Pompano Beach, Nov. 15, 2013 (GLOBE NEWSWIRE) -- DS Healthcare Group, Inc.(NASDAQ:DSKX), a leading developer of personal care products, today announced financial results for the three and nine months ended September 30, 2013.
Net revenues increased 22% in the first nine months of 2013 to $10,593,035 over net revenues of $8,672,634 in the same period of 2012. Revenue growth was primarily driven by the acquisition of the Company's Mexican subsidiary. Gross profits for the nine months ended September 30, 2013 were $5,138,195 as compared to $4,292,464 in the same period of 2012. Net loss attributable to shareholders during the nine months ended September 30, 2013 was $(2,268,463) or $(0.18) per basic and diluted share, as compared to $(848,786) or $(0.08) per basic and diluted share in the same period of 2012. Increased loss was in part attributed to the rapid expansion in Mexico, larger operational infrastructure and non-cash items.
Net revenues for the third quarter of 2013 were $3,200,189, a 0.3% increase from net revenues of $3,190,390 in the third quarter of 2012. Lower revenues in the U.S. due to the Company's new policies related to extending credit to new and existing customers, preventing the Company from shipping some goods on its schedule. Gross profits in the third quarter were $1,762,426, as compared to $1,791,383 in the third quarter of fiscal 2012. Net loss attributable to shareholders in the third quarter of 2013 was $(1,053,406) or $(0.08) per basic and diluted share as compared to $(40,364) or $(0.00) per basic and diluted share in the third quarter of 2012.
The Company reported total current assets of $5,388,823 and total shareholders' equity of $3,548,732 on September 30, 2013.
"In the first nine months of 2013 our top line revenues hit a new record. In addition to continuing our marketing and sales efforts for our current product lines, we are expanding our distribution channels both domestically and internationally," stated DS Healthcare President and CEO Daniel Khesin.
"Third quarter initiatives included launching our e-commerce site in Brazil and signing a distributor in China. Our R&D efforts have led to innovations that now position us to grow beyond the over-the-counter market in hair care and eventually into the highly lucrative prescription hair loss treatment market. In October we filed a patent application with the United States Patent and Trademark Office for our invention, 'Compositions and Methods for Treatment of Hair Loss'. We look forward to a strong finish for 2013," Khesin concluded.
About DS Healthcare Group
DS Healthcare Group Inc. leads in the development and distribution of topical therapies for personal care, including what management believes is the world's most effective topical treatment for hair loss. Its products are sold through a network of salons, pharmacies, online retailers, specialty retailers and select department stores. Its brands include DS Laboratories(www.DSLaboratories.com), Sigma Skin (www.(www.SigmaSkin.com), Polaris Research Laboratories (www.PolarisResearchLabs.com) The Pure Guild (www.ThePureGuild.com) and Nutra Origin (www.NutraOrigin.com)
Forward-looking statements
Except for statements of historical fact, the matters discussed in this press release are forward-looking and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies, and are generally preceded by words such as "future," "plan" or "planned," "expects," or "projected." These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond the company's control that may cause actual results to differ materially from stated expectations. These risk factors include, among others, limited operating history, difficulty in developing and marketing products, intense competition, and additional risks factors as discussed in reports filed by the company with the Securities and Exchange Commission, which are available at http://www.sec.gov.