Vitasoy International (0345) more than doubled its net profit to HK$235 million for the year ended March, but only raised the final dividend by 62 percent to 10.2 HK cents.
The rise was driven by enhanced sales execution focus in China, strong performance in the Hong Kong operation, and its strategic emphasis on improving procurement and operating efficiency at both the market and corporate levels, the soymilk maker said in a filing on Tuesday.
Revenue inched up by 1 percent to HK$6.3 billion for the period, thanks to growth of its core products in China – with its sales momentum gradually picking up in the second half of the financial year – alongside the solid achievements of the Hong Kong business.
Sales in Hong Kong increased by 4.5 percent to HK$2.36 billion with operating profit growing 24 percent to HK$279 million. Turnover for China grew 1 percent to HK$3.54 billion while profit from operations jumped by 41 percent to HK$311 million.
Gross profit margin increased 1.3 percentage points to 51.3 percent, mainly due to lower commodity costs and a more efficient manufacturing footprint, but was partially offset by higher trade promotional expenses in China and the impact of unfavourable foreign exchange movements.
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