Vita Life Sciences (VLS) H1 2024 earnings summary

Executive summary

• Revenue for the half-year ended June 2024 increased 15% to $39.5M, with profit before tax up 9% to $6.0M year-over-year.

• Growth driven by customer acquisition, range expansion, and increased market share in Australia, Malaysia, China, Singapore, and the launch of Herbs of Gold in Vietnam.

• Marketing investment rose by $1.0M, supporting brand and sales growth.

• Strong balance sheet with $48.7M in equity, $27.7M in cash, and no bank borrowings.

• Fully franked interim dividend of 3.5 cents per share declared, up 0.5 cents from prior year.

Financial highlights

• Net profit after tax grew to $4.3M from $4.0M; basic EPS increased to 7.84 cents from 7.42 cents.

• Gross profit increased to $23.0M from $19.7M year-over-year.

• EBITDA increased to $5.8M from $5.7M; EBIT up to $5.6M from $5.4M.

• Cash and cash equivalents rose to $27.7M from $24.6M at year-end 2023.

• Fully franked dividend of 6.0 cents per share paid in April 2024 for FY23; interim dividend of 3.5 cents per share declared for October 2024.

Outlook and guidance

• Positive momentum in Australia, Malaysia, and Singapore expected to continue in H2 2024.

• Cautious yet optimistic approach for China due to shifting consumer behavior and platform changes.

• Focus remains on achieving full-year revenue growth over prior year; further outlook update to be provided in Q4.