Vitasoy recorded steady growth in all operating entities

Vitasoy International Holdings reported a steady growth for its annual results ended 31st March 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. The company said the profit was attributable to equity shareholders which 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, the company revealed.

Image from company website

Winston Yau-lai Lo, executive chairman of Vitasoy, said: "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.”

He added: “Hong Kong and Singapore saw solid performance reaffirming our market leadership, while our brand awareness in the Philippines has increased."

Vitasoy also cited the improvements in manufacturing efficiency driven by high volume and a trend in favourable commodity prices, especially sugar and paper packaging, as source of gross profit margin that slightly increased at 54%. This contributed an increase of 18% in gross profit which amounted to HK$4.042 million in FY2018/2019, the company 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,” said Lo.

“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,” he concluded.