Vita Group Shares Tank As Telstra Gives It The Flick
Vita Group shares plummeted by more than 20 per cent as the ASX opened today, following Telstra’s move to regain control of its branded stores.
The company’s shares fell by 25 cents to $0.875 this morning, a drop of just over 22 per cent, while Telstra shares jumped 1.4 per cent to $3.215; as at 11am, Vita shares had fallen more than 27.5 per cent.
Vita Group operates 104 Telstra-branded stores across the country after inking a master licence agreement with the telco in 2009. Its dealer agreement with Telstra is now set to end on June 30, 2025.
In a statement to the ASX, Vita Group said it would work collaboratively with Telstra to ensure a suitable transition for both companies, as well as staff and shareholders.
According to CEO Maxine Horne, the company is “strategically prepared for a range of outcomes” and has been working to create a new growth opportunity in skin health and wellness.
“We have a 26-year partnership with Telstra and are committed to working professionally with them to ensure the best possible outcome for all parties.
“In addition to discussions with Telstra regarding transition arrangements, the remaining period of the Telstra licence arrangement will provide cashflow as we continue to grow the Artisan brand,” she said.
Artisan Aesthetic Clinics, established by Vita in 2018, is described as a “premium and bespoke medical aesthetics brand” offering products such as cosmetic injectables and laser and light-based therapies. The clinics were forced to close temporarily last year due to COVID-19.