Vinda International 1H 2020 results: Net Profit up 108 percent from Year Ago

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

It featured resilient performance despite the impact of the novel coronavirus pandemic:

Total revenue increased by 0.9 percent (at a constant exchange rate) to HK$7,634 million in the first half of the year
Revenue rose by 14.9 percent (at a constant exchange rate) in the second quarter, in which the strong organic growth of 20.1 percent in mainland China reflected a clear sign of recovery
E-commerce channels recorded a 30 percent organic growth, consolidating its leading position in the e-commerce channels
Feminine care and incontinence care business in mainland China delivered robust performance

Its strong profitability was attributable to the low wood pulp price and continuous portfolio mix enhancement:

Gross profit increased by 32.6 percent to HK$2,941 million and gross margin was up by 10.4 percentage points
Operating profit soared by 99.6 percent to HK$1,257 million while operating margin was widened by 8.5 ppts to 16.5 percent
Net profit grew significantly by 107.5 percent to HK$913 million. Net profit margin expanded by 6.4 ppts to 12 percent.

In the Tissue Segment:

Consumers’ awareness of personal hygiene heightened during the pandemic, contributing to an outstanding performance in our business of premium portfolio
Revenue amounted to HK$6,243 million, representing a growth of 0.3 percent at a constant exchange rate and accounting for 82 percent of the Group’s total revenue

Christoph Michalski, CEO, said, “During the first half of 2020, the operating environment remained challenging due to the novel coronavirus pandemic. However, the Group achieved remarkable revenue growth thanks to the continuous portfolio mix enhancement and low pulp price. Looking ahead to the second half of 2020, as the consumers’ hygiene awareness heightened and the changes in their habits induced by the pandemic, which is beneficial to the upgrade of our household paper and personal care products. We will also leverage on our edge in e-commerce to seize the opportunities in the market and develop our business with focus on product quality and online development in order to maintain sustainable business growth.”

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