LONDON (ShareCast) - (Sharecast News) - Specialist cosmetics company Warpaint London reported "strong" 2021 trading in an update on Tuesday, which had continued into the first quarter of 2022.
The AIM-traded firm said group sales for the first three months of 2022 were about 60% ahead of the same period in 2021, with sales increases seen across all of its brands.

Gross product margins had also improved in the first quarter, despite increased costs in the supply chain, particularly in respect of freight.

"Sales of the Group's W7 branded products through Tesco stores continue to perform well, with more stores and space being allocated to the group across the Tesco estate," the board said in its statement.

"In February, the group successfully launched 45 W7 products in an initial 80 Boots stores and the brand is performing in line with group management's and Boots' expectations.

"The group has also secured a significant contract with a further major UK grocer to produce a range of all year-round products and Christmas gifting."

Warpaint's activities in the United States, meanwhile, were continuing to grow, aided by the group taking on a number of "experienced" US-based salespeople, resulting in six new accounts being opened in the market and several Christmas gifting orders being received from new customers.

The most notable order was from America's largest chemist chain, CVS, to be delivered in September.

"Online sales continue to accelerate and for the first quarter of 2022 were 29% ahead of the same period in 2021.

"The growth in online sales has been aided by sales of the W7 brand in China, following the launches in 2021.

"Online sales in China are growing month on month and the board believes that over the next 18 months online revenues in China will make a meaningful contribution to the group's online sales."

To aid the group's focus on the environment and sustainability, including a drive to reduce plastics and manage the group's waste, Kevin Laughton had been appointed as the group's packaging technologist and sustainability lead, the board added.

Warpaint described Laughton as an "experienced technical packaging professional" who would be focussed on ensuring that the group not only complied with increasing legislation in the area, but also that the group embraced the challenges "proactively" and ensured the use of "environmentally sustainable materials" while focusing on the core group strategy of producing affordable quality cosmetics.

An update on the company's outlook for the rest of 2022 would be provided with the release of the results for the year ended 31 December.

At 1041 BST, shares in Warpaint London were up 12.41% at 139.96p.

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