Vinda International 1H 2018 Results: Revenue up 16.3 percent from Year ago

Vinda International Holdings Limited has announced its unaudited interim results for the six months ended June 30, 2018.

2018 Interim results highlights:

•Double-digit growth in revenue and  profits 

oTotal revenue grew by 16.3 percent to HK$7.3 billion, driven by strong sales in all regions

oGross profit rose by 13.1 percent to HK$2.2 billion

oEBITDA grew by 25.1 percent to HK$1.1 billion

oNet profit grew by 30.1 percent to HK$417 million

•Continued optimizing tissue product portfolio and launched new product series 

oRevenue from tissue business amounted to HK$5.9 billion with a growth rate of 16.9 percent, accounting for 81 percent of the Group’s total revenue

oSatisfactory sales growth in softpack, kitchen towel and wet wipes

oTissue portfolio optimised by launching several product series, including Vinda Cotton Care, Vinda Deluxe 4D-DécoTM Color and Tempo Toilet Wipe

•Increased revenue growth in Personal Care segment 

oRevenue from Personal Care Business reached HK$1.4 billion with a growth rate of 13.9 percent, accounting for 19 percent of the Group’s total revenue

oBoth incontinence and feminine business extended its presence on e-commerce platforms

•Production capacity expansion to support growth 

oAnnual designed production capacity for tissue paper reached 1,100,000 tons as at 30 June 2018

oAdding 60,000 tons of capacity in 2018Q3 and adding another 120,000 tons in 2018Q4 /2019Q1, at the latest

Christoph Michalski, CEO, said, "We successfully grew in both sales and margins despite the significant increase in wood pulp cost. We will continue to focus on the following measures to seize growth opportunities and protect our profitability: Firstly, we will differentiate ourselves in all categories through innovation and a value-added portfolio mix. Secondly, we will closely monitor the market dynamics to manage our product price.  

"Thirdly, we will keep up our effort in reducing the cost across all functions and projects. Fourthly, we will continue to strengthen our production and operational efficiency, while keeping our production capacity expansion on track for sustainable growth. Lastly, we will maintain a healthy financial position and good management of cash generation and effective financing."