Vitasoy flips to $46m profit, restores payout

Vitasoy International (0345) posted a net profit of HK$46 million for the year ended March, versus a loss of HK$159 million a year ago, and restored a final dividend of 1.4 HK cents per share.

Throughout the year, despite facing escalated raw material prices and utility costs, the company managed to generate a profit from operations amounting to HK$104 million. This marks a significant improvement compared to the previous year when they incurred a loss of HK$213 million.

The favorable outcome can be primarily attributed to the company's successful implementation of cost reduction measures across its operations, strategic promotional efforts in mainland China and an increase in government subsidies received by its Hong Kong operation compared to the previous year.

Vitasoy responded to escalating costs by raising prices last October in its mainland China market, followed by price increases in Hong Kong and Australia in April this year.

According to chief executive Roberto Guidetti, Vitasoy implemented single-digit price increases in various markets during the first half of this year. He further emphasized that the company would closely monitor cost trends and promptly adjust prices to ensure profitability, especially when input costs experienced structural increases.

During the fiscal year 2022/2023, the group received government subsidies amounting to HK$65 million specifically related to Covid-19, compared to the HK$20 million received in the prior fiscal year 2021/2022.

The firm proposed a final dividend of 1.4 HK cents per ordinary share, together with an interim dividend of 1.3 HK cents, bringing the total dividend to 2.7 HK cents.