Vitasoy International (0345) H1 2025 earnings summary

Executive summary

• Revenue increased 2% year-over-year to HK$3,443 million for the six months ended 30th September 2024, with profitability improvements across most regions, especially Mainland China and Hong Kong.

• Operating profit rose 50% year-over-year to HK$257 million, mainly driven by efficiency gains and higher sales in Mainland China and Hong Kong.

• Net profit attributable to shareholders grew 5% to HK$171 million; basic EPS up 5% to HK15.9 cents.

• Gross profit margin improved to 51.6% due to lower commodity costs and production optimisation.

• Interim dividend declared at HK4.0 cents per share, up from HK1.4 cents last year, reflecting improved profitability and cash position.

Financial highlights

• Gross profit increased 4% year-over-year to HK$1,777 million, with gross margin up 1.1ppt to 51.6%.

• EBITDA rose 18% to HK$496 million, with EBITDA margin improving from 12% to 14%.

• Net cash balance increased to HK$557 million from HK$111 million at 31 March 2024; net of borrowings, HK$935 million.

• Capital expenditure was HK$45 million, mainly for production line upgrades.

• Basic and diluted EPS: HK15.9 cents (up from HK15.2 cents).

Outlook and guidance

• Focus remains on profitable revenue growth, operational efficiency, and product innovation across all markets.

• Mainland China aims to rescale operations, prioritise commercialisation, innovation, and new customer acquisition.

• Hong Kong expected to sustain growth through innovation and value competitiveness.

• Australia, New Zealand, and ASEAN expected to maintain topline growth and improve profitability following resolution of manufacturing issues.

• Long-term confidence in plant-based food and beverage market growth and expansion.