s Event’s page at:
Events & Presentations – Sisram
About Sisram Medical Ltd.
Sisram Medical Ltd. (1696.HK) is a global consumer wellness group, featuring a first-of-its-kind synergistic ecosystem of business building blocks and consumer-focused branding, ranging from Energy Based Devices, injectables, aesthetics and digital dentistry, personal care and more. The company is majority-owned by Fosun Pharma, one of China’s leading healthcare groups. On September 19, 2017, Sisram Medical went public, becoming the first Israeli company ever to trade on the Main Board of the Hong Kong Exchange.
Sisram Medical – Enhancing Quality of Life
