EQS-News / 20/06/2019 / 16:24 UTC+8
*Vitasoy Recorded Steady Growth in FY2018/2019 with
Revenue Increase in All Operating Entities*
*Hong Kong, 20th June, 2019* - Vitasoy International Holdings Limited (SEHK
Code: 00345) today reported a steady growth for its annual results ended
31st March 2019 ("FY2018/2019"), thanks to strong fundamentals and operating
efficiency improvements in its Mainland China business.
In FY2018/2019, Vitasoy's revenue grew by 16% to HK$7,526 million. Profit
attributable to equity shareholders achieved HK$696 million at 19% of
growth. Excluding the foreign currency impact, revenue and profit
attributable to shareholders increased further by 18% and 20% respectively.
As a result of improvements in manufacturing efficiency driven by high
volume and a trend in favourable commodity prices, especially sugar and
paper packaging, gross profit margin slightly increased to 54%. This
contributed an increase of 18% in gross profit which amounted to HK$4,042
million in FY2018/2019.
The Board of Directors recommends a final dividend of HK38 cents per
ordinary share. (FY2017/2018: final dividend of HK31.4 cents per ordinary).
Together with the interim dividend of HK3.8 cents per ordinary share
(FY2017/2018: an interim dividend of HK3.8 cents per ordinary share), the
total dividend for FY2018/2019 will be HK41.8 cents per ordinary share
(FY2017/2018 total dividend: HK35.2 cents per ordinary share).
Mr. Winston Yau-lai Lo, Executive Chairman of Vitasoy, said at a press
conference today, "The growth in FY2018/2019 has been, as expected, strong
yet relatively moderate in the second half of the fiscal year. Despite an
increasingly challenging and uncertain international economy, Vitasoy
continued to sustain a healthy financial position and strong business
growth. Mainland China continuously served as a growth engine, while
Australia and New Zealand received a good revenue growth. Hong Kong and
Singapore saw solid performance reaffirming our market leadership, while our
brand awareness in the Philippines has increased."
Mainland China delivered 25% and 33% growth in revenue and profit from
operations respectively with broad-based growth across portfolio, channels
and geographies. Profit growth outpaced revenue mainly due to favourable
business mix and high capacity utilisation.
Maintaining its dominant role in the market, Hong Kong sales grew by 5%,
with a minor decline in profit due to multiple-year investment programs in
production and logistics infrastructure. The low/no sugar portfolio saw a
strong sales momentum during the period.
Australia and New Zealand achieved revenue growth of 4% in the reporting
currency and a double-digit growth in the Australian Dollars. Singapore
continued growing its share in beverage sector and maintaining its leading
position in tofu category with a 7% increase in overall revenue.
The construction of the new production plant in Dongguan (Guangdong, China)
has commenced. The company also continued the multiple-year upgrade program
in Hong Kong and the yearly upgrade of manufacturing equipment in factories
to secure continuous growth and capacity, in order to build long term
fundamentals.
During the year, the company focused on pursuing sustainable growth in its
product portfolio, harnessing resources and managing environmental impact in
all markets. Vitasoy has reset its sustainability goals as majority of key
targets for FY2020/2021 have already been achieved. The information will be
detailed in this year's Sustainability Report to be released in July.
Looking ahead, Mr. Lo said, "Given the expected entries into our categories,
we are stepping up our investments in brand equity building, organisational
capability and infrastructure to secure the foundations for long-term
growth.
With the changing market landscape and higher demands of customers, the
company anticipates a more challenging and competitive environment ahead.
Vitasoy will continue to scale up business and expand market share without
compromising on our commitment to nutrition, taste and sustainability for
the development of business, environment and society."
*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 cares about the social responsibility 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) and included as a constituent of MSCI Hong Kong Index, Hang Seng
Stock Connect Hong Kong Index and Hang Seng Stock Connect Hong Kong Big Bay
Area Index and Hang Seng Corporate Sustainability Benchmark Index, among
others.
Vitasoy website: www.vitasoy.com [1]
/
For more information, please
contact:
Stella Lung Angela Hui / Carol Yeung
Senior Public Relations Manager Director / Manager
Vitasoy International Holdings Edelman
Limited
Tel: +852 2468 9644 Tel: +852 2837 4721 / 2837 4749
E-mail: E-mail: angela.hui@edelman.com /
publicrelations@vitasoy.com carol.yeung@edelman.com
*Summary*
*Financial Highlights*
*FY2018/19 *FY2017/18 *Change*
*Year ended 31st March* HK$ Mn* HK$ Mn*
Revenue 7,526 6,465 +16%
Gross Profit 4,042 3,420 +18%
EBITDA (Earnings Before Interest 1,228 1,063 +16%
Income, Finance Costs, Income
Tax, Depreciation, Amortisation
and Share of Losses of Joint
Venture)
Profit Before Taxation 956 803 +19%
Profit Attributable to Equity 696 586 +19%
Shareholders of the Company
Basic Earnings per Share (HK 65.6 55.5 +18%
cents)
Final dividend per share (HK 38 31.4 +21%
cents)
*Business Review*
*Mainland China -
Consistent strategy and disciplined execution deliver strong growth*
Vitasoy China achieved another year of strong growth in FY2018/2019. The
company recorded 25% increase in revenue to HK$4,628 million and 33% growth
in profit from operations to HK$720 million comparing with a high base last
year. The strong performance was a result of favourable raw material prices
and increased growth in established markets supported by high production
capacity utilisation. The depreciation of the RMB, however, has lowered the
growth in the market when reporting in Hong Kong dollar term.
To enhance its brand awareness and equity credentials as expanding, the
company has increased investment in advertising on both VITASOY and VITA
brands in view of the increasingly competitive market to secure long-term
success.
The company has also gradually expanding the business across Mainland China
by increasing presence and acceleration from e-commerce.
Looking forward, Mainland China will continue to grow ahead of the market,
leveraging execution, expansion and innovation on both brands VITASOY and
VITA. More investments to secure brand equity building, infrastructure
readiness and innovation for the future are expected.
*Hong Kong, Macau and Exports -
Increased investment to prepare for new phase of growth*
In Hong Kong, Vitasoy delivered a strong revenue growth of 5% despite the
very mature development of its brands. Both brands VITASOY and VITA grew in
revenue, together with health focused innovation, particularly the low/no
sugar product ranges under both VITASOY and VITA.
Profit from operations decreased by 4% because of the announced programme of
infrastructure upgrade and new organisational capabilities.
Vitasoy Hong Kong will continue to drive solid growth of its core and
additional acceleration in innovation. The company believes that the
multiple-year infrastructure investment program will prepare Hong Kong for
its next phase of profitable growth.
*Australia and New Zealand *-
*Accelerated business growth and penetration*
The company's Australian and New Zealand business grew by 10% in revenue
with profit from operation at 4% in Australian dollars but contracted in
reporting dollar due to the local currency depreciation. The business
momentum was mainly driven by increased penetration of core offering, as
well as new products launch and stronger on-premise performance.
In the future, the company expects continued growth in this market primarily
obtained through innovation and execution, as consumers express increasing
interest in health-conscious choices.
*Singapore -
Emerging import beverage business *
Vitasoy Singapore recorded a 7% increase in revenue. The company registered
double-digit growth in imported beverage business when comparing to the
previous year, while maintaining its market leadership in tofu business.
The operating profit declined significantly due to a substantial investment
in brand equity and organisational capabilities which is consistent with our
strategy to scale up the operation in the region.
In the year ahead, the company will continue its strategy of leading the
tofu market whilst driving more investments in beverages to accelerate the
scaling up of the operation.
*The Philippines -
Awareness further increased *
The joint venture with Universal Robina Corporation in the Philippines
continues to gradually increase the awareness and trial of VITASOY products
for the long-term development of Vitasoy's portfolio.
The business is expected to continue its gradual and moderate growth,
developing the understanding about plant-based nutrition in the market, and
capitalising on the vast distribution network of the local joint venture
partner.
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Document title: Vitasoy Recorded Steady Growth in FY2018/2019 with Revenue
Increase in All Operating Entities
20/06/2019 Dissemination of a Marketing Press Release, transmitted by EQS
Group.
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(END) Dow Jones Newswires
June 20, 2019 04:24 ET (08:24 GMT)
