2020 Interim Results

 Profit doubled  

Net profit surged by 108% to HK$913 million

(17 July 2020 – Hong Kong) Vinda International Holdings Limited(stock code: 3331) announced today its unaudited interim results for the six months ended 30 June 2020.

2020 Interim Results Highlights:

–   Resilient performance despite the impact of the novel coronavirus pandemic

    • Total revenue increased by 0.9% (at a constant exchange rate) to HK$7,634 million in the first half of the year

    • Revenue rose by 14.9% (at a constant exchange rate) in the second quarter, in which the strong organic growth¹ of 20.1% in mainland China reflected a clear sign of recovery

    • E-commerce channels recorded a 30% organic growth, consolidating its leading position in the e-commerce channels

    • Feminine care and incontinence care business in mainland China delivered robust performance

–   Strong profitability attributable to the low wood pulp price and continuous portfolio mix enhancement

   • Gross profit increased by 32.6% to HK$2,941 million and gross margin was up by 10.4 percentage points (“ppts”)

    • Operating profit soared by 99.6% to HK$1,257 million while operating margin was widened by 8.5 ppts to 16.5%

    • Net profit grew significantly by 107.5% to HK$913 million. Net profit margin expanded by 6.4 ppts to 12.0%

–   Net gearing ratio² decreased by 8.5 ppts to 32.5%

–   Basic earnings per share rose by 107.3% to 76.3 HK cents. An interim dividend of 10.0 HK cents per share has been declared (1H2019: 7.0 HK cents per share)

–   Tissue Segment

    • Consumers’ awareness of personal hygiene heightened during the pandemic, contributing to an outstanding performance in our business of premium portfolio

    • Revenue amounted to HK$6,243 million, representing a growth of 0.3% at a constant exchange rate and accounting for 82% of the Group’s total revenue

–   Personal Care Segment

    • Revenue reached HK$1,391 million, representing a growth of 3.7% at a constant exchange rate and accounting for 18% of the Group’s total revenue

    • Feminine care and incontinence care business achieved robust performance

–    Inclusion in Hang Seng Composite Index, Hang Seng Stock Connect Greater Bay Area Composite Index, MSCI Global Standard Indexes and MSCI China All Shares Index, which will further create the investors’ interest in the group and enhance the profile in international capital market.

Mr. Christoph Michalski, Chief Executive Officersaid, “During the first half of 2020, the operating environment remained challenging due to the novel coronavirus pandemic. However, the Group achieved remarkable revenue growth thanks to the continuous portfolio mix enhancement and low pulp price. Looking ahead to the second half of 2020, as the consumers’ hygiene awareness heightened and the changes in their habits induced by the pandemic, which is beneficial to the upgrade of our household paper and personal care products. We will also leverage on our edge in e-commerce to seize the opportunities in the market and develop our business with focus on product quality and online development in order to maintain sustainable business growth.” 

Mr. Li Chao Wang, Chairmanconcluded, “2020 marks the 35th anniversary of Vinda, the Group met its stakeholders’ expectations in terms of its production capacity, business categories, profitability and market capitalization. However, we will not be complacent about our achievements. We will continue to persevere in product innovation, the optimization of our product portfolio, strict cost control, and in taking advantage of our well-developed distribution channels and in developing our sizable personal care business, enabling us to maximizing shareholder value and consolidating our market leadership.”

Remarks 

¹ Organic growth: Year-on-year growth at a constant exchange rate 

² Net gearing ratio: Net debt divided by total shareholders’ equity 

  Net debt: Total borrowings plus lease liabilities less cash and cash equivalents and restricted bank deposits

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