Vita Group delivers solid FY18 result

Vita Group delivers solid FY18 result

Vita Group (ASX:VTG) today reported a solid result for the twelve months to 30 June 2018, delivering record revenues from continuing operations of $684.5 million, a three per cent increase on the prior yearEarnings before interest, tax, depreciation and amortisation (EBITDA) were $41.0 million, comfortably within January 2018 guidance, reflecting strong device sales, particularly in the second half.  

The EBITDA result however, was 37 per cent down on FY17due to previously communicated remuneration reductions and adverse product mix movements within the group’s information and communications technology (ICT) channel, impacting gross margins. These impacts were partially offset by a rigorous focus on cost control. Despite acquisitions within Vita’s non-invasive medical aesthetics (NIMA) channel, the group achieved a four per cent reduction in operating expenses, including an 11 per cent reduction in support costsNet profit after tax (NPAT) was $22.0 million. 

Strong cash conversion and tight working capital management resulted in operating cash flows of $36.6 million. The group invested $26.8 million (net of disposals) in acquisitions, refits and technology across both the ICT and NIMA businesses. Net financing cash flows were $7.8 million, primarily reflecting $18.5 million in dividends paid in the period, offset by $8.5m in proceeds raised through the group’s dividend reinvestment plan. Cash balances at the end of FY18 were $31.6 million and Vita had no net debt at period end, providing flexibility for investment in growth opportunities.   

The Board declared a fullyfranked final dividend of 4.4 cents per share (cps), resulting in a fullyfranked dividend for the full year of 9.1 cps, representing a payout ratio of 65 per cent. The final dividend will be paid on 28 September 2018 to shareholders on record as at 14 September 2018.  


($m unless otherwise stated)  FY18  FY17  Change 
Continuing operations       
Revenue  684.5  667.3  3% 
Gross profit   211.3  242.9  (13%) 
Gross profit %  31%  36%   
EBITDA  41.0  65.0  (37%) 
EBIT  30.9  55.4  (44%) 
NPAT   22.0  39.0  (44%) 
Profit / loss from discontinued Next Byte operations  0.0  0.4   
NPAT including discontinued operations  22.0  39.4  (44%) 
Full year dividend  9.1 cps  16.6 cps  (45%) 
Earnings per share  14.13  25.62  (45%) 



FY18 in Review 

Vita’s full year results demonstrate solid performance, despite challenging ICT industry conditions. 

The retail ICT channel delivered a two per cent increase in revenues after a particularly strong second half. EBITDA, however, was lower, reflecting remuneration reductions and an adverse product mix, partially offset by productivity gains and a rigorous focus on costs.  

In the business ICT channel, small-to-medium business revenues increased six per cent, with device sales well up on prior year. Whilst enterprise channel revenues were 13 per cent lower as the group refocused on profitable lines of business, the product mix improved to reflect strong annuity, and professional and managed services revenues. EBITDA for the combined business ICT channel grew versus FY17. 

Vita’s accessories brand, Sprout continued to deliver solid results, achieving distribution gains outside its traditional ICT channel after launching new product innovations in waterproof audio and wireless charging. 

The group’s men’s active and lifestyle brand, SQDAthletica continued to grow, achieving good momentum across retail, online and wholesale channels. 

Vita delivered on its strategic intent to replicate its significant consulting expertise in new, attractive categories – namely the NIMA market, which displays many of the characteristics which the ICT category showed early in its lifecycle. Vita acquired six Clear Complexions clinics in November 2017 and Artisan Cosmetic & Rejuvenation Clinic in May 2018, and all clinics are now embedded and performing in line with, or ahead of, expectations. A new customer-facing brand has been developed and will be launched in early FY19, as the group begins to add scale, in line with its strategy to establish a national network of aesthetic clinics leading the premium space.  

Vita’s physical portfolio, as at 30 June 2018, included 105 Telstra Licensed Stores, 23 Telstra Business Centres, one Fone Zone store, one SQDAthletica store, six Clear Complexions clinics and one Artisan Cosmetic & Rejuvenation clinic. Seven Telstra retail stores and two Telstra Business Centres were added in FY18, while seven Telstra retail stores were sold or closed, in line with the group’s optimisation strategy.  


FY19 Outlook 

Vita Group is strategically and financially well-positioned for the future.  

The ICT channel will continue to drive improved performance, generate cash flow and deliver strong returns through its optimisation and productivity programs.  

In line with Telstra’s recently updated strategy for small-to-medium business customers, Vita has entered a process to transition from the Telstra Business Centre model, and has applied to become part of the new, premium Telstra Business Technology Centre (TBTC) model in FY19. Vita is confident it will be successful with its application, which would see Vita operate fewer points of presence across significantly expanded territories. TBTCs will service small-to-medium businesses with more complex technology needs, offering wholeofbusiness solutions through highly trained consultants. Small business customers with relatively simpler needs will be serviced by the retail channel, utilising existing infrastructure, but with whole of business solutions. This represents a significant opportunity for Vita’s retail channel. In enterprise, the group will continue to focus on improving product mix and profitability across its key accounts.  

Vita’s NIMA channel is a material opportunity for value creation with high mid-to-long term revenue and profit potential and will be a focus for capital investment in FY19 and beyond. With a strong operating model and support structure as well as a new brand, the group is well-positioned to scale the channel materially over four to five years. Clinics will operate under one national brand and will benefit from Vita’s operational expertise and scalable systems and processes. Each clinic will portray a unique and bespoke character that pays homage to the buildings and communities that they are part of. The clinics will be doctor and nurse practitioner led and will offer a range of modalities from injectables, dermal and body treatments, to skin care. Vita’s goal is to be the leading, premium medical aesthetics brand in Australia, setting the benchmark for quality results, safety and best practice.   

Across all businesses and support services, Vita will continue its focus on cost control, driving productivity and profitability, whilst continuing to evolve its portfolio. At the same time, Vita will continue to look after its most important asset – it’s people, through an ongoing focus on developing strong leaders and building a positive workplace culture.  

Chief Executive Officer, Maxine Horne said: “I’m very pleased with Vita Group’s performance in FY18, which once again proves our ability to adapt and evolve in a challenging environment. We have an amazing group of leaders and it’s when you’re faced with challenges like we’ve had in FY18, that this talent shines through. By leveraging our core competency of expert consulting, our team has continued to drive profitability across our increasingly diverse network of brands. As a result, we are well-positioned for the future as we continue to deliver greater value for our customers, team members, the communities we operate in, and of course our shareholders. I thank all of our amazing Vita peeps for a tough, but rewarding year, and I look forward to working with the team to continue to create a great future for all of our stakeholders. 


Artisan Aesthetic Clinics adds Euphoria Cosmedic Clinic

Vita Group (ASX: VTG) has acquired Euphoria Cosmedic Clinic on the Gold Coast under its Artisan Aesthetic Clinics brand. Founder of Euphoria and highly skilled registered nurseRachel Gregory will join the team at Hope Island Road on Tuesday 4 Maybringing her significant cosmetic injectables expertise to the clinic. 

With more than 24 years of medical experience including 15 years in aesthetic treatments, Rachel has established herself as one of the Gold Coast’s most respected cosmetic injectors, known for delivering natural looking results in a professional, friendly and caring wayThe clinic has a particular focus on delivering premium cosmetic injectable treatments including anti-wrinkle, dermal filler and PDO threads.

Maxine HorneVita Group’s Chief Executive Officer, said: “We are very pleased to welcome Rachel to the Artisan teamShe will add significant value to our Hope Island Road clinic, expanding the clinic’s capability in the field of cosmetic injectables and further reinforcing the premium, personalised experience we provide to our clients.”

Artisan Aesthetic Clinics launched in 2018 with the opening of Artisan Racecourse Road in Brisbane, Queensland. Through its focus on appointing a team of highly-skilled clinicians to deliver holistic treatments and technologies in a premium environment, the brand has quickly established itself as one of Australia’s leading cosmetic clinic networks.

Artisan currently operates 20 clinics across Australia, three of which are on the Gold Coasta high-demand location for non-invasive cosmetic treatments in Australia.

Artisan Aesthetics Group – clinic network


  • Artisan Racecourse Road, Hamilton 
  • Artisan Gasworks, Newstead
  • Artisan Rosalie Village, Rosalie
  • Artisan Fortitude Valley
  • Artisan Bulimba
  • Artisan Maroochydore
  • Artisan Hope Island Rd
  • Artisan Kenmore
  • Emetheni, Burleigh Heads 
  • The Bradford Clinic, Toowoomba
  • Face Today Mediclinic, Cairns
  • HC Medical, Robina

New South Wales

  • Artisan Balmain
  • Artisan Mosman  
  • Lily Room, Chatswood 
  • Coco Skin Laser Health, Newcastle

Australian Capital Territory

  • Artisan Bruce  
  • Artisan Woden 
  • Artisan Gungahlin


  • Pamper Medical Skin Clinic, Geelong 
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Sprout accessories achieves ISO certification

Vita Group’s Sprout accessories brand has been awarded two Best Practice ISO certifications, strengthening its reputation as a best-in-class manufacturer and leading provider of technology accessories in Australia.

The certifications – Best Practice Quality Management System (ISO9001) certification and Best Practice Environment Management System (ISO14001) certification – are based off international standards set by the International Organisation for Standardization. They demonstrate that an organisation’s product or service meet the expectations of its customers and reflect Sprout’s commitment to sustainability and creating technology that enhances the world not just today, but into the future.

To achieve ISO9001 and ISO14001, the business met a comprehensive set of requirements which it must now continue to meet to maintain certification. ISO certification delivers significant business benefits including improved customer satisfaction, cost reduction, improved legal compliance and risk management, and importantly, environmental benefits for Sprout and for its suppliers.

For Sprout General Manager, Ben Caddy, achieving ISO certification was an important step in the brand delivering its ten-year sustainability action plan which aims to address key elements across the end-to-end product value chain.

“At Sprout we are always aiming to improve our customer experience and quality standards, and ISO ensures we do that,” he said. “ISO9001 enables us to demonstrate our ability to provide products and services that consistently meet regulatory requirements, whilst ensuring the smooth operation of our business and exceeding our customers’ expectations. Another major focus for Sprout is to reduce our carbon impact,” Mr Caddy continued. “The standards in ISO14001 help us to define the right targets and measure and track our results to ensure that the business is constantly improving and meeting our environmental objectives.”

Sprout’s ten-year sustainability action plan involves implementing key initiatives including sourcing recyclable materials for packaging and product development, continuing to drive ethical and socially responsible supply chains, reducing carbon emissions, and designing more sustainable multi-use and eco-friendly products.

The brand is already underway in implementing these initiatives, recently launching a campaign in partnership with One Tree Planted that will see it fund the planting of ten trees for every product sold online from 21 March to 29 June. To date, Sprout has funded the planting of nearly 2,600 trees and is aiming for 10,000 trees planted by the end of June to help One Tree Planted’s reforestation efforts following the 2019/20 Australian bushfires.

Sprout is also set to move to 100% recyclable packaging towards the middle of 2021 which will include switching from foam to recycled pressed cardboard, removing non-recyclable plastic windows, and extensive use of bamboo pulp in packaging.

Compostable phone cases are also in development and due to launch later in the year. These cases will see 90% biodegradation of plastic material within 12 weeks in commercial compost systems or 12 months if composted at home.

Mr Caddy said ISO certification will ensure Sprout is held accountable for these environmental initiatives as well as its sustainability targets. It will also ensure the business is continuously improving its manufacturing and environmental management systems to the benefit of its customers and the world around it.

“ISO certification is extremely important to the business as it ensures we have the tools, processes and systems to meet our business targets,” he said. “ISO certification also places the business in a constant state of improvements so that we can not only show improvement year-on-year, but also regularly monitor our important sustainability objectives and put the processes in place to achieve them.”

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Artisan Aesthetics Group reaches 20 clinic milestone with new acquisition  

Artisan Aesthetics Group (AAGcontinues to grow with the acquisition of Coco Skin Laser Health on 19 February 2021, bringing its network to 20 clinics across Queensland, New South Wales, the Australian Capital Territory and Victoria. 

Located in the beautiful harbour city of Newcastle, New South Wales, Coco Skin Laser Health has been a fixture in the local community for nearly 10 years, building a strong reputation for helping clients to look and feel more confident through beautiful, healthy skin. 

The clinic’s experienced team of 15 is comprised of dermal therapists, cosmetic nursesdoctorsand the front of house team. The Coco team will join Artisan and will continue their focus on creating personalised treatment plans containing a combination of therapies to support clients with their skin health and wellness goals. The experienced clinicians use non-surgical techniques and combination therapies to help clients to manage the signs of ageing and sun-damageAt Coco, the aim is to enhance their clients’ best features, improve their complexion, and lift and tone sagging skin. 

As part of the Artisan network, Coco Skin Laser Health will continue using industry leading clinic management software program, cosmedcloud™, and the team will gain access to clinical training through Artisan’s Clinical Education and Training division. The clinic, which has experienced strong growth post-COVID with a high volume of new clients, will continue to offer an extensive menu of treatments including laser and light therapies and cosmetic injectables including biostimulator treatments such as platelet rich plasma (PRP), while benefiting from Artisan’s ongoing investment in the latest treatments and technologies.  

Vita Group CEO, and founder of Artisan Aesthetic Clinics, Maxine Horne, said she is excited to mark the group’s 20th acquisition and welcome Coco Skin Laser Health to the group as it continues to establish itself as a leader within the premium end of Australia’s aesthetics industry, operating a national network of 70 premium clinics over the next five years.  

Coco Skin Laser Health is an excellent addition to our portfolio. As with Artisan, the clinic and its team are known for delivering exceptional, personalised servicewith a combination of treatments that achieve high-quality results for their clients. We are excited to welcome them to the Artisan family and to extend Artisan’s service offering further. 

Artisan Aesthetics Group – clinic network


  1. Artisan Aesthetic Clinic, Racecourse Road, Hamilton 
  2. Artisan Aesthetic Clinic, Gasworks, Newstead
  3. Artisan Aesthetic Clinic, Rosalie Village, Rosalie
  4. Artisan Aesthetic Clinic, Fortitude Valley
  5. Artisan Aesthetic Clinic, Bulimba
  6. Artisan Aesthetic Clinic, Maroochydore
  7. Artisan Aesthetic Clinic, Hope Island
  8. Artisan Aesthetic Clinic, Kenmore
  9. Emetheni, Burleigh Heads 
  10. The Bradford Clinic, Toowoomba
  11. Face Today Mediclinic, Cairns
  12. HC Medical, Robina  

New South Wales

  1. Artisan Aesthetic Clinic, Balmain
  2. Artisan Aesthetic Clinic, Mosman 
  3. Lily Room, Chatswood 
  4. Coco Skin Laser Health, Newcastle 

Australian Capital Territory

  1. Artisan Aesthetic Clinic, Bruce  
  2. Artisan Aesthetic Clinic, Woden 
  3. Artisan Aesthetic Clinic, Gungahlin


  1. Pamper Medical Skin Clinic, Geelong  
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