Personal Care Products maker Vinda International Holdings Limited (stock code: 3331) said revenue grew by 24.3% to HKD12.1 billion in 2016, representing a 13.7% of organic growth. Gross profit increased by 29.0% to HKD3.8 billion, benefited from a lower wood pulp cost, active portfolio optimisation and higher fixed cost coverage, the overall gross profit margin expanded by 1.2 percentage points to 31.7%.
EBITDA up by 37.6% to HKD1.7 billion and EBITDA margin expanded by 1.4 percentage points to 14.0%, operating profit grew by 33.9% to HK$1.0 billion and operating margin increased by 0.6 percentage points to 8.4%. Net profit rose by 107.8% to HKD654 million and net profit margin up 2.2 percentage points to 5.4%, the company said, adding sales of e-commerce continued to grow well, accounting for 18% of the total sales. The company proposed final dividend of 12.0 HK cents per share (2015: 5.0 HK cents), up by 140% from a year earlier, the company said, adding together with the interim dividend, total dividend for 2016 would be 17.0 HK cents per share (2015: 10.0 HK cents)
Revenue from Tissue segment was HKD10.0 billion, accounting 83% of the total sales. Revenue from Personal Care segment was HK$2.0 billion, accounting for 17% of the total sales (2015: 3%). The increased proportion primarily came from the new income stream from SCA Asia business since 2016Q2. Total foreign exchange losses reduced substantially to HKD45 million (2015: HKD309 million), due to the increased proportion of Renminbi borrowings. Net gearing ratio reduced to 59% (2015: 88%)
Mr. Christoph Michalski, CEO said, “2016 was a difficult year with a slowing macro-economic development in key Asian markets, the ongoing devaluation of the RMB and a continued softening in the physical off-line retail sector. Despite all these challenges,Vinda has delivered a solid top-line growth, broadened its profitability and improved the working capital. The e-commerce channel has again performed well and maintained the No.1 market position. These positive results were primarily driven by our consistent brand building, innovation, trading up through an enhanced product mix, a relentless quality focus and a continuous improvement in operational efficiency.
Down the road, we will continue the development with four priorities: (1) drive Tissue business in China, (2) broaden Personal Care presence in China, (3) drive the growth of Personal Care business in Asia and roll out Tissue business to the region, and (4) build up B2B business.”
Mr. Li Chao Wang, Chairman said, “We embarked on our new Five-Year journey in 2016. Our ambition is clear, that is to become a leading hygiene company in Asia by securing the forefront position in the tissue market and speeding up the expansion of our personal care business.
The year 2017 marks the 10th anniversary of our listing, a milestone that marks our transformation over the past decade, into the truly international and multi-category hygiene company that we are today. We, as always, will work in concert relentlessly to ensureVinda grow and bring sustainable returns as we move forward.”