Soyamilk maker Vitasoy International Holdings is sticking to its target of turning around its United States business by 2007 after a $24.78 million restructuring last year.
While Hong Kong remains the group's biggest market, accounting for 65 per cent of last year's $2.38 billion revenue, North America was its biggest export market. However, it was also the company's only unprofitable market, recording a $37 million loss from revenue of $467.5 million.
'The restructuring of the operations has been completed and we will continue to trim losses until we achieve breakeven on the business by the 2006-07 fiscal year,' executive director John Lau said.
Vitasoy's update on its US operations came as the company reported yesterday that net profit for the year to March rose 6.66 per cent to $123.75 million from $116.03 million a year earlier.
The company incurred the US restructuring costs as it exited its refrigerated soyamilk business, closed manufacturing plants and replaced management positions. The US unit was founded in 1979.
In the home market, which Vitasoy entered in the 1970s, the company has diversified into other non-alcoholic beverages such as juices, water and milk, and supplied lunch boxes to Hong Kong schools. Sales in Hong Kong rose 7 per cent to $1.55 billion last year.
