Vita Group delivers solid interim result

Vita Group delivers solid interim result

Vita Group Limited (ASX:VTG) today reported a solid performance for the six months to 31 December 2017, despite challenging industry conditions.

The group delivered revenues from continuing operations of $329.6 million, four per cent lower than prior year; with earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations of $20.0 million, down 43 per cent on prior year. Net profit after tax (NPAT) was $11.2 million.

These results were well ahead of guidance provided to the market in October 2017, and in line with upgraded guidance issued in January 2018, reflecting a stronger October to December trading quarter, supported by an earlier relaxation of constraints on iPhone 8 and iPhone X inventory after launch, and the group’s rigourous focus on cost control.

Operating cash flows after tax were $18.0 million, reflecting strong cash conversion and additional investment in working capital in support of the iPhone 8 and iPhone X launches. Vita invested a net $13.2 million in acquisitions, refits and technology solutions, which will deliver benefits into the future. Financing outflows were $12.0 million, primarily reflecting $11.3 million in dividends paid in the period. The cash balance at the end of the half was $22.5 million and the group had no net debt, positioning it strongly for ongoing investment in growth opportunities, in line with Vita’s strategy.

Vita maintained its dividend payout ratio at 65 per cent of profits after tax. The Board declared a fully franked interim dividend of 4.7 cents per share, to be paid on 13 April 2018 to shareholders on record as at 29 March 2018.

Chief Executive Officer, Maxine Horne commented: “We are pleased that, despite industry margin pressures, we delivered a solid interim result that exceeds guidance. Our team has continued to consult with our customers to deliver exceptional experiences. They’ve rigourously focused on cost control, and all without letting challenging conditions impact their love for what they do.”


($m unless otherwise stated)

H1 FY18

H1 FY17


Continuing operations




Gross profit 
















Earnings per share (EPS)

7.32 cps

14.11 cps


Interim Dividend

4.7 cps

9.2 cps


Profit/(loss) from discontinued Next Byte operations




Group revenues from continuing operations declined four per cent to $329.6 million, primarily due to remuneration reductions from Telstra in Vita’s retail information and communications technology (ICT) channel. In addition, consumer demand in the first four months of the fiscal year was softer than expected, as a result of a longer than usual period of time between the announcement and shipment of new Apple iPhone products.

These changes mainly impacted Vita’s retail channel in ICT, resulting in a four per cent decline in revenues and a 38 per cent reduction in EBITDA. Productivity and performance improvements, combined with the continued optimisation of the physical portfolio (two store additions and two divestments) assisted and will deliver benefits in the second half.

In the business channel of ICT, revenues were down 10 per cent, with small-to-medium business sales slightly up, offset by lower enterprise sales. The reduction in enterprise sales reflected a renewed focus on account profitability, with the group choosing to exit some lines of business that did not meet financial hurdles. As a result, EBITDA increased eight per cent in the period as the group began to leverage its scale, whilst continuing to achieve cost savings, which will flow through fully in the second half and beyond.

Group gross margins declined due to remuneration reductions and a movement in product mix toward lower margin items such as devices and recontracted plans.

Vita continued its focus on productivity and efficiency gains, reducing total operating expenses by 11 per cent, including a 17 per cent reduction in support costs.

Importantly during the half, Vita delivered on its strategic intent to take its core competency of consultative selling into new, attractive categories. In November 2017, Vita entered the non-invasive medical aesthetics (NIMA) market, acquiring medical-grade skincare brand, Clear Complexions, which is performing well and remains on track to deliver annual revenue of around $10.0 million and annual EBITDA of more than $1.0 million in the year post acquisition. In addition, Vita’s accessories brand, Sprout, continued to grow its points of distribution, and Vita’s men’s active and lifestyle brand, SQDAthletica, continued its journey as a start-up business and is building momentum in retail, online and wholesale channels.


Vita Group expects to deliver EBITDA in the range of $38.0 million to $43.0 million for FY18, in line with the guidance provided to the market in January 2018.

Vita has now absorbed Telstra’s remuneration changes. Backed by its strengthened strategic partnership with Telstra, the group will continue to deliver healthy returns by improving performance and further optimising its portfolio. In new categories, all brands, including Clear Complexions, are firmly embedded into the group and Vita is well positioned, with significant financial capacity to drive strategic investment.

“This is an exciting time of evolution for Vita Group,” said Ms Horne. “We have established a very strong and profitable business. We have recently delivered on our strategic intent, which is to take our proven core competencies into a new attractive category. The NIMA category, like telecommunications historically, is exposed to strong growth opportunities, has healthy margins and is fragmented. We now look forward to executing our three to five-year plan to build a profitable business at scale. There is much to do; and the future is bright.”


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 
Read More

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.”

Read More

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  
Read More