Venture Life Group (VLG) H1 2024 earnings summary

Executive summary

• Revenue reached £23.5m in H1-24, with 17% growth in VLG Brands (excluding oncology support) and 8% growth in own brands, driven by new product launches and expanded listings in UK and EU retail channels.

• Marketing investment rose by over 90%, boosting brand awareness, new listings, and a 35% increase in Power Brands revenues; online revenue grew 50% year-over-year.

• Geographic reach expanded with new partnerships in Europe and the US, generating £1.0m in first orders and collaborations with blue-chip partners.

• Net cash from operations rose 58% to £5.8m, and free cash flow increased 69% to £4.3m.

• Net leverage reduced to 1.09x from 1.30x at Dec 2023, reflecting strong cash generation and deleveraging.

Financial highlights

• H1-24 revenue was £23.5m, up from £18.9m in H1-23; VLG Brands revenue rose to £13.9m from £12.9m.

• Gross margin improved to 39% in H1-24, up 90bps year-over-year, driven by higher-margin VLG Brands.

• Adjusted EBITDA for H1-24 was £3.3m–£3.6m, with margin temporarily suppressed by increased marketing investment.

• Free cash flow increased 69% year-over-year, supporting ongoing investment and operational improvements.

• Net debt reduced to £10.5m, with group net leverage down to 1.09x.

Outlook and guidance

• H2-24 expected to deliver further margin improvement from higher-margin VLG Brands and operational efficiencies from internalising Earol production.

• NPD pipeline to expand Menopause range and Earol portfolio; new partnerships in US and Europe to drive revenue growth.

• Board confident in meeting full-year expectations, citing distribution gains and new partnerships.

• New licensing and supply agreement with a major European OTC player in Women's Health to launch in Q1 2025.

• Continued focus on leverage reduction and strategic investment opportunities.