by winston » Fri Jan 27, 2017 8:20 am
not vested
Vinda doubles net profit on stronger sales growth
by Koey Yip
Vinda International (3331) doubled its net profit last year due to strong revenue growth and significant reduction of foreign exchange loss.
For the fiscal year ended December 31, the tissue paper manufacturer posted net profit of HK$654 million - up 107.8 percent over the previous year. Earnings per share were 59.8 HK cents, and a final dividend of 12 HK cents was declared.
During the year, total revenues jumped 24.3 percent to HK$12.1 billion, representing 13.7 percent of organic growth.
Both tissue and personal care segments - incontinence and feminine in particular - contributed to the strong organic growth. Revenue from personal care segments soared five times from the previous year to HK$2.03 billion.
The firm attributed the surge in revenue to the new source of income from its SCA Asia business.
Vinda's core business - the tissue segment - recorded a 7.12 percent year- on-year growth to HK$10 billion, accounting for about 83 percent of total sales.
Meanwhile, due to the lower price of wood pulp and the product portfolios, its gross profit jumped 29 percent to HK$3.8 million. And the gross margin also rose 1.2 percentage point to 31.7 percent.
Despite the bright annual results, chief executive Johann Michalski said the market is still full of challenges in 2017, such as slower growth in the mainland economy.
He said product prices won't be markedly adjusted unless the cost of raw materials goes up.
Vinda chairman Li Chao-wang said the company has no interest in engaging in a price war with competitors.
Noting that revenues from the e-commerce platform accounted for 18 percent of total sales. Li said the firm hopes to become the e-commerce leader in the industry to boost consumption, as he is confident about the consumption power of youngsters and the middle class.
Source: The Standard
It's all about "how much you made when you were right" & "how little you lost when you were wrong"