Vita Group’s Profits Up After Telstra Exit
Telstra Store licensee Vita Group has posted growth in EBITDA and profit despite declining revenues.
Vita Group, which was rocked this year by Telstra’s announcement that it would take direct control of all its branded stores, saw revenue fall 18 per cent to $633.5 million due to the impact of COVID-19, though EBITDA increased one per cent to $50.3 million and net profit after tax (NPAT) rose 17 per cent to $26.3 million.
Revenues for Vita’s Information and Communications Technology division dropped 20 per cent, which the company ascribed to reduced foot traffic from COVID lockdowns, restrictions, and social distancing. The company sold off three of its Telstra Business Technology Centres, as well as its Vita Enterprise Solutions business.
CEO Maxine Horne described FY21 as a “challenging year”, with pressures coming from all sides including COVID-19 and changes in the ICT industry.
“The team has worked extremely hard to deliver results in both Artisan and ICT and I’d like to express my gratitude to each of them. Our focus on consulting with our clients to add value to them has never wavered and has supported our result in this tough period.
“Our performance amidst all of this is to the team’s credit, and I thank them all sincerely,” she said.
Discussions with Telstra are ongoing regarding the transition of Vita’s franchised Telstra Stores into the telco’s direct ownership and control, a move Telstra announced in February. Vita Group says it plans to grow its Artisan Aesthetic Clinics brand, which saw a 41 per cent rise in revenue this year.