Venture Life Group (VLG) H2 2024 earnings summary

Executive summary

• Reported year-end 2024 results with a strategic shift to a pure-play consumer healthcare brand model, following the divestment of CDMO operations and non-core brands for €62m.

• Group revenue stable at £51.5m for 2024, with gross margin rising to 42.1% from 39.2% year-over-year.

• Focus now on high-margin power brands in women's and men's health, energy management, and ENT, with significant investment in marketing and digital capabilities.

• Acquisition of Health & Her for £10m (including £2.5m deferred), expanding presence in the U.K. and U.S. retail markets and contributing £0.8m revenue post-acquisition.

• Proceeds from divestments to be used for organic growth, M&A, and further brand investment.

Financial highlights

• Total group revenue (including divested assets) was £51.5m; gross margin rose to 42.1% from 39.2% year-over-year.

• Adjusted EBITDA was £11.4m (22% margin), slightly down from last year.

• Continuing business revenue grew 19% to £26.6m, with gross margin up to 45.8% and adjusted EBITDA at £6.2m (23% margin).

• Free cash flow from ongoing operations was £4.3m, with nearly 70% cash conversion, up 61.5% year-over-year.

• Adjusted EPS up 29.6% to 3.37p.

Outlook and guidance

• Expecting further gross margin improvement as high-margin brands like Health & Her scale, targeting EBITDA margins up to 25% over three years.

• Free cash flow conversion anticipated to increase due to capital-light structure.

• Ongoing marketing investment to reach 10–12% of revenue, supporting top-line and margin growth.

• Net cash position expected at £36m after CDMO sale; RCF up to £50m available.

• Trading in 2025 is positive, with a first-half update due in July.