Vitura Health (ex. Cronos Australia) has 2 businesses :- selling...

Vitura Health (ex. Cronos Australia) has 2 businesses :
- selling products, mainly related to medicinal cannabis,
- telehealth company (ex.Doctor on Demand).

Listening to their recent AGM, it is clear that the company has been through a lot of turmoil during the last couple of years.
FY 24 results showed a significant decrease of their earnings (despite + 6 % for revenues*, there was a 70 % decrease of their EBITDA).

Obviously, they are on 2 tough businesses :
- strong competition for medicinal cannabis, illustrated by - 6 % for products revenues in FY 24 despite + 7 % for volumes,
- telehealth business looks also tough, based on companies specialised in this business.

What's interesting in VIT case is that the company has totally reset the strategy in May 24.
The company seems to see the first results as Q1 25 results were in line with their FY 25 guidance :
. + 10 % organic growth for revenues,
. EBITDA margin of at least 8 % vs 5 % in FY 24.

If the company reaches its target for FY 25, they could have a cash flow from operation similar to FY 24 (which benefited from a large contribution of working capital) and generate a free cash flow around 6 m$.
It corresponds to a free cash flow yield of 9.2 %, interesting if the company is able to maintain some organic growth.

Also good to see that they just did an interesting acquisition (Candor Medical) that they bought for only 5.9 m$, while it did 1 m$+ of EBITDA in FY 24 and "much more than 1 m$ of EBITDA" for H1 25.
This acquisition was not included in their previous guidance for FY 25.
It seems to increase their EBITDA 25 /share, as it increases their expected EBITDA by around 20 %, while it was financed via a capital increase to Peregrine (increasing the number of shares by 13 %).


* probably negative organic growth after taking account the fact that they acquired Doctors on Demand in Oct 23