Ann: FY17 Results Announcement, page-11

A quick comparison vs.pcp.
2H17 NPAT $17.5m   
2H16 NPAT $19.7m - Underlying

This shows the effect of the first of the remuneration changes, NPAT fell 11% in 2H2017.

It is worth comparing Gross Profit and NPAT between 1H2017 and 2H2017 to see the sensitivity of NPAT when gross profit falls.

By my reasoning we saw Gross Profit fall $13m in 2H2017 compared to 1H2017, and NPAT fall about $3.9m.
ie. NPAT fell about $1 for every $3 drop in Gross Profit.

On this basis, if we project out the $17m fall in Gross Profit in FY2018 due to further remuneration reductions, we could see NPAT fall $5-6m over the full year. all other things being equal. ie. Perhaps a FY18 NPAT of $30m.

However, a look at the notes to the accounts shows that that the 8 stores picked up in FY2017 would have contributed an extra $3.2m EBITDA if owned for the full 12 months. Additionally, we could see up to 5 more new stores in FY2018 contribute to earnings. Plus, we have the cost saving initiatives from combining the business and enterprise divisions. All in all, I'd be surprised if profitability went backwards much at all in FY2018.

But then again, we do remain at the mercy of Telstra, whom we know to be a poorly managed company at the best of times and capable of making dumb decisions impacting Vita.