HomeHealthcareVITA LIFE SCIENCES LIMITED.. (ASX:VLS)

Rising Costs and Market Challenges Test Vita Life Sciences’ Growth Strategy

Healthcare By Ada Torres 3 min read

Vita Life Sciences has reported a strong FY2025 with record revenue of $93.3 million and net profit after tax rising 18.8%, while declaring a 14.0 cents per share dividend.

  • Record revenue of $93.3 million, up 17.3%
  • Net profit after tax increased 18.8% to $10.4 million
  • Debt free with net assets up 7% to $56.2 million
  • Total dividend of 14.0 cents per share, 64% franked
  • Strong growth in Australia and Malaysia/Singapore; China and Vietnam markets declined

Strong Financial Performance

Vita Life Sciences Limited has announced a robust financial performance for the year ended 31 December 2025, posting record revenue of $93.3 million, a 17.3% increase over the previous year. Net profit after tax rose by 18.8% to $10.4 million, reflecting the company’s effective execution across its diversified markets and channels. The company remains debt free and increased its net assets by 7% to $56.2 million, supported by $35.6 million in cash reserves.

Dividend Growth and Capital Management

Continuing its consistent shareholder returns, Vita Life Sciences declared a total dividend of 14.0 cents per share for FY2025, comprising a 4.5 cents interim dividend and a 9.5 cents final dividend. The final dividend is 47% franked, bringing the overall franking level for the year to 64%. This marks the company’s 16th consecutive year of dividend payments, with a payout ratio aligned to the directors’ policy at 75% of profit after tax. The dividend reinvestment plan remains suspended, and the company executed a share buy-back program, repurchasing over one million shares during the year.

Segment Performance Highlights

The Australian segment delivered record revenue of $40.5 million, up 8%, driven by strong performances in health food and pharmacy channels, although earnings before interest and tax (EBIT) declined by 14% due to increased operational and marketing investments. Meanwhile, the Malaysia and Singapore operations achieved standout results with revenue up 35% to $44.8 million and EBIT surging 62% to $9.6 million, supported by expanded product ranges and resilient consumer demand.

Conversely, the China and Vietnam markets experienced an 11% revenue decline to $7.9 million amid heightened competition, regulatory changes, and slower-than-expected transition to a new trade partner. The company plans measured investments to strengthen its position in these developing markets.

Strategic Outlook

Vita Life Sciences continues to invest strategically in brand development and channel expansion to support sustainable long-term growth. The diversified geographic footprint and balanced channel mix have underpinned consistent performance, even as some markets face challenges. With positive momentum and a strong operating platform, the company enters 2026 well positioned to capitalize on growth opportunities.

Governance and Compliance

The financial statements are currently in the process of being audited, with no expected qualifications. The company maintains a formally constituted Audit Committee and complies with all relevant Australian Accounting Standards and ASX Listing Rules. No contingent liabilities were reported as at 31 December 2025.

Bottom Line?

Vita Life Sciences’ record results and disciplined capital management set a confident tone for 2026, though challenges in China and Vietnam warrant close attention.

Questions in the middle?

  • How will Vita Life Sciences navigate competitive pressures and regulatory changes in China and Vietnam?
  • What is the outlook for dividend sustainability amid ongoing investments and share buy-back programs?
  • How will the company balance growth investments with maintaining strong profitability in its mature markets?