Venture Life Group PLC Trading Statement (3242O)
31 January 2023 - 6:00PM
UK Regulatory
TIDMVLG
RNS Number : 3242O
Venture Life Group PLC
31 January 2023
31(st) January 2023
VENTURE LIFE GROUP PLC
("Venture Life" "VLG" or the "Company")
Full Year Trading Update
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(st) December 2022 "the
year".
Overview
The Group expects to report revenues for the year of GBP44.0m
(2021: GBP32.8m), an increase of 34% over the reported revenues in
the previous year and slightly ahead of market expectations. On a
proforma basis(1) , assuming the acquisitions in 2021 had been in
place for the whole of 2021, the Group delivered 17% revenue
growth.
Key Highlights:
-- Group revenues of GBP44.0m (2021: GBP32.8m), a growth of 34%
over the reported revenues in the previous year.
-- Revenues from Venture Life Brands grew 29% to GBP23.2m (2021:
GBP18.0m) and Customer Brands grew 41% to GBP20.8m (2021:
GBP14.8m).
-- Adjusted EBITDA(2) is expected to be at least in line with market expectations.
-- Positive trading momentum post year end, supported by the
order book which is 114% ahead of the same point last year on a
like for like basis.
Venture Life Brands represented 53% of revenues for the Group in
the year (2021: 55%). The slight reduction in mix compared to the
prior year being due to the strong performance of the Customer
Brands business. However, with the recent acquisition of Earol,
which is expected to be a valuable contributor to both revenue and
profitability in 2023, and further growth from the Venture Life
brands this percentage split in favour of the Venture Life Brands
is expected to increase in 2023.
Whilst the temporary change in revenue mix has a small dilutive
impact on the gross margin percentage, the Company's overall gross
margin percentage improved over the previous year and absolute
gross profit is expected to be at least in line with market
expectations.
Adjusted EBITDA(2) is expected to be at least in line with
market expectations and Group leverage(3) (excluding finance
leases) in the region of 1.4x net debt to Adjusted EBITDA (31(st)
December 2021: 0.4x) reflecting the impact of the recent
acquisition of Earol. The strength of the order book had some
impact on inventory levels at 31 December 2022, which reduced less
than anticipated and remained broadly in line with those reported
at the half year.
Group leverage is expected to fall in 2023 to 1.0x or lower due
to the cash generative nature of the business, now including the
highly cash generative Earol brand, and bolstered by strong post
year end cash collection.
Jerry Randall, Chief Executive Officer, commented: "The revenue
growth seen by the Group this year has been a continued combination
of organic and acquired growth. The full year effect of the
acquisitions made in 2021 has positively contributed to both
revenues and profitability, as well as delivering organic growth
across the ex-BBI brands. The Customer Brands team at Biokosmes
delivered an exceptionally strong year, supporting many customers
with their inventory positions to protect against the ongoing
supply chain difficulties. I am delighted that overall the Group
has demonstrated good revenue growth on a like for like basis in
what has been a very challenging year globally. Our supply chain
team has done an excellent job to ensure that at all times we have
had the raw materials and packaging to manufacture to meet our own
brand and customers' needs."
1 Proforma basis i.e. if the acquisitions of BBI Healthcare and
Helsinn had been in place for the whole of the prior year
2 Adjusted EBITDA is EBITDA before deduction of exceptional
items and share based payments
3 Group leverage calculated using proforma EBITDA on a trailing
12-month basis
For further information, please contact:
Venture Life Group PLC +44 (0) 1344 578004
Jerry Randall, Chief Executive Officer
Daniel Wells, Chief Financial Officer
+44 (0) 20 7397
Cenkos Securities plc (Nomad and Joint Broker) 8900
Michael Johnson/Russell Kerr (Sales)
Stephen Keys/Camilla Hume (Corporate Finance)
+44 (0) 20 7496
Singer Capital markets (Joint Broker) 3000
Jonathan Dighe (Sales)
Shaun Dobson/Alaina Wong (Corporate Finance)
About Venture Life ( 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 UltraDEX and Dentyl oral care product
ranges, the Balance Active range in the area of women's intimate
healthcare, the Lift and Glucogel product ranges for hypoglycaemia,
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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