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
I GO VITA GROUP LIMITED ANNUAL REPORT 2021-2022 18
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