VITASOY INT'L(HK:00345)2022-12-08 08:31Financial Performance - Revenue for the six months ended September 30, 2022, was HK$3,642 million, a 1% increase from HK$3,604 million in the same period of 2021[8]. - Gross profit for the same period was HK$1,738 million, reflecting a 1% increase from HK$1,727 million[8]. - EBITDA increased by 48% to HK$473 million, up from HK$320 million[8]. - Profit attributable to equity shareholders surged by 332% to HK$142 million, compared to HK$33 million in the previous year[8]. - Basic earnings per share rose to 13.3 HK cents, a 329% increase from 3.1 HK cents[8]. - The Group's revenue for the interim period increased by 1% to HK$3,642 million, compared to HK$3,604 million in the previous interim period[26]. - The Group's gross profit for the interim period was HK$1,738 million, up 1% from HK$1,727 million in the previous interim period[28]. - Profit before taxation surged over 400% to HK$175 million, compared to HK$34 million in the previous interim period[33][36]. - The Group reported a profit attributable to equity shareholders of $141,801,000 for the interim period, a significant increase from $32,804,000 in the previous interim period[138][141]. Revenue by Region - In Mainland China, revenue grew by 4% in local currency despite ongoing pandemic impacts[14]. - Hong Kong operations saw a revenue growth of 6%, supported by successful product innovations[16]. - Australia and New Zealand experienced an 8% revenue increase, driven by consumer interest in oat milk and the launch of new products[17]. - Singapore's revenue contracted by 16% in local currency, resulting in an operating loss due to market challenges[18]. - The Philippines joint venture with URC achieved double-digit revenue gains, capturing a 14% market share in the plant milk category[19]. - Revenue from external customers in Mainland China decreased by 1% to HK$2,216 million, while profit from operations improved to HK$139 million from a loss of HK$33 million in the previous year[50][51]. - Revenue in local currency terms grew by 4% to RMB1,916 million, driven by strong growth in operating profit due to scale acceleration and tight control over operating costs[50][55]. - Revenue from Hong Kong operations (including Hong Kong SAR, Macau SAR, and exports) grew by 6%, driven by strong core business and successful product innovations[22]. - In Australia and New Zealand, revenue increased by 8% in local currency, attributed to strong performance in the VITASOY Oat Milk portfolio[26]. Operating Expenses and Profitability - Total operating expenses decreased by 9% to HK$1,588 million, compared to HK$1,737 million in the previous interim period[28]. - Marketing, selling, and distribution expenses decreased by 10% to HK$1,068 million, reflecting rephased advertising and promotion spending[28]. - The gross profit margin was maintained at 48%, consistent with the previous interim period, due to higher sales volume and lower trade promotional expenses[28]. - The Group's profit attributable to equity holders increased by over 300%, with adjusted profit showing a 187% improvement excluding COVID-19 related government subsidies[23]. Cash Flow and Liquidity - As of 30th September 2022, cash and bank deposits amounted to HK$898 million, up from HK$622 million as of 31st March 2022[40]. - The Group's net cash balance was HK$80 million, a significant improvement from a net debt balance of HK$232 million as of 31st March 2022[40]. - Cash generated from operations for the six months ended September 30, 2022 was HK$516,743,000, significantly higher than HK$277,131,000 in the previous year, indicating an increase of about 86.5%[95]. - The net cash generated from operating activities was HK$494,425,000, compared to HK$274,128,000 in the prior year, reflecting a growth of approximately 80.4%[95]. - The company had cash and cash equivalents of HK$897,800,000 as of 30th September 2022, an increase from HK$799,453,000 at the same time in 2021[96]. - The company incurred net cash used in investing activities of HK$112,557,000, a decrease from HK$230,484,000 in the prior year, indicating improved cash management[95]. Dividends and Shareholder Returns - An interim dividend of HK1.3 cents per ordinary share was declared for the interim period, compared to nil in the previous interim period[25]. - The Company declared an interim dividend of HK$1.3 cents per ordinary share for the interim period, compared to nil in the previous interim period[193]. - The Register of Members will be closed on December 6, 2022, for shareholders to qualify for the interim dividend, with all transfers needing to be lodged by December 5, 2022[194]. Employee and Community Engagement - Approximately 46,501 hours were spent on learning and development activities by employees during the interim period[71]. - The total number of employees worldwide as of September 30, 2022, was 6,869[71]. - The company supported a school nutrition program benefiting approximately 5,000 rural children across 35 primary schools in various provinces in Mainland China[74]. - An interactive online education program focusing on plant-based nutrition reached 25,000 children aged 6 to 16 in Hong Kong SAR[78]. - The company continued to drive community programs under the theme "Nourish Your Body, Nourish Your Mind" to promote health awareness[73]. Capital Expenditure and Assets - Capital expenditure during the interim period decreased to HK$77 million from HK$95 million in the previous interim period, primarily for normal maintenance and upgrades[41][45]. - The total consolidated assets as of September 30, 2022, were HKD 6,420,399,000, down from HKD 6,807,120,000 as of March 31, 2022, reflecting a decrease of approximately 5.7%[127]. - The Group's reportable segment assets as of September 30, 2022, totaled HKD 7,677,659,000, down from HKD 8,227,692,000 as of March 31, 2022, representing a decrease of about 6.7%[122]. Share Capital and Equity - The total number of ordinary shares issued by the Company as of September 30, 2022, was 1,070,801,035[196]. - The amount of share capital increased to $1,019,760,000 as of 30th September 2022, up from $1,013,028,000 at 31st March 2022[163]. - The company held 367,000 treasury shares as of 30th September 2022, down from 500,000 shares at 31st March 2022[167]. - The total number of options granted during the six months ended 30th September 2022 was 3,428,000, compared to 2,704,000 in the previous year[176]. Joint Ventures and Acquisitions - Vita International Holdings Limited plans to acquire the remaining 49% of Vitasoy Australia Products Pty. Ltd. for AUD27,500,000 (approximately HK$137,500,000), with the acquisition expected to close around the end of January 2023[189]. - Sales to the joint venture in the Philippines for the interim period totaled HK$12,283,000, an increase of 55.5% compared to HK$7,902,000 in the previous interim period[187]. - The amount due from the joint venture as of September 30, 2022, was HK$8,923,000, up from HK$4,919,000 as of March 31, 2022, representing an increase of approximately 81.5%[187].