DS HEALTHCARE GROUP, INC.

No Longer Reporting

The company has not filed an annual or quarterly report since its Q2 FY2017 10-Q, filed Aug 14, 2017. Its latest SEC filing is a 4 from Aug 31, 2018.

The sections below describe the company as of the FY2016 annual report.

What Did They Do?

Develops and sells branded hair-care, skin-care and personal-care products to salons, pharmacies and specialty retailers.

How Did They Make Money?

Distributors, salons and retailers buy the company’s personal-care products; sales are counted when products ship.

FY2014 revenue

Who Were Their Customers?

Most sales go through distributors; salons and retail outlets also buy, while consumers can buy directly on the company website.

Did Revenues Turn Into Profits?

No. It lost $1.3M in FY2014.

Operating income, FY2014

−9% of revenue

▼ −58% (Loss) vs FY2013 (−$3M, −22%)

Net income, FY2014

−10% of revenue

▼ −59% (Loss) vs FY2013 (−$3.2M, −24%)

Free cash flow, FY2014

−12% of revenue

▲ +60% (Loss) vs FY2013 (−$1M, −8%)

How Were They Changing?

Since the FY2016 annual report

Latest quarter: Q2 FY2017, the three months to Jun 30, 2017

Revenue: ▼ −54%; vs $4.8M in Q2 FY2016
Net income: ▲ +44% (Loss); vs −$1.6M in Q2 FY2016

Jul 16, 2018 Control changed and new CEO and CFO were appointed Shareholders removed the existing directors, elected a new board, and the board replaced the officers.
May 21, 2018 Board chose to outsource manufacturing and share e-commerce profits The e-commerce partner would cover manufacturing, storage and platform expenses and pay DS Healthcare half the profit.
May 7, 2018 Company described a new operating model and distributor forecasts It planned to end manufacturing licenses, centralize operations, and share e-commerce profits; its North American distributor forecast listed $500,000 in 2018, $2 million in 2019 and $4 million in 2020.

Grew. Revenue grew 39% in 3 years, from $9.7M in FY2011 to $13.4M in FY2014, about 12% a year.

Direct online sales The older report describes the website as a source of company and product information; the latest report says the company is developing website sales and has begun selling directly to consumers there.

Who Did They Compete With?

Competes with Loreal and Unilever

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