Pharmaceutical and healthcare company Vita Life Sciences (ASX: VLS) has forecasted a positive growth trajectory for the first half of CY24. Besides expecting sales growth, it is also expecting returns from its recent product launch in Vietnam.
The Company expects sales to rise to between $39 million and $40 million, up from $34.7 million in the first half of CY23. Despite the anticipated sales increase, pre-tax profit is expected to remain relatively steady at $5.5 million to $6 million, compared to $5.5 million in H1 FY23.
Vita reported that it is confident in maintaining revenue growth across its core markets in Australia, Malaysia and Singapore. Strong sales have helped its first-half performance, thanks to its diverse product portfolio and channel strategies.
Vita Life Sciences specialises in creating, packaging, and selling vitamins and supplements, focusing on over-the-counter (OTC) medications, complementary and alternative medicines, dietary supplements, and health foods. The Company’s products are marketed under various brands, including Herbs of Gold (herbal, mineral and superfood products), VitaHealth, VitaScience, and VitaLife. They are distributed in markets such as Australia, Malaysia, Singapore, Thailand, Vietnam, China, and Indonesia.
In CY23, Vita Life Sciences reported record revenue of $74.2 million and earnings before interest and tax (EBIT) of $12 million. Its revenue mix changed marginally from CY22 in terms of geographical market contributions. Australia was Vita Life Sciences’s largest market. The Australian market’s contribution increased from 56% to 59% of total revenue, driven by higher export contributions, increased consumer demand, and expanded channels within the Australian Pharmacy sector.
Revenue from Australia reached a record $43.5 million, marking a 16% increase from the previous corresponding period (PCP). Domestic channels grew by 18%, while exports to China surged by 24%.
However, revenue from Vietnam and Indonesia decreased by 32% to $1.6m, primarily due to slower growth rates and realigning existing distribution arrangements. New partnerships are set to change that. The Herbs of Gold brand recently launched nine products in the Vietnamese market. This marks the beginning of a strategic alliance with Con Cung Group, a chain of Mother and Baby stores with over 700 outlets nationwide.
Vita continued investing in major e-commerce platforms to leverage Chinese consumer demand. It has also been expanding the VitaHealth brand into modern trade pharmacies across Malaysia and Singapore.
Alinda is a Business Reporter for The Sentiment
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