Vinda International Holdings Ltd
Vinda International — H1 2012 Earnings Presentation
25 slides from Vinda International's earnings presentation, Aug 11, 2021
Slide 1: Vinda International Holdings Limited
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Slide 2: Disclaimer
Disclaimer Information contained in our presentation is intended solely for your personal reference and is strictly confidential. Such information is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning the company and/or its bus
Slide 3: Agenda
I. Results Highlights II. Financial Highlights III. Business Review IV. Future Outlook V. Q&A 3
Slide 4: Company Representatives
Company Representatives Mr. Li Chao Wang • Chairman Ms. Zhang Dong Fang, Donna • Chief Executive Officer Mr. Tsang Zee Ho, Paul • Chief Financial Officer 4
Slide 5: Key Achievements
Key Achievements ● Achieved impressive growth in both revenue & sales volume. ● Achieved satisfactory gross margin expansion. ● Introduced ground-breaking “Ultra Strong” series. ● Laid a solid foundation for capacity expansion with finance support via share placement. ● V-care successfully set up th
Slide 6: Financial Highlights
I. Results Highlights II. Financial Highlights III. Business Review IV. Future Outlook V. Q&A 6
Slide 7: Financial Performance
Financial Performance For the six months ended 30 June (HK$ million) 2012 2011 Change Revenue 2,887.5 2,194.6 31.6% Cost of sales (1,984.4) (1,587.3) 25.0% Gross profit 903.0 607.3 48.7% Operating profit 381.5 248.0 53.8% EBITDA 477.7 322.4 48.2% Profit before income tax 350.8 252.1 39.1% Profit att
Slide 8: Strong Growth Across All Products
Strong Growth Across All Products For the six months ended 30 June (HK$ million) 2012 2011 Change Toilet roll 1,768.2 1,344.0 31.6% Handkerchief tissue 305.2 231.7 31.7% Box tissue 136.1 138.6 1.8% Softpack 442.0 242.6 82.2% Paper napkin 93.7 84.6 10.8% Others 142.3 153.1 7.0% Product Mix % of Sales
Slide 9: Diversification of Distribution Channels
Diversification of Distribution Channels Revenue by Distribution Channels 1H2012 1H2011 15.5% 15.2% 37.6% 34.2% 46.9% 50.6% Traditional channels Modern channels B2B (i.e. Distributors) (i.e. Hypermarkets, Supermarkets) (i.e. Corporate clients) ● Rapidly expanding to highly efficient modern channel w
Slide 10: Cost of Sales Overview
Cost of Sales Overview As a % of sales For the six months ended 30 June (HK$ million) 2012 2011 Change Pulp 40.4% 46.4% 6.0 p.p. ● Wood pulp prices eased Packaging 10.2% 9.1% 1.1 p.p. yoy as a result of weakening demand in Chemicals 1.0% 1.0% Unchanged Europe and the United Water & electricity 8.3%
Slide 11: Gross Margin Overview
Gross Margin Overview For the six months ended 30 June 2012 2011 Change Toilet roll 30.3% 26.6% 3.7 p.p. Handkerchief tissue 34.9% 32.8% 2.1 p.p. Box tissue 35.2% 30.5% 4.7 p.p. Softpack 33.5% 29.8% 3.7 p.p. Paper napkin 26.3% 22.9% 3.4 p.p. Others 28.5% 26.2% 2.3 p.p. OVERALL 31.3% 27.7% 3.6 p.p. ●
Slide 12: Operating Expenditure
Operating Expenditure Operating Expenditure as % of Sales Effective Tax Rate 5.7% 5.3% 12.4% 26.4% 11.6% 24.2% 1H2011 1H2012 1H2011 1H2012 Administrative expenses Selling & marketing expenses ● Administrative expenses as a % of sales was 5.7%. ● Effective tax rate was 26.4%: ● Certain financial expe
Slide 13: Working Capital Management
Working Capital Management Receivable Turnover Days Payable Turnover Days Finished Goods Turnover Days 67 60 45 47 37 33 1H2011 1H2012 1H2011 1H2012 1H2011 1H2012 ● The Group maintained good working capital management during the period under review. As a result, receivable turnover days, payable tur
Slide 14: Key Leverage Indicators
Key Leverage Indicators 2012 2011 (HK$ million) As at 30 Jun As at 31 Dec Short-term debt 1,171.7 801.1 Long-term debt 994.2 1,151.3 Total debt 2,165.9 1,952.4 Cash and cash equivalents 1,335.8 714.6 Net gearing ratio* (%) 21.5 39.4 EBIT/interest (times) 12.3 11.4 ● Solid financial resources for cap
Slide 15: Business Review
I. Results Highlights II. Financial Highlights III. Business Review IV. Future Outlook V. Q&A 15
Slide 16: Production Capacity
Production Capacity (year) Target: 620 60 120 80 140 30 45 90 55 2012 Total: 470 60 120 100 30 45 90 25 2011 0 100 200 300 400 500 600 700 (‘000 ton) Guangdong Jiangmen Sanjiang Hubei Beijing Sichuan Zhejiang Liaoning ● As of June 30 2012, the Group ran a total production capacity of 470,000 tons wi
Slide 17: FY2012 Geographical Coverage
FY2012 Geographical Coverage Manufacturing Bases Northern China Distribution Outlets Beijing Northeast China 30,000 tons Liaoning (Anshan) Western 55,000 tons China Sichuan (Deyang) Eastern China 45,000 tons Shandong (Laiwu) In the pipeline Southern China Guangdong Eastern China (Sanjiang, Jiangmen)
Slide 18: Sales & Marketing Strategy
Sales & Marketing Strategy ● As at 30 June 2012, Vinda has 176 sales offices (31 December 2011: 155) and 1,295 distributors (31 December 2011: 1,174). ● Launched “Ultra Strong” series featuring 3-ply box tissue & softpack with a full array of marketing support including TVC & TV game show title spon
Slide 19: Personal Care Business
Personal Care Business ● Successfully set up 3 production lines and a quality inspection center at Xiaogan plant in Central China. ● Developed over 40 new SKUs for “Babifit”. ● Additional effort will be devoted to distribute “Babifit” products through distributors and hypermarkets. 19
Slide 20: Improved Operational Efficiency & Green Management
Improved Operational Efficiency & Green Management ● Remain committed to the ● Effectively cut emissions of ● Obtained 14 new patents; central government’s sulfur dioxide with 5 software patents and 1 carbon reduction policy and advanced filters, and innovation patent with collaborated only with raw
Slide 21: Future Outlook
I. Results Highlights II. Financial Highlights III. Business Review IV. Future Outlook V. Q&A 21
Slide 22: Outlook of Operating Environment
Outlook of Operating Environment Economic Environment China’s economic growth will continue to slow down amidst global uncertainties. China’s household paper market will maintain stable growth as urbanization and income per capita continues to rise. RMB appreciation will be relatively flat. In
Slide 23: Strategies in response to Wood Pulp Prices
Strategies in response to Wood Pulp Prices ● Align longstanding suppliers to Vinda’s development roadmap, creating common goals to strengthen alliances, while exploring new alliances. ● Constantly keep track of market situation & employ a flexible and proactive procurement strategy. ● Closely monito
Slide 24: Future Strategies
Future Strategies Strengthen the “Vinda” brand and sales network while optimizing product portfolio. Foster personal care Adhere to products business. environmental Develop “Babifit” SKUS principles and perfect plus dedicated sales environmental channels. protection projects. Reach new goal of 1 6th
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Vinda International Holdings — H1 2012 Earnings Presentation on 6ix