Go Vita 2022 Annual Report

GO VITA GROUP LIMITED ANNUAL REPORT 2021-2022

“We are a co-operative and each of our stores is individually owned and operated, each is unique and this, we truly believe, is one of our greatest strengths. Through the collective efforts of the co-operative, our stores are able to offer better prices, extensive product offerings and more services to all customers.”

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CONTENTS

Who we are

About Us

6 7 8 9

Key events in Go Vita’s History

Our Purpose and Vision Our Strategic Pillars

Our Brands

2 3

2021-2022 Year in review

Chairman’s Report

14 17

Managing Director’s Report

The Go Vita Executive Team

The Board of Directors

24 26

The Executive Leadership Team

The 2021-22 Go Vita Group Limited Financial Report 29 Directors’ Report 30 Auditor’s Independence Declaration 37 Corporate Governance Statement 38 Consolidated Statement of Profit and Loss and Comprehensive Income 44 Consolidated Statement of Financial Position 45 Consolidated Statement of Changes in Equity 46 Consolidated Statement of Cash Flows 47 Notes to the Financial Statements 48 Directors’ Declaration 68 Independent Auditor’s Report to the members 69

GO VITA GROUP LIMITED ANNUAL REPORT 2021-2022 I 3

“For more than 30 years, Go Vita health food stores have led the health and wellness industry in Australia, helping people in communities across the country to embrace health and wellness through awareness, education and support.”

I GO VITA GROUP LIMITED ANNUAL REPORT 2021-2022 4

About Us WHO WE ARE 1 Key events in Go Vita’s History

6 7 8 9

Our Purpose and Vision Our Strategic Pillars

Our Brands

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ABOUT US

For more than 30 years, Go Vita health food stores have led the health and wellness industry in Australia, helping people in communities across the country to embrace health and wellness through awareness, education and support. We are a co-operative and each of our stores is individually owned and operated, each is unique and this, we truly believe, is one of our greatest strengths. Through the collective efforts of the co-operative, our stores are able to offer better prices, extensive product offerings and more services to all customers. We love what we do and are proud of the reputation we have built for Go Vita – the place to go for trustworthy, professional and personalised health and wellness advice, and an extensive range of products and services. We have over 300 natural health practitioners working across our stores nationwide. Go Vita operates a modern warehouse and distribution centre in Sydney, from where we distribute to health food shops around Australia. We are committed to making a positive difference in this world. Our focus is on promoting health and wellbeing for all. And in all that we do, preserving the planet is critical – whether looking at packaging for new products or execution of promotional campaigns we consider the impact on the environment and community as a whole.

The Business Council of Co-operatives and Mutuals (BCCM) : Australia’s only peak body for co-operatives and mutuals across all industries.

The National Retail Association (NRA) : A not-for-profit organisation that represents the interests of retailers across Australia. Australian Packaging Covenant Organisation (APCO): A not-for-profit organisation leading the development of a circular economy for packaging in Australia.

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KEY EVENTS IN GO VITA’S HISTORY

1987 Go Vita Distributors Limited (GV) listed with ASIC

1999 GV launches NutriVital Supplements

2015 GV expands distribution to all health food stores Australia-wide GV purchases Organic Road brand

2016 GV expands into larger warehouse at Wetherill Park

2019 Company name changes to Go Vita Group Limited(GVGL)

2020 GVGL adopts a new constitution as a Co-Operative

2021 GVGL convertsto a public company limited by shares owned by Co-Operative Members 2022 GVGL launches Truthful Foods Kombucha Activated Raw Nuts range and NutriVital Professional Range.

GO VITA GROUP LIMITED ANNUAL REPORT 2021-2022 I 7

OUR PURPOSE “To provide relevant and innovative products and services which enable our Members to operate successful and sustainable health and wellness businesses.”

OUR VISION “To be the pre-eminent health and wellness group, valued by our customers for our trusted and personalised wellness advice, products and therapies.”

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OUR STRATEGIC PILLARS

1 2 3 4 5 6

Membership We will grow the footprint and quality of the membership base by demonstrating the value of member services and support. Product Portfolio We will have a readily accessible portfolio of products and services that meet the current and emerging needs of our members and their customers. Brand We will have brands that are relevant and recognised as delivering to our customers’ needs. Marketing We will invest wisely in effective marketing activities which drive profitable revenue to our company and members. Financial Performance We will have the funding model and financial performance that ensures returns to members and investment in our ongoing success. Organisation We will have fit-for-purpose organisation assets, resources and capability that enables us to deliver on our strategies.

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OUR BRANDS

Truthful Foods Kombucha Activated Raw Nuts were launched in 2022, filling a need in the functional food and healthy snacking space. At Truthful Foods we’re all about telling the truth! Truth in ingredients, manufacturing and labelling. We know activated nuts are better for your gut but ours are long-soaked in green tea Australian kombucha – so you also get a boost of gut-loving probiotics! Australian made, these super crunchy, delicious nuts are packed in 100 percent recyclable packaging.

The NutriVital health supplement range has been available in Australia for around 20 years and is recognised as a premium range of practitioner formulated health supplements. In recent years focus has been put behind expanding this range to ensure it is a significant player in the health supplement space. It is a health food channel exclusive range.

In 2022 the NutriVital Professional range was launched. With over 95 percent of Go Vita health food stores employing natural health practitioners, NutriVital Professional provides a concise practitioner only range for the health food channel.

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Go Vita also owns the Organic Road brand of certified organic foods – purchased in 2015, though the brand was established in 2006. Organic Road products are sourced from leading organic and biodynamic suppliers in Australia and all over the world. While we would love a world where organic food was not a choice but the only option, there are still some high quality products that we have access to that are not available organically in sufficient and sustainable quantities so we introduced the Natural Road brand to provide high quality natural products with no nasties. These ranges also continue to grow and expand with new products.

We recognised a gap in the apple cider vinegar market and launched Cleopatra’s Apple Cider Vinegar in 2018, a certified organic apple cider vinegar produced from fresh New Zealand apples with the “Mother”.

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CHAIRPERSON’S REPORT “I am immensely proud of the spirit of the Go Vita team that pulls together in times of adversity. We work diligently to govern your co-operative professionally and ethically and are keen for all Go Vita shareholders to have a better understanding of how we do that on your behalf. ”

We are members of: Complementary Medicines Australia (CMA) - The peak industry body for the complementary medicines industry representing manufacturers, raw material suppliers, distributors, consultants, retailers, allied health professionals and educators. The Business Council of Co-operatives and Mutuals (BCCM) : Australia’s only peak body for co-operatives and mutuals across all industries. The National Retail Association (NRA) : A not-for-profit organisation that represents the interests of retailers across Australia. Australian Packaging Covenant Organisation (APCO): A not-for-profit organisation leading the development of a circular economy for packaging in Australia.

Trish Ridsdale, Chairman

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CHAIRPERSON’S REPORT 2021-22 YEAR IN REVIEW 2 Chairman’s Report 14 Managing Director’s Report 17

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CHAIRPERSON’S REPORT CHAIRMAN’S REPORT

It is my privilege to provide the Chairman’s Report in the company’s second Annual Report. Last year I said that we expected the 2021-2022 year to be a year of continued uncertainty at scale. And

that is certainly how it panned out. Like many companies we were impacted by the very tight employment market, lack of access to staff due to illness and isolation requirements and supply chain issues that impacted the availability of products from our suppliers. The challenges were felt across the country as service providers to our business also struggled to have available staff to deliver services to us in a

“The benefit of being a member of a co-operative is that while you are independent business owners you are never alone. We have the opportunity to leverage the power of many by working together for the benefit of all.” Trish Ridsdale, Chairman.

timely way. We have seen rapid rises in costs across the board particularly in distribution, and these have had a significant impact on our business. Despite all of this, the staff and management at Go Vita have gone above and beyond to continue to deliver products and services to you throughout the year. For a time, many members of the management team (including the MD) were taking shifts in the warehouse to pack orders so that your deliveries could be sent to you. Our staff were doing their job and the work of others when staff availability was a problem. I am immensely proud of the spirit of the Go Vita team that pulls together in times of adversity. As usual, I will report here on the issues affecting you as shareholders of Go Vita and leave it to Managing Director, Clinton Hayes to report on the issues affecting you as customers. Overall Company Performance The Board and management team have worked very hard in recent years to improve the financial performance of the Company. We have focused on delivering profitable

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CHAIRPERSON’S REPORT CHAIRMAN’S REPORT

results, repaying loan balances, returning to rebate payments and prudently retaining earnings. This has placed us in a good position to absorb the negative impacts of a difficult year. For the 2021-2022 financial year, the Company produced a consolidated after-tax loss of $57,388. During that time, we continued to reduce our member loan position by an additional $260,700 and we invested in building organisational capability including our e-commerce website and our GVGL Field Team. The Board prudently determined that it was not possible to pay a rebate this year. Based upon our cash reserves, undrawn finance facilities and expected ongoing earnings, we are confident the Group has sufficient funding capacity to meet all of our obligations. The Board will continue to monitor the performance of the company carefully and the management team will be exploring new sources of revenue, increasing revenue from existing sources, managing expenses carefully and driving the return from our organisation capability investments. Strategic Priorities As is the case each year, the board and management team met to discuss our strategic priorities and for the 20 - 23 financial year, has taken a more focused approach across fewer projects to ensure some key basic priorities are met.

These are:

1 2 3 4

Ensuring adequate service levels to Members Maximising value from the Crossmark investment Driving higher sales performance through E-commerce Data and process automation project

We will also continue to assess and re-evaluate our business model to ensure Go Vita is a strong force in the market for a long time to come. Corporate Governance Over the past few years, we have done much to evolve the corporate governance practices of the organisation and educate the membership base about the importance of governance standards to the success of the business. We have particularly put more effort into communicating the expectations of Member Directors who assume significant responsibility and liability when they offer themselves to service on the Board of Go Vita Group Limited. During the 2021-2022 year, we again conducted a governance training session for any members who were considering standing for a Member Director position or who simply wanted to understand more about corporate governance and how we do that at Go Vita. We will continue to offer these sessions annually and will encourage more members to attend because understanding how your co-operative is governed is important and should provide reassurance that a very professional approach is being taken to the governance and management of Go Vita.

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CHAIRPERSON’S REPORT CHAIRMAN’S REPORT

alone. We have the opportunity to leverage the power of many by working together for the benefit of all. Recognition On behalf of the Board, I would like to extend our thanks to all of the Go Vita staff for their dedication, professionalism and diligence throughout the year in very trying circumstances. We are grateful for the excellent leadership that Clinton Hayes and the Executive Team have shown through challenging times. I would also like to extend thanks, on behalf of myself and the shareholders, to the Directors on the Go Vita Board. The Member Directors - Simon Becher, John Bylicki, Harry Karabalis and Alison Harris – take time away from their businesses every month to make your businesses more successful. They have diligently and professionally performed their director duties and make decisions in the best interest of the co-operative not their own businesses. They are a credit to member directors. Special mention to Chris Mobbs from Go Vita Ballarat who at the request of the Board has served as a member of the Audit and Risk Committee. My thanks also to Independent Director, Bob Peterson, who provides great counsel to myself and the other Directors and encourages us to think differently about the issues we consider. And finally to our Managing Director, Clinton Hayes, who has provided constant leadership to staff and members with dedication, responsiveness and good grace despite the challenging times. It continues to be my pleasure to serve with you all.

As part of the governance education of the Go Vita Group as a whole, the Board last year developed a Corporate Governance Charter which details how we do governance at Go Vita. It is available to all shareholders on VitaCloud. In addition, in this report, we have included a Corporate Governance Statement which considers our governance practices relative to the BCCM CME Governance Standards. The BCCM is the Business Council of Co-operatives and Mutuals of which Go Vita Group is a member. The BCCM in 2018 developed a set of governance standards appropriate to CME’s (Co-operative and Mutual Enterprises.) These have been modelled on the ASX Corporate Governance Principles but nuanced to reflect the special nature of co-operative and mutuals. We work diligently to govern your co-operative professionally and ethically and are keen for all Go Vita shareholders to have a better understanding of how we do that on your behalf. 2022-2023 I would love to be able to say that the 2022-2023 year will be a return to stability in a post covid normal world. But I think we all understand that supply chain issues, labour shortages, economic pressures, and global uncertainties will continue to negatively impact business and consumer confidence for some time yet. The Board and management team have been cautious and conservative in their expectations for the year. We will continue to forensically monitor the company performance throughout the year and will take corrective action if need be. Last year I encouraged all of you to carefully monitor your own cashflow forecasts as we navigate uncertain times and I repeat that caution to you again this year. The benefit of being a member of a co-operative is that while you are independent business owners you are never

Trish Ridsdale, Chairman 11 October, 2022.

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CHAIRPERSON’S REPORT MANAGING DIRECTOR’S REPORT

“Coming together is a beginning. Keeping together is progress. Working together is success.” Henry Ford

Coupled with this were some significant impacts from labour shortages through people having to isolate or encountering the general effects of COVID restrictions. Additionally, with very low unemployment rates, there was both a skills shortage and movement of people, utilising the labour scarcity in the market to make a change in their career and remuneration. It’s also been an interesting year for the Membership in that the significant time that we’ve spent isolated from each other has meant that some of the relationships developed and the camaraderie normally prevalent in the Go Vita group diminished.

In Go Vita’s history, never before has the above statement been more relevant. The interests of the cooperative are best served when all the shareholders, Members and stakeholders of the cooperative work together to ensure its success. In keeping with the principles of the cooperative, it is incredibly important that we continue to work together to ensure the success of the business overall. This financial year, more than any other time, illustrates this point as we rely heavily on us working together to support the business and encourage the continued evolution and progress of the business.

In common with what’s happening across Australia, business for Go Vita during the 2021 - 2022 financial year has been pretty tough and our sales were down on the previous year. However, yet again, we are seeing the rise of the independent business and its share of the overall Go Vita sales. This is important additional business for the warehouse with the significant contribution to overhead from our independent customers.

Our inability to meet and exchange thoughts and ideas and to share how GVGL is facing the challenges ahead led to a disengagement and indeed some disenchantment. That environment was certainly fertile ground for a range of alternative views as all of us grappled with understanding the changing market. The mini conference in March and the Member meetings undertaken post the end of financial year were

opportunities to rebuild confidence and trust, to listen and understand the issues that are important to our Members. And most importantly they enabled us to reunite as one after a couple of years of separation. It’s also important to remember the shared responsibilities of both shareholders/Members and the head office group, GVGL, in the continued success of the cooperative. Our business relies on us working together, recognising the role each of us plays in ensuring a strong, successful and resilient business.

Whilst the initial years of COVID saw a marked increase in our sales, the reverse was true in the past financial year. The impact of lockdowns, supply chain issues and raw material sourcing all conspired negatively to reduce our sales. Further exacerbating the downturn was the loss of four stores during the year through store sales, closures or exiting the group and some of these stores had contributed notable income for the group.

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MANAGING DIRECTOR’S REPORT

As can be seen from the graph below, Independent business had grown by the end of the financial year from 14.3% of our sales to 18.5% or over $6 million, up over a $1 million on last year.

Our results After a couple of very strong years and although we budgeted for a reduced profit this year, we unfortunately came in with a very small before-tax loss of 0.26%. Whilst a loss is never good to report, mitigating the amount to such a small percentage, given the difficult year, may be considered a reasonable outcome by general standards. However, given that our last year’s profit was only 2.94% of our sales, it easy to see how quickly we can tip into a small loss. The good news is that our Balance Sheet remains strong and the auditors have re-affirmed our financial stewardship of the co-operative. Certainly the acumen and diligence that our CFO, Tim Penney and his team have exercised over the preparation of the accounts and the adherence to accounting standards are, in the words of the auditor, exemplary. Whilst numbers of Members have dropped slightly, Member purchases through the warehouse have shown a marked decline and our results have once again been bolstered by the continued support of independent health and wellness businesses.

At the same time, sales through our Members has declined by nearly $4 million.

Total Revenue $32,438,473

As we stated last year, 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, our total revenue has declined by nearly $3 million. Private Label sales, which includes our brands NutriVital, Organic Road (OR) and Natural Road (NR), Cleopatra’s and Truthful Foods have overall performed well. NutriVital continues to be the performer, up 8% on the previous year and garnering strong support from both Members and independent businesses alike. 2021-2022 was not without its challenges with continued difficulties in securing raw materials, delays in

50,000,000

38,825,942

40,000,000

33,593,064

30,421,935

30,137,015

30,354,393

30,000,000

Member and Non-Member Contribution

20,000,000

10,000,000

5,222,829

3,936,717

3,737,942

5,079,350

744,926

—

2017

2018

2019

2020

2021

Member contribution

Non-Member contribution

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MANAGING DIRECTOR’S REPORT

Sales After Rebate

manufacturing, lockdowns and freight delays all pushing out lead times. Despite this, NutriVital still managed to launch 21 new SKUs. The continuous work on bringing new products to market, refreshing the range and the development of a new label, particularly with their better margins, has helped to significantly assist in minimising our profit decline.

Once again, our buying team faced challenges of keeping major brands in our warehouse due to our more limited distribution model but have managed to attract new suppliers and renew a relationship with a major brand that had previously exited. Twenty-nine new suppliers have been added to our warehouse generating $1.5 million in revenue, which

Private Label Sales

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MANAGING DIRECTOR’S REPORT

helps mitigate the drop in sales from the brands lost to the warehouse. We also consolidated the range and 20 suppliers were reviewed and exited the warehouse. Organic Road and Natural Road ranged some new SKU’s during the year but overall performance of our food brand was flat, down 4% on the previous year. Truthful Foods was a calculated

“Those that work for Go Vita Group Limited are an incredibly hard working, passionate team of people committed to delivering the best outcome they can for our Members.”

move to appeal to a younger demographic with a better quality product in new packaging. It is taking some time to get recognition and traction in the market.

Looking Forward As I transition out of the role of Managing Director, our key Strategic Priorities remain the focus. It is incredibly important that Go Vita as a brand projects a clear and concise value proposition to consumers and we are able to stand out from an ever encroaching competitive environment. A consistency of presentation, core ranging and common “pillars” of a Go Vita store are essential elements in presenting a clear brand message to our customers. This is work that will require engagement by Go Vita Members through our Retail Refresh initiative, a project that is being reinvigorated for this financial year. Our Go Vita Field Team is a key driver in assisting our members to grow sales, build brand image, credibility and presence in an increasingly crowded market. This is a significant investment in our future and whilst early results are very encouraging, it is critical that we continue to grow sales and expand our reach to benefit the group. Furthermore, GVGL recognises the necessity of providing a compelling value proposition to our Members and a solid foundation of support for the network.

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MANAGING DIRECTOR’S REPORT

robust and respectful interaction that keeps us all on our toes. I think that by any standard we have achieved a level of professionalism unheard of in Go Vita’s past. The Executive Leadership Team at Go Vita: Ann Cattelan, Tim Penney, Greig Shanley, Steven Walda, Margaret Lucan, Leisa Coupar, Aura Chan, and the newly joined Margaret Leedham are the foundation of GVGL, ably supported by all those in the office and the warehouse. I’d like to thank them for their dedication and hard work. Given what they deliver with incredible demands on their time, it’s an astonishing team that manages to mix it with the very best in the health and wellness market.

Our E-Commerce is another key area of focus that will assist meet the objectives of both lifting the profile of the brand and reaching into previously untapped markets - those where we currently have no Go Vita store presence. Of course, it also provides an adjunct to each Member’s sales within their market area with hopefully an increased contribution to local revenues. The importance of accurate data in helping us make better informed decisions both for GVGL and Go Vita stores is the final key element for our strategic priorities. This can be achieved through visibility of both purchasing and sales and requires our systems to work together for mutual benefit. This has led us to explore both a POS solution that is common across the Go Vita network or a conduit link that enables access to this data. It’s a complex and evolving area for us and the implementation of a workable solution for GVGL and Members should reap enormous benefits for the group. Those that work for Go Vita Group Limited are an incredibly hard working, passionate team of people committed to delivering the best outcome they can for our Members. During the year, we have faced the challenge of staff turnover with some of our team leaving for other pursuits with some even returning after some months away. And, many of our team have stepped up, either broadening their role or working to assist others in our small and cohesive team. I’d like the acknowledge some of our team that are no longer in our employ but contributed to our business during the year. They are: Sophie Higgins, Michael McGeorge, Sarah Roxby and Yousaf Saifuddin. I particularly want to thank the board for their support in what has become an incredibly good working relationship between the Board and management team. Not reticent to deal with some divisive issues with clear,

I’d like the thank the Chair of our Board, Trish Ridsdale for her continued support, guidance and stalwart adherence to the principles of Board governance and the important role it plays in the oversight of the business. Thank you to all the members of the GVGL team for whom it has been a pleasure to work. And lastly to all our Members; thank you for your continued support and embrace of the cooperative.

Clinton Hayes, Managing Director 11 October, 2022.

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CHAIRPERSON’S REPORT “Our business relies heavily on us working together, recognising the role each of us plays in ensuring a strong, successful and resilient business.”

Clinton Hayes, Managing Director.

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CHAIRPERSON’S REPORT GO VITA EXECUTIVE TEAM 3 The Board of Directors 24 26 The Executive Leadership Team

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THE BOARD OF DIRECTORS

Patricia (Trish) Ridsdale Chair and Independent Director

Bachelor of Arts | Fellow of the Institute of Company Directors

Trish Ridsdale has been a Company Director for the past 17 years on the Boards of co-operatives, public companies, private companies, statutory authorities and not for profits. She has been a Director Educator for the past 26 years with the Australian Institute of Company Directors (AICD) and is a Fellow of the AICD. She currently serves also on the Board of the Rapid Group Co-operative Ltd and runs a consultancy practice called Board Business which specialises in strategy facilitation, board performance reviews, risk management and executive coaching. Trish is a member of the Audit & Risk Committee. Director since 28 October 2020 | Associate Director since 28 October 2019

Harilaos (Harry) Karabalis BE(Hons), BCom Member Director Harry Karabalis has experience working as a management consultant focusing on strategy and project management. Harry purchased Go Vita Woden (ACT) in 2015 from his parents and in 2019 he opened Go Vita Canberra City (ACT). Harry is a member of the Audit & Risk Committee. Director since 2019

Simon Becher

Alison Harris DipMgt Member Director

Member Director

Simon has held positions with GE Healthcare including the service operations leader for the Asia Pacific region. Simon owns Go Vita Stanhope Gardens (NSW) and Go Vita Windsor (NSW).

Alison has a strong retail background of 32yrs including 16yrs in Pharmacy and 16yrs in Health Food. She is a part owner and manager of both Go Vita Marion (SA) and Go Vita Colonnades (SA) stores and is responsible for keeping the books of account. Alison is a member of the Sustainability Committee. Director since 2017

Simon is the Chair of the Sustainability Committee. Director since 2017

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THE BOARD OF DIRECTORS

Clinton John Hayes DipFP GAICD Managing Director

John Bylicki DipFinPlan Member Director

Robert (Bob) Peterson MEI (Hons) Independent Director Bob Peterson holds multiple roles as Non-Executive Director / Chair in the broader healthcare sector, across medical clinics, medical devices, pharmacy and many modalities in allied health services, and he is experienced in a number of other retail networks across different industries and sectors. Bob serves as Chair/Non-Executive Director on a number of other non-conflicting private companies. Bob is a member of the Sustainability Committee. Director since 2020 Associate Director since 2017

Clinton Hayes has substantial retail experience, previously owning retail businesses including Go Vita Coffs Harbour (NSW). He was international Managing Director for an Australian company, responsible for an overseas start-up. He has worked in the banking and financial services industry and is a licensed financial planner and mortgage broker. Clinton is a member of the Australian Institute of Company Directors and has recently graduated from the Company Directors Course. Clinton is a member of the Audit & Risk Committee and the Sustainability Committee. Director since 2015

John Bylicki has had an extensive career in banking, insurance and financial planning as a Board Director, senior manager and business owner. He is a current Director of the Complementary Medicines Australia Limited (CMA). Including a Diploma in Financial Planning, John has an All Associate Diploma, Securities Institute of Australia Financial Planning Certificate and UNSW Business School Marketing Financial Services Certificate. John and his wife Linda own Go Vita Stanthorpe (QLD) and Go Vita Warwick (QLD). John is the Chair of the Audit & Risk Committee. Director since 2017

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THE EXECUTIVE LEADERSHIP TEAM

Tim Penney BCom, CA

Greig Shanley

Ann Cattelan BSc

CFO and Company Secretary

National Buyer & Category Manager

Marketing & Communications Manager

Tim Penney is a qualified Chartered Accountant and has been employed by Go Vita Group Limited for eleven years. Tim has been the company secretary for seven years. Tim has previously held positions with several professional accounting firms and has a degree in Commerce (accounting and finance).

Greig Shanley has over 30 years’ experience in the health and wellness industry having owned his own businesses in importing, food manufacturing and retailing. He has vast experience in supplier relations, pricing negotiations and product sourcing. He currently negotiates with over 200 suppliers and has developed Go Vita’s Organic and Natural Road ranges. Greig joined Go Vita over five years ago, though his association spans two decades as a previous owner of four successful Go Vita stores in Northern NSW. During this time, he was a Go Vita Board Director for 13 years.

Ann Cattelan is a complementary healthcare specialist with broad experience spanning 37 years. She’s worked with Go Vita for over 20 years. With a Science Degree in Biochemistry, and post graduate qualifications in Nutritional and Environmental Medicine and Marketing, Ann has worked in leadership roles in marketing and professional education capacities with a number of natural health brands, including Blackmores. A passionate contributor to industry, Ann was awarded the industry’s most prestigious accolade in 2010, the Lady Cilento Award for outstanding contributions and service to industry.

Steven Walda Supply Chain Manager

Steven has over 18 years’ experience in the retail and logistics sectors. Starting in the liquor industry from a casual while studying sports marketing and management at Macleay College to a multi-site store manager with over nine years at Liquorland. He then spent six years at Masters Home Improvement in freight management, store management and operations. Followed by IKEA in the logistics space at Marsden Park and at Rhodes NSW. Most recently Steven was with FEDEX as a Warehouse Operations Supervisor. Steven started with Go Vita in July 2022. Yousaf Saifuddin, previous Supply Chain Manager, left Go Vita at the end of May 2022.

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THE BOARD OF DIRECTORS THE EXECUTIVE LEADERSHIP TEAM

Leisa Coupar

Margaret Lucan

Margaret Leedham

Finance Manager – Human Resources

Service & Support Manager

NutriVital Brand & Training Manager

For over 12 years Margaret has worked across Go Vita Membership, Marketing and Accounts teams. She was appointed to the Service & Support Manager position in June 2022, as an acknowledgement of her experience and knowledge in the field of Membership. With over 35 years’ experience in administrative roles, including engineering and print industries, Margaret has developed the skill set to build a great working relationship with our Members and continues to actively seek new Members and Independent customers for Go Vita. Sarah Roxby, previous Membership Services Manager, left Go Vita at the end of March 2022.

Leisa Coupar has worked with Go Vita Group Limited for over 14 years, the past six years in her current role. With a Certificate in Human Resources, Leisa continues to keep up to date in this area with ongoing training courses. She is a qualified book-keeper, who set up her own business from home when her children were young. She also spent 25 years with the ATO in the superannuation section. Leisa was the first recipient of the Go Vita Employee of the Year Award in 2016.

Margaret, who commenced work with Go Vita in July 2022, is a qualified naturopath with over 22 years’ experience in the natural medicine industry, including product development, training and regulatory roles. She has also managed her own clinic and worked as a senior naturopath and assistant manager in a successful Go Vita store. Margaret is passionate about training and education and arming stores with the knowledge to be able to confidently recommend the right products and solutions for their customers specific health needs. Michael McGeorge, previous Brand Manager, left Go Vita in May 2022.

Aura Chan Digital Marketing & eCommerce Manager

Prior to Go Vita, Aura worked across the marketing domain in two of her own businesses and at AgriWebb, the 2016 Australian Startup of the Year. Aura has broad business acumen in defining, executing, managing and analysing campaigns across multiple channels to help increase company brand awareness, lead generation and revenue. She has a degree in International Relations and has completed Google advertising and eCommerce certifications, making her a valuable team member. Aura is obsessed with digital marketing and Ecommerce and loves using technology to analyse data to understand user behaviour.

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XXXXX

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2021

“It is incredibly important that Go Vita as a brand projects a clear and concise value proposition to consumers and we are able to stand out from an ever encroaching competitive environment.”

Clinton Hayes, Managing Director

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XXXX 2021-22 GO VITA GROUP LIMITED

Directors’ Report FINANCIAL REPORT 4 Auditor’s Independence Declaration Corporate Governance Statement

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2021

30 37 38

Consolidated Statement of Profit and Loss and Comprehensive Income 44 Consolidated Statement of Financial Position 45 Consolidated Statement of Changes in Equity 46 Consolidated Statement of Cash Flows 47 Notes to the Financial Statements 48 Directors’ Declaration 68 Independent Auditor’s Report to the members 69

GO VITA GROUP LIMITED ANNUAL REPORT 2021-2022 I 29

DIRECTORS’ REPORT

The Directors of Go Vita Group Limited present their report together with the financial statements of the Consolidated Entity, being Go Vita Group Limited and its controlled entities (the Group) for the year ended 30 June 2022.

Robert (Bob) Peterson Independent Director • Masters in Entrepreneurship & Innovation (Hons) • Director since 28 October 2020 • Associate Director since 16 October 2017 • Member of the Sustainability Committee Bob holds multiple roles as Non-Executive Director / Chair in the broader healthcare sector, across medical clinics, medical devices, pharmacy and many modalities in allied health services, and he is experienced in multiple other retail networks across different industries and sectors. Bob serves as Chair / Non-Executive Director on a number of other non-conflicting private companies.

Director details The following persons were Directors of Go Vita Group Limited during or since the end of the financial year. Patricia (Trish) Ridsdale Chair and Independent Director • Bachelor of Arts • Fellow of the Institute of Company Directors • Director since 28 October 2020

• Associate Director since 28 October 2019 • Member of the Audit & Risk Committee.

Trish has been a Company Director for the past 17 years on the Boards of co-operatives, public companies, private companies, statutory authorities and not for profits. She has been a Director Educator for the past 26 years with the Australian Institute of Company Directors (AICD) and is a Fellow of the AICD. She currently serves also on the Board of the Rapid Group Co-operative Ltd and runs a consultancy practice called Board Business which specialises in strategy facilitation, board performance reviews, risk management and executive coaching.

Clinton John Hayes Managing Director • DipFP GAICD • Director since 2015

Clinton has substantial experience in retailing. He has previously owned other retail businesses and was international Managing Director for an Australian company and was responsible for an overseas start-up. Clinton was also a licensed financial planner and mortgage broker. He has also previously worked in the banking and financial services industry. Clinton is a member of the Australian Institute of Company Directors and has recently graduated the Company Directors Course.

30 I GO VITA GROUP LIMITED ANNUAL REPORT 2021-2022

DIRECTORS’ REPORT

Simon Becher Member Director • Chair of Sustainability Committee • Simon has been a Member Director since 2017. • Member for 9 years. • Member stores are Go Vita Stanhope Gardens and Go Vita Windsor. Simon has held positions with GE Healthcare including the Service Operations Leader for the Asia Pacific region.

Alison Harris Member Director • Diploma of Management • Member of Sustainability Committee • Alison has been a Member Director since 2017. • Member for 9 years. Member stores are Go Vita Marion and Go Vita Colonnades. Alison has substantial expertise in health food retailing and member communications. Harilaos (Harry) Karabalis Member Director • Bachelor of Engineering (Hon.) / Bachelor of Commerce (Majoring in Finance) • Member of Audit & Risk Committee • Harry has been a Member Director since 2019. • Member for 6 years. • Member stores are Go Vita Woden and Go Vita Canberra City. Harry has experience working as a management consultant focusing on strategy and project management. Company Secretary Tim Penney is a qualified Chartered Accountant and has been employed by Go Vita Group Limited for twelve (12) years. Tim has been the company secretary for eight (8) years. Tim has previously held positions with several professional accounting firms and has a degree in Commerce (accounting and finance).

John Bylicki Member Director

• Dip of Financial Planning Qualified CFP • Securities Institute of Australia Financial Planning Certificate • UNSW Business School Marketing Financial Services Certificate • AII Associate Diploma • Chair of the Audit & Risk Committee • John has been a Member Director since 2017. • Member for 10 years. • Member stores are Go Vita Stanthorpe and Go Vita Warwick.

John has had an extensive career in banking, insurance and financial planning as a Board Director, senior manager and business owner. He is a current Director of the Complementary Medicines Australia Limited.

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