REG - Venture Life Group - Trading Statement

Venture LifeAnnouncement

04/02/2025 07:15

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RNS Number : 7475V  Venture Life Group PLC  04 February 2025

4 February 2025

VENTURE LIFE GROUP PLC

("Venture Life", "VLG" or the "Company")

Full Year Trading Update

Marketing investment delivering returns for VLG Brands, strong second half
margin and Adjusted EBITDA broadly in line with management expectations

Venture Life (AIM: VLG), a leader in developing, manufacturing and
commercialising products for the self-care market, announces a trading update
for the year ended 31 December 2024 ("FY24"). The Company expects to publish
its results for FY24 in late April 2024.

 

Trading overview

Following the acquisition of Health and Her Limited (the "Acquisition") on 8
November 2024 the Group delivered FY24 revenues of c.£51.8m (2023: £51.4m),
up 1% over the previous year and up 3% at constant exchange rates ("CER").
Revenues from VLG Brands were c.£34.0m (2023: £30.5m), up 11% over the
previous year and accounted for 66% of overall sales (2023: 59%). Revenues
from Customer Brands were c.£17.8m (2023: £20.9m) down 15% over the previous
year (13% at CER) with de-stocking from a number of key customers resulting in
some order re-balancing into the beginning of 2025.

Integration of the Acquisition is progressing well and the new product range
contributed revenues of c.£0.8m in the period. On a proforma(1) basis VLG
Brands revenues were up 9% including the Acquisition.

Second half gross margins performed strongly at c.45% (H1 FY23: 40.9%) on a
greater weighting of revenues from the higher margin VLG Brands, impact of
customer price increases and internalisation of manufacturing for Earol.
Supplier consolidation intiatives led to operational costs lowering within the
underlying business in the second half although overall operating costs
increased slightly due to impact from the acquisition. The Group expects to
report FY24 Gross Margin of c.42% (2023: 39.2%) and Adjusted EBITDA(2) of
c.£11.3m (FY 23: £11.6m), subject to audit.

 

Cash and debt

Stable free cash flow(3) generation of c.£5.4m (2023: £4.8m) was up 12% over
the previous year and Group net leverage(4) increased to 1.7x (Dec-23: 1.3x)
resulting from debt drawn to support the Acquisition. Net debt at 31 December
was slightly higher than anticipated due primarily to timing of revenues.
 Post period-end net leverage has reduced to c.1.6x.

 

Outlook

The Acquisition is performing well and beginning to deliver the identified
revenue and operating synergies, including confirmation of new listings for
existing VLG Brands from Q2 FY25 into the acquired customer base. The
introduction of Health and Her's products means that VLG's Brands now have
distribution points across all of the major retailers in the UK market and
enables opportunity for further marketing investment to fuel sustainable and
profitable growth. The Acquisition is expected to deliver rapid growth and add
at least £1m of EBITDA to the Group in 2025.

As previously noted, the Group has increased its investment in marketing
activities and is pleased with the returns achieved to date. Excluding the new
Acquisition, sales of VLG's Brands within the UK delivered growth of 12% to
£20.3m (2023: £18.1m) in FY24. Further, the outlook for Customer Brands has
been strengthened by new business initiatives progressed during the last year
which will bring in revenues from new customers and reduce reliance on key
existing customers.

With the initiatives embedded, uplift from the Aquisition and continued focus
in sales and marketing activities for the VLG Brands, the Board is positive
about the year ahead and looks forward to reporting on continued progress.

 

Jerry Randall, Chief Executive Officer, commented: "I am pleased to see the
Group finish 2024 with Adjusted EBITDA broadly in line with our expectations,
with the increased spending on the marketing of our VLG Brands delivering good
growth in challenging market conditions and compensating for weaker Customer
Brands. After a strong 2023, Customer Brands was lower year on year where we
saw some unexpected destocking from a few customers and movement of orders
into 2025. The acquisition of Health & Her has been an excellent addition
to the VLG Brands portfolio, broadening our ever increasing presence in the
fast growing Women's Health space, and also being accretive to gross margin.
Despite the current economic environment  putting pressure on the consumer
space, with the embedding of the recent acquisition and continued investment
in our VLG Brands we are extremely positive for the outlook for growth in both
our revenues and profitability in 2025."

(1) Proforma basis i.e. if the acquisition had been in place for the whole of
the current and prior period.

(2) Adjusted EBITDA is EBITDA before deduction of exceptional items and
share-based payments.

(3) Free cash flow calculated before deduction of interest payable.

(4) Group net leverage calculated as net debt (excl. finance leases) and using
Adjusted EBITDA(2) on a trailing 12-month basis.

 

This announcement contains inside information.

 

For further information, please contact:

 

 Venture Life Group PLC                                    +44 (0) 1344 578004
 Jerry Randall, Chief Executive Officer

 Daniel Wells, Chief Financial Officer

 Cavendish Capital Markets Limited (Nomad and Broker)      +44 (0) 20 7720 0500
 Stephen Keys / Camilla Hume (Corporate Finance)

 Michael Johnson (Sales)

About Venture Life (www.venture-life.com (http://www.venture-life.com/) )

Venture Life is an international consumer self-care company focused on
developing, manufacturing and commercialising products for the global
self-care market. With operations in the UK, Italy, The
Netherlands and Sweden, the Group's product portfolio includes Balance Activ
in the area of women's intimate healthcare, Earol® supporting ENT care, Lift
and Glucogel product ranges for energy and glucose management and
hypoglycaemia, the Health and Her product range supporting the hormonal
lifecycle, Gelclair and Pomi-T for oncology support, the UltraDEX and Dentyl
oral care product ranges, products for fungal infections and proctology, and
dermo-cosmetics for addressing the signs of ageing.

 

The products, which are typically recommended by pharmacists or healthcare
practitioners, are available primarily through pharmacies and grocery
multiples. In the UK and The Netherlands these are supplied direct by the
Company to retailers, elsewhere they are supplied by the Group's international
distribution partners.

Through its two Development & Manufacturing operations in Italy and
Sweden, the Group also provides development and manufacturing services to
companies in the medical devices and cosmetic sectors.

 

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