MANAGING DIRECTOR’S REPORT
conditions, and prudent governance by management with oversight by the board ensures we do that. Whilst numbers of Members have remained largely static, Member purchases through the warehouse have shown some decline but we have bolstered this with the broadening of our service to select independent health and wellness businesses. As you can see from the graph, Independent business had grown by the end of the financial year to represent 14.3% of our sales and over $5 million in revenue. It’s also important to note that purchases by Independents generate a higher gross profit as they don’t benefit from the favourable buying price enjoyed by our Members. Overall, we’ve been able to achieve a small 1%
Our results After returning a rebate to Members in 2019-2020 for the first time in 5 years, we were able to deliver an even stronger result in 20-21, exceeding even our own budget numbers. Before taxes and rebate, our profit increased by 3% of the previous years profit. This enabled us to return double the rebate this year
Profit 3%
Rebate $198,587
compared to last year while retaining earnings to ensure we have provision for not only the uncertain economic and retail climate ahead, but to allow us to invest in additional services to support our Members. This aligns with our stated objective over the past few years of shoring up our Balance Sheet, reducing debt and improving liquidity. In times of great volatility and some uncertainty, it’s important that the organisation has the buffer to be able to withstand sudden changes in market
increase in overall revenues compared to 2019-2020 so with better margins and very slightly decreased costs, we were able to achieve an increase in trading profit.
Total Revenue $35,433,743
50,000,000
38,825,942
50,000,000 4 , ,
33,593,064
30,421,935
30,137,015
38,825,942
30,354,393
Member and Non-Member Contribution
40,000,000 30,000,0
33,593,064
30,421,935
30,137,015
30,354,393
30,000,000 2 , ,
20,000,000 1 , ,
5,222,829
3,936,717
3,737,942
5,079,350
744,926
10,000,000 —
5,222,829
3,936,717
3,737,942
744,926 2017
2018
2019
2020
2021
5,079,350
—
Member contribution
Non-Member contribution
2017
2018
2019
2020
2021
Member contribution
Non-Member contribution
I GO VITA GROUP LIMITED ANNUAL REPORT 2020-2021 18
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