Vita Life Sciences, which owns brands such as VitaHealth and Herbs of Gold, reported that its domestic Australian market also reported a revenue growth of 8%, due to new consumer acquisition in the pharmacy channels - particularly for Herbs of Gold.
The company announced its financial results for the first half of this year yesterday (August 25).
Total revenue climbed 14% from AUD$39.5m (US$25.6m) to AUD$45.5m (US$29.5m).
Profit after tax also went up about 12% from AUD$4.3m (US$2.8m) to 4.8m (US$3.1m).
Both Malaysia and Singapore were highlighted as the key performers for the past six months, with revenue from the two countries up 54% to AUD$21.9m (US$14.2m).
Factors driving growth include stronger retailer collaboration and product expansion in key pharmacy chains in Singapore.
“Revenue grew by 54% from AUD$14.2m (US$9.2m) to AUD$21.9m (US$14.2m), underpinned by exceptional performance in Malaysia and solid growth in Singapore.
“Performance in Singapore was supported by stronger retailer partnerships, intensified marketing campaigns, expanded product ranges in key chain pharmacies, and enhanced trade marketing activities.
“High levels of in-market consumer events have strengthened brand loyalty and contributed to robust sales momentum,” said managing director Andrew O’Keefe.
A total of 11 new products have been launched across Australia, Malaysia, Singapore during the period.
In the same vein, performance in its domestic Australian market had increased by 8% from AUD$18.2m (US$11.8m) to AUD$19.6m (US$12.7m), driven by strong growth in both health food stores and pharmacy channels. For instance, it has been working with Terry White Chemmart in expanding its pharmacy presence.
“Customer acquisition continues to grow, particular in the domestic pharmacy segment. Herbs of Gold has now established itself as a recognized brand in selected Australian pharmacies, enhancing its accessibility and market presence.”
The company currently has a total of 350 registered products spread across six markets, namely Australia, Malaysia, Singapore, Vietnam, Indonesia, and China.
New strategies for China, Vietnam
In contrast, revenue from China and Vietnam has suffered from softer consumer demand and the company has adopted strategies such as working with new partners to drive growth.
Sales in China and Vietnam were down from AUD$7.1m (US$4.6m) to AUD$4.1m (US$2.6m).
In China, sales have been set back due to transition to a new exclusive distributor and slower than expected handover.
“In China, export sales declined 45% from last year, impacted by the transition to a new exclusive distributor early in the year and a slower-than-anticipated first-quarter handover.
“Performance has improved in recent months as consumer demand recovers across major e-commerce platforms,” according to O’Keefe.
In Vietnam, the company has appointed a new exclusive distributor for the Herbs of Gold brand, while working alongside ConCung - one of the largest players in Vietnam’s mother and baby retail landscape.
“In Vietnam, sales were marginally lower than last year, due to softer offtake for VitaHealth and Herbs of Gold.
“To support growth in the second half, a broader channel strategy is being implemented, including the appointment of a new exclusive distributor for Herbs of Gold in the pharmacy and e-commerce channels, alongside continued collaboration with ConCung in the mum and baby segment.”
“The Board is encouraged by the Group’s first-half performance, particularly the strength in Australia, Malaysia, and Singapore, and expects this momentum to be maintained into the second half. While China remains a challenging market, recent improvements provide a cautiously optimistic outlook,” said O’Keefe.
