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.
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Business Review 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 - 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. 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 -
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