Vitasoy profit inches up despite weak mainland business

Vitasoy International (0345) on Tuesday posted a slight increase in interim profit even as revenue fell, with its mainland China business hit by weak consumer sentiment and softer retail channels.

Its net profit inched up 0.7 percent year-on-year to HK$171.6 million.

The local beverages producer maintained the same interim dividend of 4 HK cents from the previous year.

Revenue dropped 6.3 percent to HK$3.23 billion, among which Chinese mainland income declined by 9 percent to HK$1.78 billion due to a slow down in the general trade channels where it has a significant presence.

Hong Kong operation also posted a 4 percent decrease in revenue to HK$1.1 billion, with Macau business, the city's canteen business and exports to the US all weaken despite the solid performance in Hong Kong beverage sector.

Looking ahead, the company said the external macro and competitive environment are evolving rapidly, with the Chinese mainland being at the forefront, while it forecasted its Hong Kong operation would work to accelerate growth in the second half.