XXXXX DIRECTORS’ REPORT
Gross profit margins on products sold increased from 17.0% to 17.3%. As a reward to members for their support of the business through increased purchases of warehoused product during the financial year, in June a rebate of $198,587 (2020 $104,334) was paid to member stores. The rebate was based on the level of purchases made and is a reduction in the purchase price of the products The Group reduced the balance of money owing to members by $316,663 (2020 $772,137) this financial year. It is the intention of the Board to continue to reduce this balance over the next financial year. On 30th of August 2021 the Company’s E-commerce site went live. This coincides with increased E-commerce activity nationwide because of lockdowns. The Company experienced a decline in sales in August 2021 because of lockdowns which then meant it was eligible for the Jobsaver program. Financial Review Key financial headlines of Go Vita Group Limited’s 30 June 2021 results are: Revenues of $35,235,156. Underlying profit after tax of $630,991. Reduction in the balance of money owing to members by $316,663.
legislative landscape for retailers with COVID-19 restrictions); access to a communications and training platforms to share knowledge and information; including conference, the weekly newsletter and a now a dedicated app to support further training for instore teams There have been no significant changes in the nature of these activities during the year. Environmental Regulation and Performance The directors are not aware of any material issues affecting the Company or its compliance with the relevant environmental agencies or regulatory authorities. The company is a member of the Australian Packaging Covenant Organisation (APCO) which is concerned with reducing the environmental impacts of consumer packaging in Australia.
Review of operations
COVID-19 Impacts FY2021 was influenced by the COVID-19 pandemic. There was an increased focus on health by consumers which contributed to higher sales. The Group did not receive any government subsidies beyond the universally available ATO cashflow boost scheme and NSW payroll tax refunds. Trading Review and Outlook The consolidated after-tax profit of the Group for the financial year amounted to $630,991. In 2020 this was $668,988. Stock sales were up 0.8% on last year. This was a combination of a several factors including new member stores, increased sales to non-member stores, new distributed brands utilising the warehouse and the expansion of the private label vitamin and food ranges.
Rebate paid to member stores of $198,587. Cashflow provided by operations of $1,215,883.
Comparison with Prior Period A larger trading rebate was paid in the 2021 financial year compared to the 2020 financial year. If that rebate is added back purely for explanation purposes the resulting figure is slightly ahead of the results for the 2020 financial year.
I GO VITA GROUP LIMITED ANNUAL REPORT 2020-2021 32
Made with FlippingBook Learn more on our blog