Shares in international consumer self-care group Venture Life group (LON:VLG) sunk on Thursday, despite reporting an increase in both revenue and gross profit.
Revenues for the group were up 57 percent to £14.3 million for the year ended 31st December, up from £9.1 million in 2015.
Gross profit increased 83 percent to £5.5 million, giving a gross margin of 38 percent. Adjusted EBITDA profit stood at £0.8 million, an improvement on 2015’s loss of £0.6 million.
Sales growth continued to be strong in China for the second half of 2016, with the trend looking set to continue into 2017 with two long term distribution agreements, including one on UltraDEX, signed this year.
Commenting on the results, Jerry Randall, Chief Executive Officer of Venture Life, said:
“Venture Life has had a significant year along its path to becoming sustainably profitable. Revenue growth of 57% and our first EBITDA profit demonstrates the focused strategy of the Group is working.
“Increasing revenues through our business are enhancing margins, and this year the Group has demonstrated its ability to grow successfully through both organic and acquisitive means.
“First international partner deals on both UltraDex and Benecol ‘once-a-day’ liquid sachets confirm the appetite for these excellent products, and we continue to expand and strengthen our distribution networks for these and our other brand products.
“We have strengthened our commercial team and developed three new and innovative products through our on-going R&D efforts, and we look forward to the continued growth and momentum throughout 2017.”
Venture Life focus on developing, manufacturing and commercializing products for the ageing population, including the sales of branded healthcare and cosmetics products direct to retailers as well as manufacturing services under contract development.
Shares in Venture Life are currently down 2.94 percent at 66.00 (1241GMT).
