12th July.,
2001
Vitasoy sustains stable growth
Better prospects expected in the longer term with diversified
products and markets and new production facilities
Hong Kong, 12 July 2001 - Vitasoy International Holdings
Limited (VIHL) (SEHK Code: 0345), leading manufacturer
and distributor of non-carbonated beverage and food
based in Hong Kong, today announced that for the year
to 31 March 2001, profit attributable to shareholders
was HK$128 million, an increase of 1.6% over the previous
year. Total turnover increased by 6.7% to HK$2,012 million.
The Group's basic earnings per share were HK13.2 cents
(2000: HK12.9 cents adjusted for bonus issue in September
2000). The Group's board of directors has proposed a
final dividend of HK5.1 cents per share, which together
with the interim dividend of HK2.8 cents per share,
would make the total dividend for the whole year HK7.9
cents (2000: HK7.0 cents adjusted for bonus issue in
September 2000).
Commenting on the results, Executive Chairman Winston
Lo Yau-lai was satisfied that the Group had been able
to sustain an upward trend of growth despite the challenges
it faced in certain markets.
"Through successful market and product diversification,"
said Mr Lo, "we were able to maintain good growth
in our traditional markets while making headway in new
markets and new product segments."
Profit growth for VIHL was especially strong in Hong
Kong due to the Group's success in new product launches
and re-launches in new packaging. No less than eight
new drinks were launched during the year, including
VITA oolong tea, jasmine tea, Family Milk, yoghurt flavored
drink, lychee juice drink and green tea with new flavour
and new packaging design. The Group's tuck shop business
operated under subsidiary Vitaland Services Limited
also saw good growth with the number of tuck shops increasing
by 26% to 144 last year.
According to Mr Lo, the improvement in profit in the
local market was due largely to higher productivity
and more efficient supply chain management that helped
save the spending on raw materials and packaging materials,
apart from new product launches and effective marketing
campaigns.
In China, improving market conditions served to boost
sales by 22%. Sales in Guangdong saw a robust growth
of nearly 35%. Bottled VITASOY was particularly popular,
growing by no less than 100% in terms of sales volume.
Other products like tea and liquid milk were also welcomed.
Sales in the US grew by a moderate 6% year-on-year.
While products like natural soymilk witnessed healthy
growth, the sales of tofu were less impressive. Profitability
of Vitasoy USA as a whole was affected by the imperative
to spend more on marketing amidst stronger competition.
However, US consumers have been receptive to Vitasoy's
refrigerated natural soymilk that was launched last
year in some 4,500 stores in the mainstream supermarket
chains in major coastal cities.
Mr Lo said: "The US remains a key market with great
potential for growth in the longer term despite lower
profitability in the near term. Continued investment
in market development and expansion will ensure Vitasoy's
market share."
On the production side, the latest development for the
Group is that its manufacturing arm in Australia, Vitasoy
Australia Products Pty Ltd., has commenced commercial
production in early July this year.
Mr Lo noted: "We are very excited about this new
plant, which has been completed within budget. The Australian
market for soymilk has been growing steadily as consumers
become more aware of the health benefits of soy. The
commissioning of our new plant ensures that we are well
positioned to profit from this market growth."
Looking forward, Mr Lo was optimistic that VIHL would
be able to achieve higher growth in sales and profit
in the medium term.
"Hong Kong remains a key contributor to our profit
aswe continue rolling out new products and product extensions
with strong marketing support as well as improving our
productivity and costs," he explained.
"We also firmly believe that the growing demand
for soy products in other key markets like China, the
US and Australia will be very conducive to our future
development," he continued.
"With production facilities established in all
of these markets, Vitasoy is now in a very good position
to profit from these fast growing markets in the longer
term as soy products are increasingly welcomed by consumers
all over the world as part of a healthy diet."
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, China, the
United States and Australia, 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.
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
Email: dchu@hk.bsmg.com;
cchan@hk.bsmg.com
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