Vitasoy Announces Business Results for 1H FY2024/2025

Financial Highlights 

6 months ended

30 September 2024

1H
FY2024/25

HK$ Mn

1H
FY2023/24

HK$ Mn

Change

Change â€“
Net of
currency
impact

Revenue

3,443

3,391

+2 %

+2 %

Gross Profit

1,777

1,712

+4 %

+4 %

Gross Profit Margin

51.6 %

50.5 %

+1.1 ppt

+1.2 ppt

Profit from Operations

257

171

+50 %

+52 %

Profit after taxation

176

166

+6 %

+6 %

Profit Attributable to Equity
Shareholders of the Company

171

163

+5 %

+5 %

EBITDA

496

422

+18 %

+18 %

Earnings per Share (HK cents)

15.9

15.2

+5 %

+5 %

Interim Dividend per Share (HK
cents)

4.0

1.4

186 %

N/A

HONG KONG, Nov. 26, 2024 /PRNewswire/ -- Vitasoy International Holdings Limited ("Vitasoy" or the "Company", together with its subsidiaries, the "Group", Stock Code: 00345) today announced its interim results ended 30 September 2024 ("the period"). 

During the six months ended 30 September 2024, the Group delivered revenue growth of 2%. The Group's gross profit margin rose to 51.6% in Hong Kong Dollar terms, mainly due to lower commodity prices and production optimisation gains. Profit from operations grew strongly by 50%. The primary contributors were Mainland China and the Hong Kong Operation. 

Mr. Winston Yau-lai Lo, Executive Chairman of Vitasoy International Holdings Limited, said at the press conference today, "During the interim period, the Group delivered sales growth whilst continuing our strong improvement in operating profit margin. Looking ahead, we are confident in our long-term potential within our exciting product categories. We will work to sustain sales growth and continue to drive operational efficiencies."

The Board of Directors intends to rebalance the full year dividends payment, while maintaining a stable annual payout ratio, subject to the availability of cash resources. Based on the Group's financial performance, and having regard to the Group's cash position, the Board of Directors has declared an interim dividend of HK4.0 cents per ordinary share for the interim period (FY2023/2024 interim: HK1.4 cents per ordinary share).

Mainland China –

Stable sales following optimisation of online/offline sales mix and production optimisation gains leading to a strong increase of 15% in profit from operations, in Hong Kong Dollar terms, and an operating margin of 11%

In Mainland China, overall sales remained stable as compared with the previous interim period. Revenue across regions grew as a result of improved sales execution and product innovation but was offset by erosion in the online business, where Vitasoy prioritised a balance between its equity and sales building activities against profitability.

During the interim period, Vitasoy has gradually improved commercialisation and sales execution, resulting in higher sales per store, distribution gains and stronger performance in its innovative product range. Among Vitasoy's target shoppers, the introduction of VITASOY Banana and VITASOY Strawberry variants generated interest and sales, while its innovative VITA VLT Zero and VLT Sparkling Zero offerings delivered the distinctive essence of its VLT range without added sugar, catering to the evolving preferences of shoppers.

Mainland China's profit from operations grew 16% in local currency terms, representing a 11% operating profit margin, primarily driven by improved manufacturing efficiency and continued disciplined cost control.

Hong Kong Operation (Hong Kong SAR^[1], Macau SAR^[2] and Exports) –

Profit from operations growing substantially by 44%, due to sustained revenue growth and lower commodity prices

Despite a challenging retail environment, the Hong Kong Operation continued to grow sales at 3%, behind a strong core business and high shopper acceptance of the Company's innovative VITASOY Banana, VITASOY Strawberry, VITA VLT Zero and VLT Sparkling Zero products.

Vitaland's school and export businesses also registered revenue growth as school attendance normalised and demand strengthened in overseas markets, respectively.

Profit from operations grew significantly by 44%, due to sustained revenue growth and lower commodity prices.

Australia and New Zealand –

A rebound in revenue growth, and enhanced market positioning following the re-establishment of sustainable production platform

Revenue from Australia and New Zealand increased by 6% in local currency, reflecting strong market demand for Vitasoy's brands. Vitasoy sustained its leadership in the Soy and Oat milk segments in grocery and delivered incremental growth in the chilled plant milk and yoghurt segments.

An operating loss of HK$46 million for the interim period was the result of manufacturing issues, which have now been fully resolved, as well as higher logistics and overhead costs.

Singapore –

The tofu business recorded an increase in revenue; operating losses reduced 

Revenue from Singapore increased by 5% in local currency, with strong export performance in the tofu business. This was partially offset by a beverage sales inventory adjustment as Vitasoy switched to a new distributor. Stronger revenue growth coupled with stringent operating cost controls helped to reduce the operating loss substantially by 78% to SGD0.4 million. 

The Philippines –

The joint venture with Universal Robina Corporation in the Philippines will maintain its growth trajectory in the single-serve and multi-serve segments. Vitasoy will also continue to raise awareness and stimulate trial of its plant-based beverages, particularly its newly launched Almond and Oat variants, to increase growth and market share in this high potential market.  

General Outlook

In the second half of the financial year, the Group's goal will be to sustain revenue growth and maintain profitability after the summer peak season. Vitasoy will continue to drive improved performance in execution, expansion and innovation, while continuing to manage costs and operational efficiencies in a disciplined manner.

Given the strong fundamentals of Vitasoy's business model, the Group remains confident in the long-term potential of its portfolio across the markets in which the Group operates.

For more details, please refer to the following documents:

Note:
^[1] "Hong Kong SAR" stands for the Hong Kong Special Administrative Region of the People's Republic of China.

^[2] "Macau SAR" stands for the Macao Special Administrative Region of the People's Republic of China.

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 China, the Company strives to promote sustainable plant-based nutrition through provision of a variety of high-quality products with Nutrition, Taste and Sustainability as the guidelines for its portfolio offerings. Currently, Vitasoy has operations in China, including Mainland China and Hong Kong Special Administrative Region, Australia, Singapore and the Philippines. 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 Morgan Stanley Capital International (MSCI) Hong Kong Small Cap Index, and Hang Seng Corporate Sustainability Benchmark Index, among others.      

Vitasoy website: www.vitasoy.com

For more information, please contact:

Sarah Tsang / Phoebe Li

Winnie Lam / Gary Lai

Communications Department

Senior Executive / Associate Director

Vitasoy International Holdings Limited

Edelman Public Relations Worldwide (HK) Limited

Tel: +852 2468 9644

Tel: +852 2837 4727 / +852 2837 4793

E-mail: publicrelations@vitasoy.com

E-mail: winnie.lam@edelman.com /

gary.lai@edelman.com

** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **

Vitasoy Announces Business Results for 1H FY2024/2025

Vitasoy Announces Business Results for 1H FY2024/2025

Outdoor advertising is considered an effective media to reach customers and enhance brand awareness for international businesses that are planning to invest in Vietnam.

HO CHI MINH CITY, Vietnam, Nov. 26, 2024 /PRNewswire/ -- Sixth Sense Media Joint Stock Company aims to reach and attract more international investors to Vietnam in 2025. Sixth Sense Media is currently providing comprehensive outdoor advertising services on many different channels such as billboards, advertising on means of transport, advertising roadshows, and organizing activations.

With more than 15 years of experience, Sixth Sense Media is honored to be trusted by many international brands, such as Double-A, Calvin Klein, Uniqlo, EvaAir, Air Asia, KBank, K-Food, and many more. Sixth Sense Media is confident that it will become a reliable partner, effectively supporting international brands in their firmly entering the Vietnamese market.

Outdoor advertising trends of international businesses in Vietnam

The investment trend of foreign enterprises in Vietnam has shown positive signs. In the first 8 months of 2024 alone, 94 countries invested in the Vietnamese market. The top 5 countries and regions with the largest investment capital were Singapore, Hong Kong, Japan, mainland China, and South Korea. Besides large enterprises, many small and medium-sized international brands have also realized the great potential of the Vietnamese market.

The increasing amount of investment capital and the increasing number of businesses coming to Vietnam have become driving catalysts for the domestic advertising industry. Among these, outdoor advertising is recorded to have notable growth and has become a preferred choice for many companies.

Mr. Trung Anh Nguyen, Director of Sixth Sense Media - A leading outdoor advertising company, shared: "In the past 3 years, the number of advertising projects for foreign brands has increased significantly. International investors all agree that outdoor advertising is an easy-to-access communication channel to the public without any limitations, an impressive way to "launch" and attract great attention."

Also according to research by Sixth Sense Media, the outdoor advertising services most preferred by international brands include digital advertising screens, traditional outdoor billboards, advertising on means of transport such as buses, taxis, and advertising roadshows. In addition, advertising channels in supermarkets, shopping malls, and airports are also effective forms of advertising for businesses with a large and diverse audience that brand potential customers.

Opportunities and challenges for outdoor advertising companies in Vietnam

The influx of foreign brands into Vietnam presents both potential and significant challenges that outdoor advertising companies in Vietnam need to know.

The potential here is the promotion and strong growth in sales. Because most outdoor advertising projects funded by foreign investors often come with substantial budgets, involve multi-channel campaigns, and feature streamlined payment processes. In addition, collaborating with international brands is also a way for outdoor advertising companies to enhance their position and demonstrate their capabilities. 

International brands coming to Vietnam offer both an opportunity and many challenges. In Vietnam, the outdoor advertising industry, in particular, and advertising in general are still quite young compared to developed countries. Therefore, many domestic enterprises will find it quite difficult to face strict requirements or standards on service quality and require high creativity in advertising.

But on the positive side, this is also the momentum that promotes the development of the entire industry. Specifically, after working with many international brands, Sixth Sense Media has built a professional working process and quickly grasped and planned appropriate implementation for each industry.

For further insights, please visit:

Media Contact:

** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **

Sixth Sense Media Expanding Beyond Domestic Borders