Venture Life Group (VLG) H2 2025 earnings summary

Executive summary

• Transitioned to a pure-play, capital-light, brand-focused consumer healthcare model, divesting CDMO and non-core/oral care brands for €62m and up to £4.5m, generating £56.1m in cash and simplifying operations.

• Integrated Health & Her acquisition, delivering 44% first-year revenue growth and expanding product innovation.

• Launched a share buyback programme, returning £1.1m by year-end and £4.7m post-period, with authority up to 10%.

• Enhanced leadership team, including new executive appointments and a Chief Digital Officer, and implemented Microsoft Dynamics 365 ERP to improve digital and financial capabilities.

• Increased advertising and promotion spend, supporting double-digit organic growth and strong brand performance.

Financial highlights

• Group revenue rose 32.2% to £35.2m, up 11.4% on a proforma basis, with Power Brands and UK business driving growth.

• Gross profit increased 30% to £15.8m at a 45% margin; adjusted EBITDA fell 3.6% to £6.0m, margin down to 16.9%.

• Free cash flow was £3.3m, impacted by ERP investment; FCF excluding exceptional/ERP costs was £5.1m, with 85.8% conversion.

• Net cash position at year-end was £34.2m (2024: net debt £20.1m) after divestments and RCF repayment.

• Overall profit attributable to shareholders was £6.1m (2024: loss £0.3m); profit after tax from discontinued operations was £8.0m, with an £11.4m gain on sale.

Outlook and guidance

• Double-digit revenue growth continues into Q1 2026, with revenues trading c.18% ahead of prior year and improving gross margins from new product launches.

• Focus on M&A to deploy strong cash position, targeting complementary, margin-enhancing assets in core and adjacent categories and geographies.

• Ongoing share buyback programme, with 5.5% of shares repurchased and up to 7.0m shares acquired by March 2026.

• Board confident in meeting guidance for the 17-month period ending 31 May 2026.

• Continued innovation, category expansion, and digital transformation expected to drive future growth.