Vinda profit slumps 78pc

Vinda International (3331) said its third-quarter operating profit slumped by 78.2 percent to HK$77 million, despite a 6.5 percent rise in revenue, due to pressure from higher costs, operational disruptions from Covid-related measures, and currency swings.

Shares of the tissue paper producer dropped 3.58 percent to HK$16.7 yesterday.

Though total revenue increased to HK$4.37 billion from July to September, gross profit fell by 17.1 percent yearly to HK$1.19 billion. But the gross margin narrowed by 7.8 percentage points to 27.2 percent over the same period.

Further, the earnings before interest, taxes, depreciation and amortization slid 40.1 percent to HK$399 million. Vinda said it is facing pressure from "unprecedented cost inflation." Moreover, total foreign exchange loss for the past quarter soared sixfold to HK$54.1 million amid a volatile currency market.

Meanwhile, the first nine months of this year posed a similar picture, as the operating profit reported a smaller 46.7 percent decline to HK$834 million, however, the total income rose 6.6 percent to HK$14.06 billion.

The gross profit from January to September decreased 11.2 percent year-on-year to HK$4.29 billion, while the gross margin reduced by 6.1 pps to 30.5 percent.

However, the loss from foreign exchange skyrocketed by 84 times to HK$76.5 million.