Vitasoy International (0345) H1 2016 earnings summary

Executive summary

• H1 FY2015/16 net sales rose 14%, gross profit 18% and profit attributable to shareholders 40%; constant-currency growth was 17% for sales and 38% for the bottom line.

• Core categories and mainland China accelerated growth; higher manufacturing utilization and favorable raw-material costs supported profit growth ahead of revenue.

Financial highlights

• Net sales reached HKD 3.1bn, up 14%; mainland China grew 32% YoY and accounted for 49% of revenue, versus 42% a year earlier.

• Gross profit increased 18% to HKD 1.6bn; EBITDA rose 28% to HKD 529m.

• Profit before taxation increased 35% to HKD 422m; profit attributable to equity shareholders rose 40% to HKD 310m; basic EPS gained 39% to HKD 0.297.

Outlook and guidance

• Hong Kong plans to reinforce the core VITASOY proposition, sustain recent innovations and build awareness and trial for VITASOY GO.

• Mainland China plans to deepen execution in existing outlets, expand into markets and channels, and continue core and premium portfolio growth, including the VITA Hong Kong Style line.

• Australia launched VITASOY Almond Milk; North America will extend NASOYA Baked Tofu with a chipotle flavor and focus on manufacturing and personnel issues.

• A thorough review of strategic options for North America is planned; the stated priority is consistent, sustainable financial performance across markets.