Iconic Hong Kong drinks maker Vitasoy sees profits fall 10 per cent in crisis-hit city
- The 79-year old company posted a 9.8 per cent drop in net profit in its home market, which has been ravaged by protests, but overall profit was up 3 per cent
- It is regarded as a quintessential Hong Kong brand, whose products are part of the city’s cultural fabric
Iconic Hong Kong drinks manufacturer Vitasoy International saw its profit in the crisis-hit city fall almost 10 per cent in the six months to the end of September.
The 79-year old company posted a 9.8 per cent drop in net profit to HK$174.7 million (US$22 million) in its home market, which has been ravaged by violent protests since early June.
Despite this, Vitasoy managed to report a 3 per cent rise in overall profits to HK$533 million (US$68.2 million), which includes China, by far its biggest market.
The fall in earnings in Hong Kong could have been greater had it not been for a rise in the number of people buying the drinks from shops to consume at home. Many restaurants and cafes have been forced out of business by the unprecedented social unrest.
“In the second quarter, from July to September, we have done better than in the first quarter,” chief executive Roberto Guidett said on Thursday at a press conference after the results were announced.
“A number of shoppers are coming to buy our products more often because of more home consumption.”