Vita Group (ASX:VTG) - CEO, Maxine Horne
CEO, Maxine Horne
Sourced: The Sydney Morning Herald
Market Herald logo


Be the first with the news that moves the market
  • Australian retailer Vita Group (VTG) has released an update as concerns grow surrounding COVID-19
  • A Business Continuity Plan (BCP) has been enacted to address key areas of impact and risk
  • “Robust performance” in the first half of FY20 is expected to taper off as the company experiences a reduction in footfall and revenue
  • The company has also said that it will scrap its previously announced interim dividends of 5.3 cents per share
  • Shares in Vita Group are down 11.1 per cent to trade for 64 cents

Australian retailer Vita Group (VTG) has released an update to investors as concerns grow surrounding the COVID-19 outbreak.

The company specialises in enhancing customer experience across a wide range of brands. With more than 1,700 employees and over 120 points of presence nationwide, Vita generated $753.7 million in revenue over the 2019 financial year.

Today’s announcement revealed the enactment of a Business Continuity Plan (BCP), which will address pivotal areas of impact and risk relating to the virus. Factors include health and safety, continuity of service to customers, supply of stock and financial impacts.

Despite “robust performance” for the first half of financial 2020, Vita is expecting a drop-off in both footfall and revenue for the rest of the year. As such, the company has said that it’s unable to offer any guidance for the year at this point.

All of Vita Group’s customer-facing outlets and digital stores are currently open. The company is also working with its strategic partner, Telstra, to manage any impacts to its store network.

Due to the widespread uncertainty regarding the virus, Vita has also announced it will cancel its planned dividend distribution. Earlier this year, the company announced that it would issue interim dividends of 5.3 cents per share, to be paid on April 9.

Maxine Horne, CEO of Vita Group, acknowledged that the news would be a disappointment to investors.

“These are unprecedented times and we are adapting our business to manage the risks and impacts relating to COVID-19.

“I can understand that the decision to cancel the interim dividend may be disappointing to some shareholders, however, it is a necessary action in a difficult and uncertain environment, and one that is aimed at protecting our business for the long term,” she said.

Shares in Vita Group are down 11.1 per cent to trade for 64 cents at 11:19 am AEDT.

VTG by the numbers
More From The Market Herald

" Nanollose (ASX:NC6) signs collaboration deal with Paradise Textiles

Nanollose (ASX:NC6) pens a collaboration agreement with Paradise Textiles in an aim to create a more…

" A2 Milk Company (ASX:A2M) sees drop in China market

The A2 Milk Company (ASX:A2M) sees the infant formula market in China continuing to be a…
New Zealand King Salmon (ASX:NZK) - CEO and Managing Director, Grant Rosewarne

" New Zealand King Salmon Investments (ASX:NZK) raises $45.75m to pay off debt

New Zealand King Salmon Investments (ASX:NZK) has raised NZ$50.3 million (A$45.75 million) through a rights offer…

" Fiji Kava (ASX:FIJ) launches tea range on Amazon USA

Health and wellness company, Fiji Kava (ASX:FIJ) has launched three products from its tea range on…