Financial Highlights

During the six months ended 30 September 2024, the Group delivered revenue growth of 2%. The Group's gross profit margin rose to 51.6% in Hong Kong Dollar terms, mainly due to lower commodity prices and production optimisation gains. Profit from operations grew strongly by 50%. The primary contributors were Mainland China and the Hong Kong Operation.

Mr. Winston Yau-lai Lo, Executive Chairman of Vitasoy International Holdings Limited, said at the press conference today, "During the interim period, the Group delivered sales growth whilst continuing our strong improvement in operating profit margin. Looking ahead, we are confident in our long-term potential within our exciting product categories. We will work to sustain sales growth and continue to drive operational efficiencies."

The Board of Directors intends to rebalance the full year dividends payment, while maintaining a stable annual payout ratio, subject to the availability of cash resources. Based on the Group's financial performance, and having regard to the Group's cash position, the Board of Directors has declared an interim dividend of HK4.0 cents per ordinary share for the interim period (FY2023/2024 interim: HK1.4 cents per ordinary share).

Mainland China -

Stable sales following optimisation of online/offline sales mix and production optimisation gains leading to a strong increase of 15% in profit from operations, in Hong Kong Dollar terms, and an operating margin of 11%

In Mainland China, overall sales remained stable as compared with the previous interim period. Revenue across regions grew as a result of improved sales execution and product innovation but was offset by erosion in the online business, where Vitasoy prioritised a balance between its equity and sales building activities against profitability.

During the interim period, Vitasoy has gradually improved commercialisation and sales execution, resulting in higher sales per store, distribution gains and stronger performance in its innovative product range. Among Vitasoy's target shoppers, the introduction of VITASOY Banana and VITASOY Strawberry variants generated interest and sales, while its innovative VITA VLT Zero and VLT Sparkling Zero offerings delivered the distinctive essence of its VLT range without added sugar, catering to the evolving preferences of shoppers.

Mainland China's profit from operations grew 16% in local currency terms, representing a 11% operating profit margin, primarily driven by improved manufacturing efficiency and continued disciplined cost control.

Hong Kong Operation (Hong Kong SAR^[1], Macau SAR^[2] and Exports) -

Profit from operations growing substantially by 44%, due to sustained revenue growth and lower commodity prices

Despite a challenging retail environment, the Hong Kong Operation continued to grow sales at 3%, behind a strong core business and high shopper acceptance of the Company's innovative VITASOY Banana, VITASOY Strawberry, VITA VLT Zero and VLT Sparkling Zero products.

Vitaland's school and export businesses also registered revenue growth as school attendance normalised and demand strengthened in overseas markets, respectively.

Profit from operations grew significantly by 44%, due to sustained revenue growth and lower commodity prices.

Australia and New Zealand -

A rebound in revenue growth, and enhanced market positioning following the re-establishment of sustainable production platform

Revenue from Australia and New Zealand increased by 6% in local currency, reflecting strong market demand for Vitasoy's brands. Vitasoy sustained its leadership in the Soy and Oat milk segments in grocery and delivered incremental growth in the chilled plant milk and yoghurt segments.

An operating loss of HK$46 million for the interim period was the result of manufacturing issues, which have now been fully resolved, as well as higher logistics and overhead costs.

Singapore -

The tofu business recorded an increase in revenue; operating losses reduced

Revenue from Singapore increased by 5% in local currency, with strong export performance in the tofu business. This was partially offset by a beverage sales inventory adjustment as Vitasoy switched to a new distributor. Stronger revenue growth coupled with stringent operating cost controls helped to reduce the operating loss substantially by 78% to SGD0.4 million.

The Philippines -

The joint venture with Universal Robina Corporation in the Philippines will maintain its growth trajectory in the single-serve and multi-serve segments. Vitasoy will also continue to raise awareness and stimulate trial of its plant-based beverages, particularly its newly launched Almond and Oat variants, to increase growth and market share in this high potential market.

General Outlook

In the second half of the financial year, the Group's goal will be to sustain revenue growth and maintain profitability after the summer peak season. Vitasoy will continue to drive improved performance in execution, expansion and innovation, while continuing to manage costs and operational efficiencies in a disciplined manner.

Given the strong fundamentals of Vitasoy's business model, the Group remains confident in the long-term potential of its portfolio across the markets in which the Group operates.

For more details, please refer to the following documents:

• Announcement of results for the interim period ended 30 September 2024:

  Link

• Photos download:

  Link

Vitasoy International Holdings Limited is a leading manufacturer and distributor of plant-based food and beverages. Established in 1940 by the late Dr. Kwee-seong Lo in Hong Kong China, the Company strives to promote sustainable plant-based nutrition through provision of a variety of high-quality products with Nutrition, Taste and Sustainability as the guidelines for its portfolio offerings. Currently, Vitasoy has operations in China, including Mainland China and Hong Kong Special Administrative Region, Australia, Singapore and the Philippines. Its products are available in about 40 markets worldwide.

Vitasoy is listed on the main board of the Hong Kong Stock Exchange (00345.HK) and included as a constituent of Morgan Stanley Capital International (MSCI) Hong Kong Small Cap Index, and Hang Seng Corporate Sustainability Benchmark Index, among others.

Vitasoy website: www.vitasoy.com