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Strong Performance Despite Challenging Business Environment in China

Revenue up by 19.5% to HK$5.7 billion 

Gross profit up by 18.4% to HK$1.8 billion

 

(19 July 2016 – Hong Kong) Vinda International Holdings Limited (stock code: 3331) announced today its interim results for the six months ended 30 June 2016.


– The acquired SCA Asia business was successfully integrated from 1 April 2016

– Continued strong revenue growth

· Total revenue up by 19.5% to HK$5.7 billion with organic growth of 14.5%

· Revenue from Tissue business amounted to HK$4,923 million with organic growth of 14%

· Revenue from Personal Care business was HK$743 million with organic growth of 22%, accounting for 13% of the Group’s total revenue (Second quarter of 2016: 21% of total revenue)

· E-commerce maintained a high growth momentum in revenue, accounting for 17% of total sales

 

– Increasing gross margin trend due to better product mix, manufacturing efficiency gains and a lower pulp price

· Sales of Tempo, softpack, box tissue and wet wipes all grew strongly, improving the product mix

· Gross margin of the Group was 31.9% in Q2 2016, up by 1.3 percentage points quarter on quarter

 

– Sustainable growth in EBITDA and healthy underlying operating profit margin 

· EBITDA up by 18% to HK$831 million

· EBITDA margin sustained at 14.7%, reflecting a stable cash generation from business

· Underlying operating profit margin stood at healthy level of 9.6%

 

– Foreign exchange losses reduced substantially

· Total foreign exchange losses reduced substantially to HK$15 million despite further depreciation of the Renminbi in the first half of 2016

 

– Production capacity

· Tissue: As of 30 June 2016, Vinda reached 950,000 tons of annual designed production capacity for Tissue business in mainland China. It expects to add another 90,000 tons in the second half of 2016,  bringing the annual designed paper production capacity to 1,040,000 tons by the end of 2016

· Personal Care: Through the acquisition, Vinda is now also equipped with three additional production bases (two in Malaysia and one in Taiwan)

 

– Dividend payout

· Proposed interim dividend is 5.0 HK cents per share (2015 interim dividend: 5.0 HK cents)


Mr. Christoph Michalski, CEO said, “Despite the challenging business environment in China, Vinda has delivered strong performance in the first half of 2016. Looking ahead, Vinda will continue with its ambition of becoming a leading hygiene company in Asia by following three priorities: (1) driving Tissue business in China, (2) broadening Personal Care presence in China, and (3) driving Personal Care growth and rolling out tissue.”


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