Vita Group Provides HY 2018 Results

Vita Group Limited (ASX:VTG) today reported a solid performance for the six months to 31 December 2017, despite challenging industry conditions.

The group delivered revenues from continuing operations of $329.6 million, four per cent lower than prior year; with earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations of $20.0 million, down 43 per cent on prior year. Net profit after tax (NPAT) was $11.2 million.

These results were well ahead of guidance provided to the market in October 2017, and in line with upgraded guidance issued in January 2018, reflecting a stronger October to December trading quarter, supported by an earlier relaxation of constraints on iPhone 8 and iPhone X inventory after launch, and the group’s rigourous focus on cost control.

Operating cash flows after tax were $18.0 million, reflecting strong cash conversion and additional investment in working capital in support of the iPhone 8 and iPhone X launches. Vita invested a net $13.2 million in acquisitions, refits and technology solutions, which will deliver benefits into the future. Financing outflows were $12.0 million, primarily reflecting $11.3 million in dividends paid in the period. The cash balance at the end of the half was $22.5 million and the group had no net debt, positioning it strongly for ongoing investment in growth opportunities, in line with Vita’s strategy.

Vita maintained its dividend payout ratio at 65 per cent of profits after tax. The Board declared a fully franked interim dividend of 4.7 cents per share, to be paid on 13 April 2018 to shareholders on record as at 29 March 2018.


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