Vitasoy International (0345) H2 2013 earnings summary

Executive summary

• FY2012/13 delivered broad-based sales and profit growth across markets and product categories despite slowing economic conditions and rising labor and production costs.

• Growth priorities included strengthening brands and distribution, product innovation, and improving manufacturing efficiency.

Financial highlights

• Turnover rose 9% YoY to HKD 4.1bn, with growth across all operating markets in volume and value.

• Gross profit increased 9% to HKD 1.9bn; profit before taxation rose 4% to HKD 426m.

• EBITDA increased 12% to HKD 620m; EBIT rose 5% to HKD 445m; profit attributable to equity shareholders grew 8% to HKD 303m.

• Basic EPS rose 8% to HKD 0.296.

Outlook and guidance

• FY2013/14 expected to be challenging amid evolving global financial conditions and inflationary pressure on commodity and labor costs.

• Priorities include cautious pricing, productivity and cost management, product innovation, stronger distribution, and continued market expansion.

• In the U.S., normalized production was expected to support an improved profit position in the coming year.