Vita Life Sciences reported a robust half-year performance with revenue up 15.4% to A$45.5 million and a 12.2% rise in net profit, driven by strong growth in Australia and Southeast Asia. The company also increased its interim dividend to 4.5 cents per share, signaling confidence despite challenges in China.
- Revenue increased 15.4% to A$45.5 million
- Net profit after tax rose 12.2% to A$4.82 million
- Interim dividend raised to 4.5 cents per share, fully franked
- Strong growth in Australia, Malaysia, and Singapore markets
- China sales declined due to distributor transition
Solid Financial Growth Amid Market Expansion
Vita Life Sciences Limited has delivered a strong financial performance for the half-year ended 30 June 2025, with revenue climbing 15.4% to A$45.5 million and net profit after tax increasing by 12.2% to A$4.82 million compared to the previous corresponding period. This growth underscores the company’s successful expansion strategy across key markets in the Asia-Pacific region.
The company’s Managing Director, Andrew O’Keefe, highlighted broad-based growth across core markets, supported by increased marketing investment and positive consumer sentiment. Advertising and promotional expenses rose 26%, reflecting a deliberate push to enhance brand visibility and consumer engagement, particularly for flagship brands like Herbs of Gold and VitaHealth.
Regional Performance Highlights
Australia remains a solid contributor, with domestic revenue up 8% to A$19.6 million. Growth was driven by health food stores and pharmacies, where Herbs of Gold has cemented its presence as a recognised brand. However, earnings before interest and tax (EBIT) in Australia dipped slightly due to higher operating costs and increased trade investments aimed at customer acquisition.
Malaysia and Singapore were standout performers, with revenue soaring 54% to A$21.9 million and EBIT nearly doubling. This surge was fueled by strengthened retailer partnerships, expanded product ranges, and active consumer events that boosted brand loyalty. The company’s targeted initiatives in these markets appear to be paying off handsomely.
Conversely, China experienced a 45% decline in export sales, attributed to a distributor transition early in the year and a slower-than-expected handover. While this has dampened short-term performance, recent months have shown signs of recovery as consumer demand rebounds on major e-commerce platforms. Vietnam’s sales were marginally lower, prompting the company to implement a broader channel strategy, including appointing a new exclusive distributor for Herbs of Gold.
Financial Position and Dividend Policy
Vita Life Sciences maintains a robust balance sheet with equity of A$52.6 million and cash reserves of A$29.4 million, notably without any bank borrowings. The company declared a fully franked interim dividend of 4.5 cents per share, up 1 cent from the prior period, reflecting confidence in ongoing profitability. However, the dividend reinvestment plan remains suspended, a move that may interest income-focused investors.
The board expressed cautious optimism about sustaining momentum into the second half of 2025, with full-year revenue and profit growth expected. Further guidance is anticipated in the fourth quarter, which will be closely watched by the market given the mixed regional dynamics.
Bottom Line?
Vita Life Sciences’ strong regional growth and dividend hike signal resilience, but China’s recovery will be key to sustaining momentum.
Questions in the middle?
- How quickly will Vita Life Sciences’ China sales rebound following the distributor transition?
- What impact will the suspension of the dividend reinvestment plan have on shareholder engagement?
- Can the company maintain its marketing investment without compressing margins further?