Hong Kong drink maker Vitasoy’s profit doubles to US$30 million on China demand
Company proposes final dividend of 10.2 Hong Kong cents per share, taking total payout for the year to 14.2 Hong Kong cents
Hong Kong beverage company Vitasoy International Holdings on Tuesday reported a doubling of its full-year net profit, driven by rising demand for its products in mainland China.
Vitasoy’s net profit jumped 102 per cent from a year earlier to HK$235 million (US$29.9 million) for the year ended March 31. Revenue came in at HK$6.27 billion, practically unchanged from HK$6.21 billion a year earlier. Vitasoy’s mainland operations contributed more than half of the revenue at HK$3.36 billion, while Hong Kong accounted for HK$2.26 billion.
The company said its sales in Australia and New Zealand continued to grow, allowing it to pare its losses in these two markets “following restored manufacturing stability in a very competitive sales environment”. In Singapore, the company said it narrowed operational losses by improving its export business.
“We are confident that the company’s business will continue to optimise and grow in the long term,” Winston Lo, executive chairman, said at a media briefing following the earnings release.
The company proposed a final dividend of 10.2 Hong Kong cents per share. Along with the interim dividend of 4 Hong Kong cents, the total dividend for the year stood at 14.2 Hong Kong cents, up from 7.7 Hong Kong cents a year earlier.
New products introduced in Hong Kong this year – a low-sugar peach soy milk and Ya Shi Xiang Lemon tea – have been well received by consumers, Lo said, adding that the company was trying to satisfy the needs of both young and old customers.