Vitasoy International Holdings Limited · HKEX:345
Vitasoy International — H1 FY2023/24 Earnings Presentation
26 slides from Vitasoy International's earnings presentation, Nov 21, 2023
Slide 1: Interim Results FY2023/24
Interim Results FY2023/24 21 Nov 2023
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: Financial Performance
FINANCIAL PERFORMANCE Net of currency impact and COVID-19 related government HKD’ million 1H 2023/24 YoY subsidies Revenue 3,391 -7% -3% Gross profit 1,712 -1% +3% GP% 50.5% +2.8ppt +2.9ppt Profit from operations 171 -19% +15% EBITDA 422 -11% +5% Profit to shareholders 163 +15% +99% 4
Slide 5: Basic Earnings Per Share
BASIC EARNINGS PER SHARE HKD cent 16 HKD15.2 cents 15 15 14 Increased 14% 14 HKD13.3 cents 13 13 12 1H 2022/23 1H 2023/24 5
Slide 6: Capital Expenditure
CAPITAL EXPENDITURE HKD million 80 HKD 77M 70 60 The reduction was mainly due to CAPEX normalization after 50 production line upgrade in 40 HKD 35M previous year 30 20 10 0 1H 22/23 1H 23/24 6
Slide 7: Financial Position
FINANCIAL POSITION Cash Bank Borrowings HKD million HKD million 800 600 HKD 710M HKD 525M 700 500 600 HKD 555M 500 400 400 300 HKD 237M 300 200 200 100 100 Mar 23 Sep 23 Mar 23 Sep 23 7
Slide 8: Key Ratios
KEY RATIOS March 2023 September 2023 GEARING 25% 18% September 2022 September 2023 ROCE 13% 13% DIVIDEND HK1.3¢/share HK1.4¢/share 8
Slide 9: Business Review & Outlook
BUSINESS REVIEW & OUTLOOK Roberto Guidetti Group CEO
Slide 10: Accelerating Structural Profitability
ACCELERATING STRUCTURAL PROFITABILITY • Net of currency impact and COVID subsidies, OP +15% and Revenues –3% • This reflects our focus to accelerate target structural profitability achievement • China improving performance: - Mainland China main profit driver, OP at 10% of NSV, +47%* - Hong Kong Ope
Slide 11: Outlook for 2nd Half FY2023/24
OUTLOOK FOR 2nd HALF FY2023/24 • We will aim to achieve two objectives: 1) To increase structural profitability on total Fiscal Year basis 2) To restore revenue growth in 2nd half of the Fiscal Year • Mainland China to increase focus on core products and geographies, whilst reducing costs • Hong Kon
Slide 12: Operating Profit by Geography – 1st Half FY2023/24
OPERATING PROFIT BY GEOGRAPHY – 1ST HALF FY 2023/24 Group* China Mainland Hong Kong Australia Singapore Growth % Total Total China Operation & NZ Net of currency Improved +15% +37% +47% +22% In Loss 15% HKD Improved +12% +32% +39% +22% In Loss 13% HKD million 400 301 228 171 153 190 1H 23/24 200 137
Slide 13: Revenue by Geography – 1st Half FY2023/24
REVENUE BY GEOGRAPHY – 1ST HALF FY2023/24 Group China Mainland Hong Kong Australia Singapore Growth % Total Total China Operation & NZ Net of currency -3% -3% -6% +4% -10% +1% HKD -7% -6% -11% +4% -16% +4% 2% Mainland 1H 2023/24 1H 2022/23 China 7% Mainland China 58% 61% HK Operation 33% HK Operatio
Slide 14: China
CHINA
Slide 15: China Total
CHINA TOTAL REVENUE: HK$ 3,083M 6% (3%*) OP : HK$ 301M 5% (37%*) MAINLAND CHINA HONG KONG OPERATION REVENUE: HK$ 1,962M 11% (6%*) REVENUE: HK$1,121M 4% OP : HK$ 190M 36% (47%*) OP: HK$111M 24% (22%*) *Excluding15 COVID related government subsidies last interim period and currency impact 1
Slide 16: Mainland China
MAINLAND CHINA REVENUE: HK$ 1,962M 11% (6%*) OP: HK$190M 36% (47%*) • Focus on accelerating target structural profitability faster, sales affected by high base in Q2 last year amid price increase in Q3 • Core products under both brands VITASOY and VITA performed solidly • Encouraging feedback on
Slide 17: Going Forward
GOING FORWARD • Continue to drive profitability improvement • Focus on core products and geographies • Drive selective innovation in strong markets 17
Slide 18: Hong Kong Operation
HONG KONG OPERATION REVENUE: HK$1,121M 4% OP: HK$111 24% 22%* • Strong momentum from on-the-go consumption behind both core and innovation products • Core products under both brands VITASOY and VITA performing well whilst new platforms provided additional growth • Vitaland school business normali
Slide 19: Australia & New Zealand
AUSTRALIA & NEW ZEALAND
Slide 20: Australia & New Zealand
AUSTRALIA & NEW ZEALAND REVENUE: HK$255M 16% (10%*) O(L): HK$(33M) • Revenue affected by temporary manufacturing and logistic issues • Operating profit affected by high raw material prices, logistic, overhead costs, transition cost and price competitiveness in coffee channel Barista’s • Soy and Oa
Slide 21: Singapore
SINGAPORE
Slide 22: Singapore
SINGAPORE REVENUE: HK$53M 4% (1%*) O(L): HK$(10M) IMPROVED 9% (15%*) • Continued to optimise local tofu business for profitability • Implement cost reduction program to support more competitive and new tofu model while continuing to scale up beverages *Excluding COVID-19 related subsidies last int
Slide 23: Philippines
PHILIPPINES
Slide 24: Vitasoy Scaling Up in the Philippines
VITASOY SCALING UP IN THE PHILIPPINES • Encouraging growth in both single-serve and multi-serve segments • New products Milky Almond and Milky Oat driving additional growth • Gaining market share and brand presence in the plant milk segment 24
Slide 25: In Summary…
IN SUMMARY… • Significant improvement achieved in 1st half on driving to target structural profitability • We will keep this structural profitability focus whilst also restore revenue growth in 2nd half • Mainland China to increase focus on core products and geographies, whilst reducing costs • Hong
Slide 26: Interim Results FY2023/24 Q&A
Interim Results FY2023/24 Q&A 21 Nov 2023
Vitasoy International Holdings — H1 FY2023/24 Earnings Presentation on 6ix