Dow Jones received a payment from EQS/DGAP to publish this press release.
EQS-News / 28/11/2017 / 16:30 UTC+8
For Immediate Release
*Vitasoy Maintained a Sustainable Growth in 1H FY2017/2018*
*Hong Kong, 28th November 2017* - Vitasoy International Holdings Limited
(SEHK Code: 00345) today reported a sustainable growth for its interim
results ended 30th September 2017 ("FY2017/2018 interim"), with all
operating entities registered positive sales increase.
In the FY2017/2018 interim, Vitasoy recorded an increase of 21% in revenue
to HK$3,646 million, while profit attributable to equity shareholders of the
company registered a decrease of 14% to HK$397 million. The drop in net
profit was mainly resulted from a higher base in the previous year caused by
a non-recurring gain from the divestiture of the North American Mainstream
and SAN SUI business (the "North American divestiture").
Excluding the impact of the North American divestiture, the company reported
23% growth in revenue and 12% increase in profit attributable to equity
shareholders. The increment in profit attributable to shareholders was
attributed by the increased gross profit, enhanced operational efficiency,
partially offset by rise in operating expense.
Driven by strong sales performance, the gross profit increased 19% to
HK$1,922 million. The gross profit margin maintained at 53%.
Basic earnings per ordinary share were HK37.7 cents, dropped by 14%. The
Board of Directors recommends an interim dividend of HK3.8 cents per
ordinary share (FY2016/2017 interim dividend: HK3.8 cents per ordinary
share)_._
Mr. Winston Yau-lai Lo, Executive Chairman of Vitasoy, said, "Mainland China
was the key growth driver for the interim performance, complemented by a
moderate sales increase in Hong Kong and a steady growth in Australia and
Singapore. The joint venture in the Philippines between Vitasoy and
Universal Robina Corporation has started its operation smoothly with initial
shipments to local customers."
During the interim period, Vitasoy China continued its "Go Deep Go Wide"
strategy and delivered a robust growth of 39% in revenue. An encouraging
growth was reported in both established and new markets with enhanced market
presence for VITASOY and VITA brands.
Vitasoy Hong Kong recorded a revenue decrease of 2% as the revenue from the
North American divestiture was included in the previous interim period.
Excluding this, the operation recorded 3% sales growth after re-clustering
the post-divestiture imported beverage business of North America under its
segment.
The Australia/New Zealand business reported 6% growth in revenue and
maintained its leading position in the local plant milk market through
product innovation like VITASOY Almond Milk. Vitasoy Singapore's business
grew 6% in overall revenue as imported beverages registered strong growth.
The joint venture business in the Philippines has started to market Vitasoy
products and launch communications programmes to increase brand awareness
and product trials.
"For the second half of FY2017/2018, we expect to maintain a sustainable
growth albeit at a more moderate level. While Mainland China will continue
to scale up, we will invest in other markets to strengthen brand equities
and execution as it is critical to secure our sustainable growth in the
future," said Mr. Lo.
*About Vitasoy *
Vitasoy International Holdings Limited is a leading manufacturer and
distributor of plant-based food and beverages. Established in 1940 by Dr.
Kwee-seong Lo in Hong Kong, the company strives to promote sustainable
nutrition through provision of a variety of high-quality products with
Nutrition, Taste and Sustainability as the guidelines for its portfolio
offerings. Vitasoy integrates social responsibility into its business and
contributes to the communities that the company serves. Currently, Vitasoy
has manufacturing operations in Hong Kong, Mainland China, Australia and
Singapore. Its products are available in about 40 markets worldwide. Vitasoy
is listed on the main board of the Hong Kong Stock Exchange (00345.HK).
Vitasoy website: www.vitasoy.com [1]
For more information, please
contact:
Stella Lung Angela Hui
Senior Public Relations Manager Associate Director
Vitasoy International Holdings Edelman
Limited
Tel: +852 2468 9644 Tel: +852 2837 4721
E-mail: publicrelations@vitasoy.com E-mail:
angela.hui@edelman.com
*Summary*
*Financial Highlights*
*Six months ending 30th *FY2017/18 *FY2016/17 *Change*
September* HK$ Mn* HK$ Mn*
Revenue 3,646 3,013 +21%
Revenue (excluding the impact of 3,646 2,967 +23%
North American divestiture)
Gross profit 1,922 1,611 +19%
Gross profit 1,922 1,601 +20%
(excluding the impact of North
American divestiture)
EBITDA 688 765 -10%
(Earnings before interest income,
finance costs, income tax,
depreciation, amortisation and
share of losses of joint venture)
EBITDA 688 575 +20%
(before the net gain on the North
American divestiture)
Profit before taxation 557 648 -14%
Profit attributable to equity 397 460 -14%
shareholders of the Company
Profit attributable to equity 397 355 +12%
shareholders of the Company
(before the net gain on the North
American divestiture)
Basic earnings per ordinary share 37.7 43.8 -14%
(HK cents)
Basic earnings per ordinary share 37.7 33.8 +12%
(HK cents)
(before the net gain on the North
American divestiture)
Interim dividend per share (HK 3.8 3.8 -
cents)
*Business Review*
*Mainland China -
"Go Deep Go Wide" strategy keeps delivering sustainable growth*
Vitasoy China achieved a strong growth of 39% in revenue to HK$2,252 million
and 41% in operating profit to HK$398 million.
The growth was broad based across traditional strongholds like Southern
China and also new markets where the company has been expanding. During the
interim period, Vitasoy achieved a consistent performance in the retail
segments, including accelerated development in e-commerce channels.
While VITASOY remains the core focus, the VITA brand has achieved an
encouraging response behind its summer activation.
After the first full year of smooth operation of its new Wuhan plant,
Vitasoy planned to relocate the Shenzhen Production Plant to a larger and
more efficient new factory in Changping Town, Dongguan City, Guangdong
Province to ensure an adequate production capacity for the company's future
expansion. The new facility is expected to commence in 2021.
Looking ahead, Vitasoy China will continue to be the key driver for the
company's growth. It will continue the "Go Deep Go Wide" strategy, staying
focused on improving the execution of its equities and in-store
fundamentals.
*Hong Kong, Macau and Exports -
Investing for future growth *
Driven by growth in core business, Vitasoy Hong Kong recorded a steady sales
increase. Revenue decreased by 2% to HK$1,094 million as the revenue from
the North American divestiture business was included in the previous interim
period. The operating profit dropped 3% to HK$184 million due to an
increased investment in brand equity. Excluding the North American
divestiture, Vitasoy Hong Kong registered 3% growth in revenue and 4% drop
in operating profit.
The business growth of Vitasoy Hong Kong was mainly driven by its
innovation. During the first half of FY2017/2018, the company launched a new
plant milk product range under VITASOY CALCI-PLUS, including Hi-Calcium
Almond Milk and Hi-Calcium Coconut Milk and the upgraded Plant Sterol Soya
Milk, which fulfilled ever-increasing consumers' interest in premium,
healthy and sustainable products.
Vitasoy Hong Kong also increased its investment in sales and marketing
activities, expanded in-store presence and drove consumer penetration and
trials.
Vitasoy Hong Kong will increase its focus on the core equities of VITASOY
and VITA and leverage the successful innovation to enhance its brands to be
featured in more consumption occasions and channels. The operation will
continue to increase investment in marketing and promotions, as well as in
improving manufacturing and logistical infrastructure.
*Australia and New Zealand *-
*Maintaining market leadership position in plant milk segment*
The Australia and New Zealand operation continued to maintain its number 1
leadership position in plant milk market and recorded steady sales increase
of 6% to HK$251 million. Operating profit dropped by 2% to HK$49 million
behind increased investments in brand building to drive business growth.
As consumers in local markets have become more health conscious and
appreciate the benefits of plant milk, Vitasoy expects solid growth in the
category to continue during the second half of the fiscal year. The
operation will focus on both core Soy as well as Almond and other plant milk
products which will help gain a stronger market share.
*Singapore -
Improving sales of VITASOY tofu and imported beverages*
Vitasoy Singapore delivered a 6% increase in revenue to HK$50 million, while
the operating profit decreased by 17% to HK$4 million, mainly due to an
increased investment behind the VITASOY tofu and imported beverages.
Despite the tofu market has become more competitive, Vitasoy Singapore
maintained its market leadership.
Looking ahead, the company expects to maintain its market leadership
position by introducing innovative products in both tofu and imported
beverages to continue scaling up this operation.
*The Philippines -
Smooth collaboration with local JV partner *
In the second half of FY2017/2018, Vitasoy's joint venture business in the
(MORE TO FOLLOW) Dow Jones Newswires
November 28, 2017 03:31 ET (08:31 GMT)
