REG - Venture Life Group - Trading Update

Venture LifeAnnouncement

01/02/2024 07:00

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RNS Number : 5794B  Venture Life Group PLC  01 February 2024

1st February 2024

 

VENTURE LIFE GROUP PLC

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

Trading Update for the year ended 31 December 2023

 

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 2023 ("FY23"). The Company expects to publish
its results for FY23 in early April 2024.

Financial Highlights

·      Full year revenue c.£51m was +16% YoY (2022: £44.0m) and +5%
YoY on a proforma basis(1), in line with management expectations demonstrating
robustness and variety within the portfolio

·      Venture Life Brands revenue c.£30m was +30% YoY (2022: £23.0m)
and +8% YoY on a proforma basis(1) , representing 59% of revenues for the
Group in the year (2022: 53%)

·      EBITDA margin progression of c.2ppts highlighting gearing effect
from increased volume and EBITDA expected to be in line with management
expectations, subject to audit

·      Cash conversion improvement and normalisation of inventory
levels, leading to net cash from operations increasing over 70% to c.£9.5m
(2022: £5.6m)

·      Group net leverage(2) reduction to c.1.25x (December 2022: 1.65x)
and further reduction to c.1.1x post period end.

·      Targeted customer price increases implemented during Q4 2023,
contributing to further margin uplift in 2024

Operational Highlights

·      Revenues from Lift were +20% YoY and strong second half orders
for the oncology support portfolio included Gelclair growth +52% YoY

·      Ongoing focus on digital transformation saw online sales continue
to grow, full year revenues from this channel were +40% YoY at £3.8m (H1
2023: £1.6m)

·      28 new listings achieved across UK retailers during the year,
substantially coming from Newly Developed Products ("NDP")

·      Balance Activ Thrush Cream (launched in October 2023) exceeded
High Street rate of sales target just 8 weeks after launch

·      Post period end, further listing of Balance Activ NDP confirmed
with major UK retailer

The upward trend across our VLG Brands highlights a healthy revenue mix and
the Company's solid partnerships with these customers. Notably, 59% of the
Group's revenue is attributed to VLG brands, aligning with the Company's
strategic direction for a more resilient revenue composition.

Encouraging sales performance from newly developed products ("NDP"), is a
clear benefit of our investment in brand development, advertising, marketing
as well as our careful analysis of consumer needs and market trends. We have
successfully enhanced the visibility of Earol on the High Street through
impactful in-store activations and have fortified our Women's Health portfolio
in Superdrug by introducing new products in Q4 2023. Dentyl launched a cherry
flavoured 500ml line in B&M in Nov 2023, which has further strengthened
our presence in discounters. Balance Activ sales from Amazon grew strongly due
to the introduction of new products including Intimate Daily Wash, multipacks,
and thrush cream. The increased contribution of online revenue highlights our
success in digitisation.

Outlook

Moving forward, we are committed to continuing to intensify our initiatives to
diversify sales channels and extend our presence among customers and retailers
through additional targeted investment in sales and marketing. This will
involve, amongst other things, capitalising on the strong momentum witnessed
in online channels, discounters, health and beauty, pharmacy and grocery, and
adapting to the evolving market landscape.

Jerry Randall, Chief Executive Officer, commented: "2023 marks the first year
since 2019 that the Company grew its revenue completely organically. The
increase in revenue is primarily due to heightened sales volume, with some
price increases passed on to the customers in the second half, reflecting the
Company's ability to navigate economic challenges. This  organic  revenue
growth, combined with ongoing efforts to improve efficiency and strengthen
partnerships, positions the Company well for sustained future growth and
profitability. The integration of online sales channels, expansion into new
market segments and the strengthening of our brand power collectively
reinforce the Company's position within the market place and ensures that it
remains adaptable and resilient in a dynamic business environment.

Our Customer Brands team, based out of our Italian manufacturing site at
Biokosmes, delivered another year of excellence, spearheading new product
R&D initiatives and delivering best-in-class Contract Development and
Manufacturing Organisation experiences for our clients.

Benefiting from our robust growth, clear strategic priorities aimed at
refining our operation, substantial generation of free cashflow and a strong
balance sheet, we are now in a prime position to deliver strong shareholder
returns and I look forward to presenting the FY23 results to shareholders in
April."

 

(1) Proforma basis i.e. if the acquisitions of HL Healthcare Limited had been
in place for the whole of the prior year

(2) Group net leverage calculated as net debt (excl. finance leases) and using
proforma(1) Adjusted EBITDA(3) on a trailing 12-month basis.

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

 

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 some key
products such as the Balance Active range in the area of women's intimate
healthcare, the Earol® product line in ENT care, the Lift and Glucogel
product ranges for energy and glucose management and hypoglycaemia, the
UltraDEX and Dentyl oral care product ranges, products for fungal infections
and proctology, and dermo-cosmetics for addressing the signs of ageing. Its
products are sold in over 90 countries worldwide.

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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