VITASOY INT'L(00345)2024-07-12 08:29Financial Performance - For FY2023/2024, the profit attributable to equity shareholders grew by 155% to HK$116 million, driven by improved sales execution in Mainland China and product innovation in Hong Kong[15]. - Group revenue for FY2023/2024 was HK$6,217 million, representing a 1% increase over the previous year, with a 10% revenue growth in Mainland China in the second half offsetting a 3% decline in the first half[15]. - Gross profit increased by 3% to HK$3,111 million, while EBITDA rose by 10% to HK$685 million[8]. - Basic earnings per share increased by 153% to 10.9 HK cents, compared to 4.3 HK cents in the previous year[8]. - The total dividend for FY2023/2024 is proposed at 7.7 HK cents per ordinary share, which includes a final dividend of 6.3 HK cents and an interim dividend of 1.4 HK cents[16]. - Total assets decreased by 4% to HK$5,637 million as of March 31, 2024[11]. - The net cash balance improved to HK$111 million, compared to a net debt of HK$197 million in the previous year[11]. - Total equity attributable to equity shareholders increased by 1% to HK$3,005 million[11]. - Profit from operations grew significantly by 79% in FY2023/2024, attributed to a higher gross profit margin and greater efficiencies following rightsizing of investments and expenses[29]. - Gross profit margin rose to 50%, mainly due to higher selling prices and increased efficiency in trade promotional spending[29]. Regional Performance - In Mainland China, revenue increased by 10% in local currency terms during the second half of the year, with both VITASOY and VITA brands returning to growth[28]. - The Hong Kong Operation achieved robust single-digit growth through strong core portfolio performance and selective product innovation[28]. - Revenue from external customers in Mainland China was RMB 3,087 million, showing no change year-on-year, while profit from operations increased by 402% to RMB 203 million[60]. - Revenue from external customers in HK$ was HK$3,359 million, a decrease of 4% from HK$3,509 million in the previous year[60]. - In Australia and New Zealand, revenue from external customers decreased to HK$527 million, a decline of 9% due to out-of-stock situations and logistics issues[65]. Strategic Initiatives - The company aims to continue growing its business and improving structural profitability in the coming year[27]. - New product offerings are being expanded in Mainland China and Hong Kong to appeal to different consumer segments[30]. - The company is well-positioned to capitalize on the growing demand for plant-based beverages[14]. - The company aims to improve revenue and profit growth in Mainland China, leveraging the long-term growth potential of the plant-based movement[72]. - The Hong Kong operation plans to sustain growth by strengthening core products and introducing innovative offerings under the VITASOY and VITA brands[74]. Sustainability and Governance - The company retained its grade A rating in the MSCI ESG ratings and was featured in Corporate Knights' Global 100 Most Sustainable Corporations for the fifth consecutive year[41]. - The company is committed to reducing water intensity in production and aims for zero manufacturing waste to landfill by FY2025/2026[36]. - The company has engaged with top suppliers to improve carbon data for Scope 3 emissions and conducted ESG risk mapping for key commodities[40]. - The Company emphasizes the integration of ESG considerations into its strategic plans, reflecting a proactive approach to macro-economic and regulatory changes[96]. - The Board has established various committees to carry out specialized functions, ensuring effective governance and oversight[92]. Board Composition and Diversity - The board consists of 11 directors, with 5 being independent non-executive directors and 2 being female[85]. - The Company aims to maintain female representation on the Board at "not less than 18%" and will review this target over time[108]. - The overall gender diversity of the Company's workforce for FY2023/2024 is approximately 48% female and 52% male[110]. - The Board Diversity Policy aims to achieve diversity through factors such as experience, professional qualification, gender, and ethnicity, with annual reviews for compliance and effectiveness[102][103]. Risk Management and Internal Control - The Company acknowledges its responsibility for risk management and internal control systems, ensuring they provide reasonable assurance against material misstatement[189]. - The internal control system is designed to manage business risks rather than eliminate them, based on COSO principles[193]. - The Company has established a whistleblowing system to enhance communication regarding ethics and integrity standards[200]. - The Audit Committee is responsible for reviewing the internal control system of anti-corruption[151]. Training and Development - The average training hours for Directors during FY2023/2024 was 75 hours, indicating a commitment to continuous professional development[167]. - The average training hours of Senior Management during FY2023/2024 was 60 hours, emphasizing the importance of continuous professional development[173]. - The Company encourages Senior Management to participate in various continuous professional development programs at the Company's expense[174].