Additionally, the company’s new Alpha Skin Care 6% Skin Lotion had been approved by the National Medical Products Administration (NMPA), formerly the China Food and Drug Administration, or CFDA.
“While we’re disappointed with our sales in the first half of 2019, we are pleased to have successfully secured the NMPA’s approval for our new 6% Body Lotion,” commented Mark Goldstein, chief executive officer. “After navigating the NMPA’s regulatory changes, recently required product modifications and product approval process, we look forward to resuming sales of our Alpha products into China. This unexpected delay, combined with the competitive market for our 7th Heaven distributed products, has been primarily responsible for our low first half sales. While we are pleased our Alpha Skin Care products are now positioned for distribution into China, we understand that recent US-China trade issues and particularly the newly enacted tariffs have made the China markets much more challenging.”
Scott’s Liquid Gold also reported that it finished the second quarter with $8.0 million of cash and cash equivalents, an increase from $6.2 million as of December 31, 2018.
CFO Kevin A. Paprzycki commented, “The Scott’s team has done a fantastic job in the first half efficiently converting working capital into cash flow returns for its shareholders during a challenging sales period.”