Vitabiotics: Profit cut ahead of of potential £1bn sale
Profit at Vitabiotics, the pharmaceutical giant owned by former Dragons’ Den star Tej Lalvani, has been cut ahead of a potential £1bn sale.
Reports emerged towards the start of 2025 that the London-headquartered business had revived plans to sell itself in a move which valued it at £1bn.
At the start of December it was also reported that Indian pharmaceutical giant Lupin Pharma was in early-stage discussions to acquire Vitabiotics alongside EQT Partners and TPG Capital.
Vitamins giant Vitabiotics is run by former Dragons’ Den star Tej Lalvani and was founded by his father, Kartar Lalvani, in 1971.
Tej Lalvani appeared on Dragons’ Den from 2017 to 2021.
Now, new accounts filed with Companies House have revealed that Vitabiotics’ pre-tax profit was cut from £55.2m to £28.4m in 2024.
The results, which have been filed late, also show its turnover dipped from £196.4m to £195.6m over the same period.
Unlike the prior year, Vitabiotics did not issue a dividend – having paid out £15m in its previous 12 months.
Inflation eats into Vitabiotics’ bottom line
A statement signed off by the board said: “The company’s overall net saes figure of £195.6m reflects positive continued growth across all sales channels, with the exception of a modest reduction in export sales in 2024, due to specific local market conditions.”
It added: “Inflationary increases in cost of goods and transportation costs flowed through to operating profit for the year.
“In addition, there was an increase in administrative expenses and a £15m revaluation adjustment related to investment properties.”
Vitabiotics also said that there was also a £5m bad debt provision created for amounts owed by Vitabiotics Turkey.
On its future, Tej Lalvani’s company said: “The focus on developing our brands internationally will continue with initiatives such as a regional marketing hub based in Egypt to serve the MENA region and strengthening of the supply chain and export functions to provide even better service to our international partners.”