30th Nov.,
2001
Vitasoy maintains interim dividend
level
and sustains sales growth despite weak retail market
Strategic investment for market & product diversification
Expected to generate higher growth in the long term
Hong Kong, 30 November 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 six
months to 30 September 2001, total turnover increased
by 10 percent to HK$1,104 million whereas profit attributable
to shareholders was HK$49 million, down from HK$66 million
in the previous year.
The Group's basic earnings per share were HK5 cents
(2000: HK6.7 cents). The Group's board of directors
has declared an interim dividend of HK2.8 cents per
share (2000: HK2.8 cents per share).
VIHL Executive Chairman Winston Lo Yau-lai
was satisfied that the Group was able to maintain the
same level of interim dividend as the year before and
achieve sales growth virtually in all markets despite
a temporary drop in profit due to investment in new
production facilities and market development as well
as the sluggish retail environment.
"We have been making strategic investments in both
the United States and Australia with a view to further
strengthening our presence in these markets that possess
great potential for growth, "said Mr Lo.
VIHL joint-venture manufacturing plant in Wodonga, Victoria,
Australia recently commenced production. This plant
now produces fresh and UHT (ultra high temperature)
soymilk for the Australian market. The plant required
a total investment of HK$106 million.
The US market recorded a healthy growth in turnover
of 14 percent. Significant investment was made in penetrating
into a wider segment of the mainstream market as well
as advertising and promotion. However, Mr Lo believed
that such investment was well justified in view of the
enormous potential of the US soy-based products market.
Hong Kong remained the Group's main revenue base. Through
new product launches and aggressive marketing campaigns,
the Group sustained a sales growth of 7 percent. Among
the 15 new products during the period, the VITA Gor
Yin Hai range of fruity teas and flavoured water as
well as the VITA Green Tea range were particularly successful
with consumers.
The Group's tuck shop business in Hong Kong also sustained
healthy growth. The number of tuck shops operated by
wholly-owned subsidiary Vitaland Services Limited increased
to 166 from 144 six months ago.
Mr Lo said, "Our strategy in Hong Kong is aimed
at achieving long-term growth through a more diversified
product range and revenue base. We have been making
good progress in that regard. On the other hand, to
counter the impact of the sagging economy, we are also
focused on enhancing operational efficiency and streamlining
our corporate sourcing in order to improve our gross
margin."
In Hong Kong, VIHL will continue to roll out new products
to stimulate demand and cement its market leader position,
according to Mr Lo.
VIHL's sales in the Chinese Mainland also grew notwithstanding
the competitive market environment. Growth was concentrated
in the more affluent southern part of China. Other markets
like Europe and Macau also saw encouraging growth.
Looking forward, Mr Lo was cautiously optimistic that
VIHL would continue to grow in the remainder of fiscal
2001-02.
"Our proactive approach in product development
and market diversification has proven to be effective
in bringing in higher sales," said Mr Lo.
"We are currently at the peak of an investment
phase," he continued, "but these investments
will keep us in a very strong position for achieving
sales growth and profitability in the medium and long
terms, given the growth potential of the US, Australian
and Chinese markets."
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,
the United States and Australia, Vitasoy has successfully
developed and launched more than 140 products in different
forms and sizes that are consumed in over 30 markets
throughout the world.
-- END -
Announcement of results
for the six months ended 30th September,2001
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
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