JSE-listed Go Life International’s revenue rose by 66.3% year-on-year to $572 287, compared with revenue of $343 730 earned in the quarter ended May 31, 2017.
This significant growth, the company said on Wednesday, is attributed to various new sales channels, as well having expanded the Go Life Health Hubs to major retail centres across the country.
This expansion and marketing strategy has, however, also led to higher operating costs, with an increase from the prior period of around 107%, which led to a reduction in operating margin from 43.7% in the previous period to 29.8% for the first quarter of the current year.
These efforts are, nevertheless, expected to deliver long-term benefits for the group.
Profit from operations increased by 13.6% to $170 752 for the quarter under review, from $150 207 in the prior comparable period, while income from associates, derived from the associate interest in Bon Health frail care operations, increased by 4%.
Meanwhile, finance costs arose primarily from the interest on shareholder and other loans and increased by 19.3% owing to third-party funding being secured to settle the vendor obligations owing for the Gotha acquisition.
Profit before and after taxation increased by 5.4% year-on-year.
Additionally, earlier this year, South African broad-based black economic empowered (BBBEE) company Caligraph acquired 26% of Go Life International’s shares.
Caligraph intends to work with Go Life management to provide its health products with the appropriate BBBEE credentials.
Commenting on the future, Go Life International on Wednesday stated that it is in the process of inaugurating its alternative and complementary products to all regions of South Africa, with sales initially focussed in the Eastern Cape province.
Through extending its product offering to more populous areas, the company expects a significant escalation in sales.
In addition to expanding its retail capacity, the company intends to offer its products and services to health hubs, community clinics, pharmacies and hospitals.
The rationale underlying this approach is not to become the owner of brick and mortar, but rather to partner with investors and prominent role players in those sectors, Go Life said.
Additionally, to further enhance its offerings, the company is pursuing a strategy aimed at acquiring businesses or, where merited, securing relationships with strategically aligned entities.
By implementing this strategy, the company aims to expand its product range and service offerings and, where merited, retain the expertise and knowledge of the founder members of those businesses, by absorbing them into its structures.
Pursuant to the Go Life drive into medical technology that would physically aid the curing of dread diseases, stem cell technology remains high on the company’s priority list. To this end, Go Life is evaluating various options to ensure its participation in this technology.