22nd Nov.,
2000
Vitasoy nets healthy growth in interim
profit
by market diversification and cost contro
Sales growth to sustain in second
half
Hong Kong, November 22, 2000 — Leading
manufacturer and distributor of non-carbonated beverages,
Vitasoy International Holding Limited ("VIHL"
or "the Group") (HK:0345) today announced
a net profit attributable to shareholders of HK$66 million
for the six months to September 30, 2000, up 20% from
the same period last year (1999 interim: HK$55 million).
Turnover for the period was HK$1,004 million,
rising by 3% (1999 interim: HK$979 million). Basic earnings
per share were HK6.7 cents (1999 interim: HK5.6 cents
per share adjusted for bonus issue in September 2000).
The Board of Directors has declared an
interim dividend of HK2.8 cents per share (1999 interim:
HK2.5 cents per share adjusted for bonus issue in September
2000).
The Group attributed the healthy mid-year
results to a successful strategy of geographical diversification
and expansion as well as effective cost containment.
At the results announcement today, Mr Winston
Lo, VIHL Executive Chairman, said, "We have been
able to further strengthen our brand recognition in
markets like the US and Mainland China while effectively
streamlining our operation to reduce our operating cost
in Hong Kong. All these are important for ensuring a
high profit margin."
Sales in Mainland China in the six-month
period under review registered healthy growth whereas
sales in the US market also saw stable improvement.
"Our strong distribution network in
the more affluent Guangdong province has helped us achieve
strong growth in sales despite a relatively weak non-alcoholic
beverage market in the Mainland, and bottled Vitasoy
and tea products have been especially popular,"
said Mr Lo.
In the US, demand for Vitasoy’s soymilk
and tofu continued to be strong. NASOYA and AZUMAYA
are now the leading brands of tofu in the US soyfood
market on account of their high quality.
In addition to ethnic and health food stores,
VIHL has also been making headway in penetrating mainstream
supermarket chains in the US.
"We have been taking a pragmatic and
discriminate approach in selecting our target supermarket
chains in view of the high cost involved," said
Mr Lo, "and this approach has been rewarding so
far."
Back in Hong Kong, effective cost control
has ensured an improved gross margin for VIHL. The commencement
of a distilled water production line in early 2000 has
helped sales and margin growth. Tuckshop sales also
improved with the rise in the number of the Group’s
school tuckshops. On the other hand, gross profit in
Hong Kong improved over last year as a result of savings
in raw material and packaging costs with increased sourcing
in Mainland China.
Looking ahead, Mr Lo is confident of higher
growth in the near term in view of improved economic
climate in Hong Kong, rapid growth of the soyfood market
in the US and effective promotion in the vast market
of the Mainland.
"We are always on the look-out for
effective ways to maximize the value of our business,
particularly in North America and Mainland China,"
Mr Lo said.
He said the Group would continue the strategy
of global diversification and expansion especially in
markets of high growth potential such as Australia.
"With the imminent establishment of a production
base in Australia, we expect to see sales there to increase
further, which will translate into meaningful contributions
to the Company, both in terms of income and profit,
in the long run."
Mr Lo emphasized, "At Vitasoy, our
aim is obviously to ensure the highest possible return
for our shareholders. Given the sound fundamentals,
I am optimistic that the Group can maintain the profitability
in the second half."
Vitasoy International Holdings Limited
is one of the leading manufacturers and distributors
of non-carbonated drinks with a base in Hong Kong. Founded
in 1940 and with production facilities in Hong Kong,
Mainland China and the United States, Vitasoy has successfully
developed and launched more than 120 products in different
forms and sizes that are consumed in over 25 markets
throughout the world.
-- END --
For more information, please contact:
Stella Lung
Public Relations Manager
Vitasoy International Holdings Limited
Tel: 2468 9644 Fax: 2465 1008
e-mail:pubrel@vitasoy.com
Debbie Chu / Carson Chan
Scotchbrook-BSMG Worldwide
Tel: 2877 3939 Fax: 2877 0818
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