Vita Life Sciences Delivers Record First Half on Improved Product Mix and Margin Increase

Vita Life Sciences (ASX: VLS) delivered a record first-half result for the six months to 30 June 2026, with revenue rising 6.1% to $48.3 million and net profit after tax increasing 14.9% to $5.5m.

Profit before tax climbed 19.1% to $8.1m as an improved product mix and cost discipline lifted gross profit margin to 63.5% from 60.1% in the previous corresponding period.

Growth remained broad across the group’s core markets, with Australia revenue up about 14%, Malaysia and Singapore increasing about 7%, and Vietnam advancing 59% from a smaller base despite continued challenges in China.

Vita Life Sciences declared a partially franked 5.0-cent-per-share interim dividend, up from 4.5 cents a year earlier, while retaining $33.7m of cash and no bank borrowings at period end.

Stronger Margins Across Portfolio

Gross profit increased to $30.7m from $27.4m as the margin expansion helped earnings grow faster than revenue, with EBITDA rising to $8.2m from $7.0m.

Profit from continuing operations before interest and tax reached $7.7m compared with $6.4m a year earlier, while basic EPS increased to 10.22 cents from 8.61 cents.

Marketing expenditure increased to $5.0m from $4.5m, with advertising and promotional investment rising 13% as Vita Life Sciences continued brand-building and retail initiatives across its key markets.

After launching seven new products across Australia, Malaysia, and Singapore during the half, the group now has more than 350 registered products across its portfolio.

Core Markets Driving Growth

Australia generated $22.4m of external revenue compared with $19.6m a year earlier, with strong pharmacy-channel growth and targeted marketing supporting a rise in earnings before interest and tax to $3.3m from $2.2m.

Malaysia and Singapore remained the group’s largest operating market with $23.4m of external revenue, up from $21.9m, while earnings before interest and tax increased to $5.4m from $4.9m.

Vietnam continued to build momentum through wider customer ranging, new distribution opportunities and increased e-commerce penetration, although combined China and Vietnam revenue fell to $2.5m from $4.1m as Chinese trading remained affected by regulatory developments and subdued consumer sentiment.

China and Vietnam recorded a combined $251,000 loss before interest and tax compared with a $144,000 loss a year earlier, reflecting the continuing investment required across the developing markets.

Vita Life Sciences plans to implement revised e-commerce arrangements in China from September 2026 through a new exclusive distributor as it seeks stronger market execution and positioning.

Next Phase Cash Position

Gross operating cash flow was $7.5m, representing 91% conversion of EBITDA, while net operating cash flow declined to $5.0m from $6.6m after income tax payments increased to $3.0m.

The group spent $1.2m buying back shares during the half and paid $5.2m in dividends, contributing to a $1.9m net decline in cash during the period.

Total equity stood at $55.7m and the balance sheet carried no bank debt, leaving Vita Life Sciences positioned to fund organic growth initiatives and selective strategic opportunities from existing resources.

Management will continue monitoring economic conditions and consumer sentiment across its markets, and expects to provide a further outlook in the fourth quarter.