Vitasoy International Holdings Limited · HKEX:345
Vitasoy International — FY2023/24 Earnings Presentation
36 slides from Vitasoy International's earnings presentation, Jun 20, 2024
Slide 1: Annual Results FY2023/24
Annual Results FY2023/24 20 June 2024
Slide 2: Financial Review
FINANCIAL REVIEW Ian Ng Group CFO
Slide 3: Disclaimer
Disclaimer In addition to historical information, this presentation contains forward-looking statements with respect to the results of the operations and business of Vitasoy. These forward-looking statements represent Vitasoy’s expectations or beliefs concerning future events and involve known and u
Slide 4: 2H FY23/24 Financial Performance
2H FY23/24 FINANCIAL PERFORMANCE Net of currency impact and COVID-19 related government HKD’ million 2H 2023/24 YoY subsidies Revenue 2,826 +5% +6% Gross profit 1,400 +10% +12% GP% 49.5% +2.3ppt +2.5ppt Profit from operations 14 N/A N/A EBITDA 263 +78% +88% Loss to shareholders (46) Improved 52% Imp
Slide 5: FY23/24 Financial Performance
FY23/24 FINANCIAL PERFORMANCE Net of currency impact and COVID-19 related government HKD’ million FY 2023/24 YoY subsidies Revenue 6,217 -2% +1% Gross profit 3,111 +3% +7% GP% 50% +2.5ppt +2.7ppt Profit from operations 185 +79% +392% EBITDA 685 +10% +27% Profit to shareholders 116 +155% N/A 5
Slide 6: Basic Earnings Per Share
BASIC EARNINGS PER SHARE HKD cent 12 HKD10.9 cents 10 8 Increased 153% 6 HKD4.3 cents 4 2 0 FY 2022/23 FY 2023/24 6
Slide 7: Financial Position
FINANCIAL POSITION Cash Bank Borrowings HKD million HKD million 800 HKD 794M 600 HKD 525M 700 500 600 HKD 555M 500 400 400 300 HKD 256M 300 200 200 100 100 Mar 23 Mar 24 Mar 23 Mar 24 7
Slide 8: Capital Expenditure
CAPITAL EXPENDITURE HKD million 160 HKD 154M 140 HKD 133M 120 CAPEX reduced after production line upgrade in previous year 100 80 60 40 20 0 FY 2022/23 FY 2023/24 8
Slide 9: Key Ratios
KEY RATIOS March 2023 March 2024 GEARING 25% 23% GEARING 21% 13% (Excluding lease liabilities) ROCE 18% 21% DIVIDEND HK2.7¢/share HK7.7¢/share 9
Slide 10: Business Review & Outlook
BUSINESS REVIEW & OUTLOOK Roberto Guidetti Group CEO
Slide 11: Continuing Structural Improvement
CONTINUING STRUCTURAL IMPROVEMENT Mainland China strong results in 2nd Half • Revenue +10% in RMB • Operating Profit RMB 29 million vs a RMB 80 million loss last year Total Group improving full Fiscal Year profitability • Operating Profit in HK$ was HK$185 million vs HK$104 million in FY2022/23 • Ne
Slide 12: Outlook
OUTLOOK • Confident in increasing revenue and profit growth in Mainland China and Group level • Mainland China to grow sales and profitability via execution of core assets and innovation • Hong Kong Operation to sustain its single digit growth via portfolio innovation • Australia to improve manufact
Slide 13: Revenue by Geography – FY2023/24
REVENUE BY GEOGRAPHY – FY2023/24 Group China China China Australia Singapore Growth % Total Total Mainland HKO & NZ Net of currency 1% 2% ON PAR +4% -5% -2% HKD -2% -1% -4% +4% -9% ON PAR 2% Mainland FY 2023/24 FY 2022/23 China 8% Mainland China 54% 55% HK Operation 54% HK Operation 36% 34% 36% Aust
Slide 14: Operating Profit by Geography – FY2023/24
OPERATING PROFIT BY GEOGRAPHY – FY 2023/24 Group China China China Australia Growth % Total* Total Mainland HKO & NZ Singapore Net of currency +392% 124% 438% +42% In Loss In Loss HKD +383% 122% 414% +42% In Loss In Loss HKD million 500 445 400 FY22/23 300 200 221 225 185 200 158 FY23/34 100 38 41 7
Slide 15: China
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Slide 16: China Total
CHINA TOTAL REVENUE: HK$ 5,583M 1% (2%*) OP : HK$ 445M 69% (124%*) MAINLAND HONG KONG OPERATION REVENUE: HK$ 3,359M 4% (ON PAR*) REVENUE: HK$2,224M 4% OP : HK$ 221M 380% (438%*) OP: HK$225M 3% (42%*) *Excluding16COVID related government subsidies received in prior financial year and curren
Slide 17: Mainland China Comparison: First Half vs. Second Half vs. Full Year
MAINLAND CHINA COMPARISON FIRST HALF VS. SECOND HALF VS. FULL YEAR Growth % vs Prior Financial Year 1H FY23/24 2H FY23/24 Full Year Revenue - 6% + 10% On Par Operating Profit + 47% Loss in prior year + 438% Revenue Operating Profit 4,000 300 RMB million RMB million 3,084 3,087 203 3,000 200 174 1,91
Slide 18: Mainland China
MAINLAND CHINA REVENUE: HK$ 3,359M 4% (ON PAR*) OP: HK$221M 380% (438%*) • Restored 10% revenue growth in 2nd Half • Improving structural profitability – Operating profit grew by 438% • Balanced growth across both brands, VITASOY and VITA, and geographies • Gradually improving availability, in-st
Slide 19: Going Forward
GOING FORWARD • Continue to drive sales at improved profitability via enhanced field sales execution • Focus on core products and geographies to continue improve profitability and efficiency • Drive new campaigns and selective innovation in strong markets 19
Slide 20: New Exciting Innovations on Core Range
NEW EXCITING INNOVATIONS ON CORE RANGE VITASOY Low Sugar Banana, Strawberry Soyabean Milk VLT Zero Sugar VITA No Sugar Tea 20
Slide 21: Hong Kong Operation
HONG KONG OPERATION REVENUE: HK$2,224M 4% OP: HK$225M 3% (42%*) • Strong momentum from on-the- go consumption and normalised Vitaland school business offset softened take-home channel • Core products under both brands VITASOY and VITA performing well whilst new platforms provided additional growt
Slide 22: Australia & New Zealand
Nutrish & Delish MICK ge @ For more info visit www.vitasoy.com.au
Slide 23: Australia & New Zealand
AUSTRALIA & NEW ZEALAND REVENUE: HK$527M 9% (5%*) O(L): HK$(81M) • Revenue affected by manufacturing attainment issues now being addressed • Operating profit affected by lower sales and higher operating cost • Expanding plant-based yoghurt offerings *Excluding currency impact 23
Slide 24: Singapore
SINGAPORE
Slide 25: Singapore
SINGAPORE REVENUE: HK$107M ON PAR (2% *) O(L): HK$(13M) • Continue to optimise local tofu business for profitability, while export business seeing improving momentum • Lower beverage sales as we prepare moving to a new beverage distributor to accelerate growth *Excluding COVID related government su
Slide 26: Philippines
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Slide 27: Vitasoy Scaling Up in the Philippines
VITASOY SCALING UP IN THE PHILIPPINES • Encouraging growth in both single-serve and multi-serve segments • Gaining market share and brand presence in the plant milk segment • Continue to drive trial and enhance presence 27
Slide 28: Nurturing the World through the Power of Plants
Nurturing the World through the Power of Plants
Slide 29: Our 10th Sustainability Report
OUR 10TH SUSTAINABILITY REPORT 29
Slide 30: Our Sustainability Framework
OUR SUSTAINABILITY FRAMEWORK 30
Slide 31: Sustainability Framework – Progress and Targets
SUSTAINABILITY FRAMEWORK – PROGRESS and TARGETS Making the Right Products Making Products the Right Way 2023/24 2025/26 2023/24 2025/26 Product Portfolio Results Target Manufacturing Results Target Plant-based products Reduce water used to manufacture each unit 91% ≥92% -23.93% -25% *include tofu an
Slide 32: Climate & Disclosures
CLIMATE & DISCLOSURES • Our Sustainability Reports now includes a standalone TCFD report: • Reaffirmed governance commitment on managing climate risks • Updated carbon emission inventory; • Latest initiatives on climate risk assessment and management, as well as carbon reduction; • Started incorpora
Slide 33: Community Contribution Programme
COMMUNITY CONTRIBUTION PROGRAMME • Benefiting about 6,500 underprivileged students from 47 schools in Mainland China • Distributed over 3 million packs of products to students in rural areas • Collaborated with the Chinese Centre for Disease Control and Prevention, providing nutrition education and
Slide 34: Progress on ESG Ratings
PROGRESS ON ESG RATINGS • Score (0 - 100) [Higher = Better] 56.7 (A) 61.3 (A) 64.8 (A+) 72.8 (AA-) 73.4 (AA-) 74.7 (AA) 74.1 (AA) • Ranking (among 2000+ HK main board listed (2017) (2018) (2019) (2020) (2021) (2022) (2023) companies) Ranking Percentile [Higher = Better] 25 69 85 86 93 93 Not include
Slide 35: In Summary
IN SUMMARY • Significant improvement achieved on driving structural profitability • Confident in increasing revenue and profit growth in Mainland China and for Group level • Mainland China to drive diligent execution of core assets and innovation • Hong Kong Operation to sustain single digit growth
Slide 36: Q&A
Q&A
Vitasoy International Holdings — FY2023/24 Earnings Presentation on 6ix