Thu, Jan 11, 2018 - Page 12 News List

Dr. Wu to launch buyback scheme to boost confidence

STRATEGIC SHIFT:The firm said sales could grow significantly this year, as it plans to launch 29 new products and has begun a new advertising campaign

By Ted Chen  /  Staff reporter

Dr. Wu Skincare Co Ltd (達爾膚生醫科技) yesterday announced plans for a share buyback program to bolster investor confidence after sales took a hit last year.

The company’s board of directors has approved a plan to spend up to NT$1.39 billion (US$47 million), or 5.42 percent of liquid assets, to purchase 800,000 shares at between NT$75 and NT$130 per share from today through March 10.

The number of shares to be repurchased represents 1.75 percent of total shares in circulation, and would be canceled within six months after acquisition, it said.

Aggregate sales last year dipped 18.6 percent annually to NT$937 million, the company said, adding that sales last month dropped 44 percent annually to NT$53.78 million amid ongoing efforts to adjust inventory and optimize promotional campaigns.

However, sales in the fourth quarter of last year rose 21.1 percent to NT$262 million as its strategy to reposition the brand began to bear fruit, it said.

Sales could grow by a double-digit percentage this year as the company recovers from a trough, it said, adding that it plans to launch 29 new products this year.

The company has launched a new advertising campaign with a male brand ambassador to reinforce awareness among its primary customer base of women.

Shares in Dr. Wu Skincare yesterday traded flat to close at NT$93.5 on the Taipei Exchange. The stock reached a one-year peak of NT$225 in April last year.

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