Vita Life Sciences Limited · ASX:VLS
Vita Life Sciences — FY2016 Earnings Presentation
19 slides from Vita Life Sciences's earnings presentation, Feb 15, 2017
Slide 1: Results Presentation 2016 Financial Year
Vita Life Sciences Ltd Results Presentation 2016 Financial Year HerDsoigold vitascience VitaLife’ Enriching Lives .Since 1947 Av 15 February 2017 ‘ ) /
Slide 2: Asia Pacific pharmaceutical and healthcare over-the-counter business
Asia Pacific pharmaceutical and healthcare over over-the-counter the counter business involved in the formulating, packaging, sales and distribution of vitamins and supplements 750 - 800 registered sku of vitamins and supplements sold in 7 countries in the Asia Pacific region 3 major brands
Slide 3: Group operating performance: Australia strong, Singapore and Malaysia markets softened
1 Group operating performance: Australia strong, Singapore and Malaysia markets softened softened. 2 2016 EBIT $5.7m, down 6.5% on FY15. Continued strong gross operating cashflow of $5.4m equated to EBITDA conversion 3 of 90% in 2016 (FY15: 93%). Continued prudent financial management with the Compa
Slide 4: Senior management, China distribution agreement and Malaysia central facility
Senior management: Mr Andrew O’Keefe appointed as the Managing Director from 1 1 January 2017 following the retirement of Mr Tie. In December 2016 entered into an exclusive distribution arrangement with Jointown 2 Pharmaceutical Co, one of China’s large pharmaceutical distributors, for the distribut
Slide 5: Revenue, EBIT, EPS
R Revenue EBIT EPS (A$m) (A$m) (cps) 40 8 9 35 8 7 30 6 H2 H2 6 25 H2 H2 5 H2 H2 20 4 4 15 3 10 2 H1 H1 2 H1 H1 H1 H1 5 1 0 0 0 2015 2016 2015 2016 2015 2016 4
Slide 6: Revenue by geography 2015 and 2016
2015 0 5 revenue e e ue by geography geog ap y 2016 0 6 revenue e e ue by geography geog ap y Other Asia Other Asia Australia Australia 41% 6% 41% 6% Singapore 16% Singapore 15% Asia Asia 59% 59% Malaysia Malaysia OTC OTC 38% 37% Total revenue: $38.6m Total revenue: $37.9m 5
Slide 7: Australia: EBIT up 19.9% against FY15
EBIT of $3.8m was up p 19.9% against g FY15. Continued focus on high quality products and leveraging of the fixed cost base has led to increased EBIT. Revenue base was sustained in a competitive Australian market due to rollout of the Vita Science brand in the pharmacy channel and sales via in
Slide 8: Malaysian revenue and EBIT has declined
Malaysian revenue and EBIT has declined by 1.3% and 8.1% respectively on 2015. Revenue base was sustained in continued difficult economic and trading conditions. EBIT margins were impacted by aggressive competitive pressure requiring an increase in trade and promotional investment. Revenue (A$
Slide 9: Singapore revenue and EBIT has declined
Revenue and EBIT has declined by y 6.3% and 23.9% respectively y on 2015. Revenue and EBIT margins were impacted by challenging trading conditions and aggressive competitive pressures. An increase in advertising and promotional investment was leveraged to maintain retail support. t Revenue (A$
Slide 10: Revenue contracted by 5.8% to $2.2m
(1) Revenue contracted by 5.8% to $2.2m The contraction in sales resulted from the inability to obtain registration of products in China under its new regulatory regime. The bright light in our expansion markets was Vietnam, which continued on its previously established growth path. EBIT los
Slide 11: Directors propose final dividend of 2.25 cents per share for FY16
Directors propose final dividend to 2.25 cents per share for FY16. Dividends paid to shareholders for FY16 total 3.75 cents per share. Final dividend is unfranked and fully sourced from Foreign Conduit Income. Strong operating cashflow conversion combined with prudent financial management has
Slide 12: Priorities for 2017
1 Recruitment of a CEO responsible for all Asian entities based in Malaysia. 2 New packing facility to be constructed in Malaysian head office. Execute revised strategies for the China market through the Jointown Pharmaceutical 3 Co distribution agreement. 4 C ti Continue to t develop d l our Pharma
Slide 13: Outlook: return to steady revenue growth
Following flat sales in 2016, Directors aiming for revenue to return to the steady growth off earlier li years. Given the Company’s diverse operating platform the Directors intend to provide more detailed guidance mid way through the year. 12
Slide 14: Appendix
Appendix
Slide 15: Year ended 31 December income statement
Year ended 31 December 2016 2015 Change $m $m % Revenue 37.8 38.6 -2.1% EBITDA 60 6.0 62 6.2 -3.3% 3 3% EBIT 5.7 6.1 -6.5% Profit before tax 5.6 6.0 -6.7% Income tax expense (Note 1) 2.3 1.7 35% Profit after tax 3.3 4.4 -25% EPS (Diluted – cents) 5.9 7.7 -23.4% Di id d (cents Dividend ( / share) h )
Slide 16: Balance Sheet as at 31 December
Balance Sheet as at 31 December 2016 2015 $m $ $m $ Current assets 21.7 23.5 Non-current assets 10.6 8.9 Total Assets 32.3 32.4 Current liabilities (6.8) (6.9) Non-current liabilities (2.3) (2.6) Total Liabilities (9.1) (9.5) Net Assets 23.2 22.9 15
Slide 17: Cash Flow
Cash Flow 2016 2015 $m $m Receipts from customers 41.6 42.3 Payments to suppliers and employees (36.2) (36.6) Gross operating cash flow 5.4 5.7 EBITDA 6.0 6.2 Gross operating cash flow / EBITDA 90% 93% Net interest received 0.0 0.0 Income tax paid (0.7) (0.8) Operating cash flows 4.7 4.9 Net investm
Slide 18: Disclaimer
This document has been prepared by Vita Life Sciences Limited (Vita Life) and comprises written material/slides for a presentation concerning Vita Life. The presentation is for information purposes only and does not constitute or form part of any offer or invitation to acquire, sell or otherwise dis
Slide 19: Contact Details
C t t Details Contact D t il Telephone: +61 3 9828 0500 Website: www.vitalifesciences.com.au Email: enquiries@vitalifesciences.com.au Head Office: Suite 650, 1 Queens Road, Melbourne, VIC 3004 18