Galway dental products company Spotlight Oral Care, founded by sisters and dentists Lisa and Vanessa Creaven, is targeting sales of $10m in its core growth market, the US, this year.
That is according to new consolidated accounts filed by the Creavens' Spotlight Oral Care Ltd which show that it recorded operating profits of €642,151 in the 12 months to the end of June 2024.
The operating profits followed an operating loss of €346,787 in 2023 and the operating profit was achieved despite overall revenues decreasing by €1m or 6% from €18.16m to €17.1m.
The group recorded a pre-tax loss of €870,671 after taking into account interest costs and similar charges of €1.5m which was largely made up of a fair value movement of €1.46m in group Cumulative Convertible Redeemable Preference (CCRP) shares during the year.
The pre-tax loss of €870,520 followed pre-tax losses of €786,912 in fiscal 2023.
The group generates its revenues from supplying premium oral hygiene products under the "Spotlight" and "Made by Dentists" brands.
In an upbeat directors' report, they state that "the group achieved a positive operating profit position in FY 2024 and continues to build a profitable and resilient business, with a well-established presence across both physical retail and online channels in Europe, the UK and the US".
They add that "while 2024 revenues experienced a modest year-on-year decline of 6% the group continued positive growth in the US, its core growth market, recording year-on-year revenue growth of 31% and is targeting revenues of c. $10m for FY 2025".
They state that in addition, the group achieved a substantial increase in operating profitability.
On its future developments in the US, the directors state that "in the US, the business is focused on building on current momentum with continued retail expansion, digital expansion on Amazon.com and deeper penetration across online sales channels such as target.com".
They state that "with proven product-market fit and a growing customer base, the US remains a priority growth region moving forward".
On the 2024 performance, they state that "gross margin improved significantly from 46.76% in 2023 to 57.54% in 2024, highlighting the business' focus on operational efficiency".
They state that the group's operating profitability "has been underpinned by disciplined cost optimisation, resulting in a stronger EBITDA position and a more scalable operating model".
They state that "during 2024, the group continued the successful execution of its growth strategy in the US market. Following a strong launch in 2023, the Made by Dentists brand is now widely available in one of the largest and most influential US retail chains".
The directors start that "the brand continues to gain traction with consumers and as a result the group has successfully expanded the product range sold. Post year end the group successfully launched Made By Dentists with a key online retail channel".
The directors state that "to drive and achieve growth in the US, the group resources are being focused on this market as it will continue to scale across numerous channels".
They state that "in the European and UK markets the group will continue to enhance its existing market position through new product launches and optimisation of distribution channels".
Numbers employed dipped by two to 44 as staff costs increased from €3.65m to €3.83m.
Pay for key management personnel comprising Lisa Creaven, Vanessa Creaven, Joel Palix and Thomas Rinks last year increased from €505,739 to €765,772.
At the end of June last, the group had a shareholders' deficit of €4.2m.
Reporting by Gordon Deegan
