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EQS-News / 21/11/2018 / 16:32 UTC+8
For Immediate Release
*Vitasoy Sustained Strong Growth Momentum in 1H FY2018/2019 *
*Hong Kong, 21st November 2018* - Vitasoy International Holdings Limited
(SEHK Code: 00345) today announced its interim results ended 30th September
2018 showing a broad-based sales growth across its operating markets.
In the first six months of the Fiscal Year 2018/2019, the company achieved
year-on-year growth of 22% in revenue and 30% in profit attributable to
equity shareholders. Gross profit increased by 25% to HK$2,408 million,
driven by higher sales. Vitasoy's gross profit margin improved to 54%,
showing greater manufacturing efficiency, contributed by higher sales
volume, and a favourable trend of commodity prices, particularly sugar and
milk powder.
Basic earnings per ordinary share were HK48.9 cents, an improvement of 30%
compared to last interim period. The Board of Directors recommends an
interim dividend of HK3.8 cents per ordinary share (1H FY2017/2018: interim
dividend of HK3.8 cents per ordinary share).
Mr. Winston Yau-lai Lo, Executive Chairman of Vitasoy, said at the press
conference today, "The broad-based growth in the first half of the Fiscal
Year has surpassed our internal growth target. Mainland China was the
fastest growing market and further enhanced its position as the company's
largest segment. Our operations in Hong Kong, Australia and Singapore also
reported growth in revenue, both in reporting and local currencies. Our
local joint venture business in the Philippines continued to grow by
gradually building the local soy category."
Driven by its "Go Deep Go Wide" strategy, Vitasoy Mainland China sustained
its growth momentum with an increase of 33% and 42% in revenue and profit
respectively in the first six months of this Fiscal Year. Vitasoy's new
plant in Dongguan broke ground on 30th October 2018 and production is
expected to commence in 2021.
Vitasoy Hong Kong recorded promising growth while having made increased
investments in manufacturing and logistic infrastructure. Revenue and profit
increased by 4% and 5% respectively with a growth across its portfolio of
products and main channels. Vitasoy's Australia and New Zealand business
reported a 9% growth in revenue in local currency, supported by improved
execution and product innovation. Vitasoy Singapore maintained its
leadership position in the local tofu market, and continued to accelerate
its imported beverage business.
"For the second half of the Fiscal Year, we expect our business to continue
to be strong yet growing at a more moderate pace. Looking forward, we will
stay focused on our sustainable growth strategy and make necessary
investments to secure our solid market positions where we compete,"
concluded Mr. Lo.
*About Vitasoy *
Vitasoy International Holdings Limited is a leading manufacturer and
distributor of plant-based food and beverages. Established in 1940 by the
late 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 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 ended 30th *1HFY2018/19 *1HFY2017/18 *Change*
September * HK$ Mn* HK$ Mn*
Revenue 4,448 3,646 +22%
Gross Profit 2,408 1,922 +25%
EBITDA 831 688 +21%
Profit before taxation 703 557 +26%
Profit Attributable to Equity 518 397 +30%
Shareholders of the Company
Basic Earnings per Share (HK 48.9 37.7 +30%
cents)
Interim dividend per share HK3.8 HK3.8 --------
(HK cents)
*Business Review*
*Mainland China -
Sustained high growth momentum in revenue and improving profitability *
Under the "Go Deep Go Wide" strategy, Vitasoy Mainland China continued to
report growth in both revenue and profit, fuelled by growth in sales volume,
favourable material costs and currency as well as improved manufacturing
efficiency. The Mainland China operation reported a 33% increase in revenue
to HK$2,992 million and 42% increase in profit to HK$565 million.
Both VITASOY and VITA brands performed strongly, reflecting customers'
increased preference for high quality, taste and sustainable products. The
premium high nutrition range, VITASOY Health Plus, was relaunched in the
market targeting health-conscious consumers. E-commerce operations continued
to grow and play an integral role in promoting Vitasoy brands across the
country.
The company has commenced the construction of its new Dongguan manufacturing
plant after the ground breaking ceremony on 30th October, 2018. Upon
completion in 2021, it will be Vitasoy's largest production base in Mainland
China.
Vitasoy Mainland China will continue to proactively address the intensified
competitive environment with its increased investment in building brand
equity and enhanced marketing efforts in product trials and promotions.
*Hong Kong, Macau and Exports *-
*Accelerating growth behind increased investments *
Vitasoy Hong Kong delivered a broad based growth across all product lines
and main channels and reported an increase of 4% in revenue to HK$1,138
million and growth of 5% in profit to HK$194 million. E-commerce saw
particularly strong growth from its small base.
The new VITASOY brand equity campaign with focus on the health benefits of
soy consumption, launch of SAN SUI No Sugar Soya Milk and continued
investment in CALCI-PLUS enhanced the overall growth while strengthening
VITASOY's market leadership in Hong Kong's soya milk category. In the VITA
tea category, a new variant Dong Ding Oolong Tea was introduced in the No
Sugar Tea range and received positive customer response.
Vitasoy Hong Kong will focus on its core products and developing tailored
innovations in communication and product range. The 2-year upgrade programme
to increase manufacturing capacity and logistic infrastructure has been
progressing smoothly, creating stronger fundamentals for future growth.
*Australia and New Zealand *-
*Accelerating growth in a rapidly evolving plant milk market *
Driven by the growth in the plant milk category and expanded VITASOY
portfolio in major supermarkets, Vitasoy Australia achieved a 5% increase in
revenue to HK$263 million. Excluding the impact of the depreciation of the
Australian Dollar, revenue growth in local currency was 9%. The profit
contracted by 8% to HK$45 million as the operation invested in new
production line to support future innovation.
In the first half of this Fiscal Year, Vitasoy Australia has been driving
its VITASOY Soya Milk Protein Plus and Almond variant products, while
maintaining price and promotion competitiveness. As the market keeps
evolving ever more rapidly, the operation will continue to invest in product
innovation, which will be an important growth driver for the rest of the
Fiscal Year and going forward.
*Singapore -
Continued leadership in tofu with growing imported beverage sales*
Vitasoy Singapore recorded a 9% increase in revenue to HK$54.7 million and
secured market leadership in its core tofu business. Their imported beverage
business reported an accelerated growth. The operation recorded a profit of
HK$0.9 million as it continued to scale up its business with increased
investment in advertising and organizational capability. For the second half
of the Fiscal Year, it will continue to grow both its core tofu business and
imported beverage portfolio to accelerate the scaling up of the operation.
*The Philippines -
Local JV focused on building higher brand awareness*
The joint-venture business continued to increase public awareness of VITASOY
platform and its health benefits, drive product trials and adoption across
both on-the-go and home consumption occasions. The local team will focus on
building business scale through continuing to bring new product users to the
brand and gradually expanding the soya milk category in the Philippines.
*###*
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(END) Dow Jones Newswires
November 21, 2018 03:33 ET (08:33 GMT)
