Vita Group Limited (ASX: VTG) – Vita Group Rises on FY18 results that are within guidance

0
426
Vita Group Rises on FY18 (VTG)- Kalkine Media

Australian retailer, Vita Group today announced actual well within guidance results for past one year ending 30 June 2018. The group delivered 3% increase on revenue from continuing operation to $684.5 million during the year. Despite challenging industry conditions emerging from shift in consumer preferences and increasing online competition, Vita Group achieved earnings before interest tax, depreciation and amortisation (EBITDA) of $41.0 million, strikingly down by 37% on FY17 but well within guidance of the company. This decline of $24 million reflects remuneration reduction and adverse product mix, however, ICT channel of the business bagged higher revenue driven by strong device sales in second half of FY18. Net profit after tax was $22.0 million, down 44%, while there has been four percent cut in operating expenses. EPS stood at 14.13 cents, representing considerable decline of 45.46% on FY17 EPS.

The group delivered slow pace growth than its retail peers with operating cash flows of $36.6 million and cash balance of $31.6 million at 30 June 2018, which is in excess of total borrowings, providing flexibility for investment in growth opportunity ahead. Expert consulting group operating through networks of brands invested $26.8 million in acquisitions, refits and technology across both the Information and Communication Technology (ICT) and Non-Invasive Medical Aesthetics (NIMA) business. Vita’s physical portfolio, as at 30 June 2018, included 105 Telstra Licensed Stores, 23 Telstra Business Centres, one Fone Zone store, one SQDAthletica store, six Clear Complexions clinics procured in November 2017 and one newly acquired Artisan Cosmetic & Rejuvenation clinic.

In line with the strategy to establish a national network of aesthetics clinics, the group is expected to launch new customer-facing brand in early FY19. The Board declared a fully-franked final dividend of 4.4 cents per share, resulting in a fully-franked full year dividend of 9.1 cents per share, 45% down on FY17. The final dividend is payable in September 2018 to shareholders on record as at 14 September 2018.

VTG share price jumped up on ASX by 7.62% to $1.13, as at August 17, 2018, before market close.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

Join Our Discussion

Start discussion with value Investors for ASX Stock Market Investment and Opinion.


6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report
Previous articleVita Group Limited (ASX: VTG)
Next articleBeacon Lighting Group Ltd (ASX: BLX)
Hina Chowdhary
Hina Chowdhary is the Head of Equities Research at Kalkine and has extensive experience of about 10 years in the area of Research and 4 years in Equities Research particularly. She has earned a Master of Science degree from the renowned Indian Institute of Technology. Hina’s work profile entails in-depth analysis for stocks using a diverse set of financial data tools and models in order to provide appropriate investment opportunities and insights on which stocks to buy, sell or hold. She has hands-on experience in developing industry breaking equity news, company specific investment themes/ ideas, and other equity research related products. She is featured regularly in the Money section of Sydney Morning Herald and The Sun Herald

LEAVE A REPLY

Please enter your comment!
Please enter your name here