Venture Life Group (VLG) H2 2025 earnings summary

Executive summary

• Transitioned to a pure-play consumer healthcare company after divesting CDMO and non-core brands for €62m and oral care brands for up to £4.5m, simplifying the business and focusing on high-margin, brand-led growth.

• Integrated Health & Her acquisition, delivering 44% first-year revenue growth and contributing £1.4m to EBITDA.

• Launched a share buyback programme, returning £1.1m to shareholders by year-end and £4.7m post-period end.

• Implemented Microsoft Dynamics 365 ERP and strengthened leadership with new executive and senior management appointments.

Financial highlights

• Group revenue rose 32.2% to £35.2m (2024: £26.6m), up 11.4% on a proforma basis.

• Gross profit increased 30% to £15.8m at a gross margin of 45.0% (2024: 45.8%).

• Adjusted EBITDA decreased 3.6% to £6.0m, with margin down to 16.9% (2024: 23.2%).

• Operating loss of £1.3m (2024: profit of £1.5m); adjusted profit before tax up to £4.9m (2024: £4.3m).

• Adjusted EPS up 15.4% to 3.89p; basic EPS decreased to a loss of 1.49p.

• Profit after tax from discontinued operations of £8.0m, with an £11.4m gain on sale.

• Overall profit attributable to shareholders of £6.1m (2024: loss of £0.3m); diluted basic profit per share of 4.37p.

• Cash position of £34.2m at year-end (2024: net debt £20.1m) after divestments and RCF repayment.

• Free cash flow decreased to £3.3m; FCF excluding exceptional costs increased to £5.1m.

Outlook and guidance

• Q1 revenues trading c.18% ahead of prior year, with Power Brands up c.13% and gross margin improvement from new launches.

• Board confident in meeting guidance for the 17-month period ending 31 May 2026.

• M&A pipeline active, targeting immediately earnings-accretive acquisitions in core and adjacent categories.