2018 Annual Results

 Revenue up by 10% to HK$14.9 billionNet profit up by 4.6% to HK$649 million*****Increase in total dividend per share for the Yea((31 January 2019 – Hong Kong) Vinda International Holdings Limited (stock code: 3331) announced today its audited annual results for the year ended 31 December 2018.千赢国际娱乐Highlights:–        Double-digit growth in revenue despite challenging environment·    Total revenue grew by 10.3% to HK$14.9 billion·    Revenue of the Tissue segment grew by 11.0% to HK$12.1 billion·    Double-digit revenue growth in softpack, wet wipes and kitchen towe·    Revenue from Personal Care segment up by 7.3% to HK$2.8 billion, accounting for 19% of the Group’s total revenue·    Basic earnings per share rose by 3.4% to 54.4 HK cents–        Thanks to effective price increase initiatives, enhanced product mix and solid cost-saving efforts ·    Gross profit grew by 4.7% to HK$4,187 million.·    Operating profit grew by 3.7% to HK$1,020 million·    Net profit grew by 4.6% to HK$649 million–        Double-digit revenue growth in e-commerce and B2B channels·    E-commerce and B2B continued to record double-digit growth in revenue·    Traditional distributors, key account managed supermarkets and hypermarkets, B2B corporate customers and e-commerce accounted for 34%, 25%, 16% and 25% respectively.–        Decrease in total SG&A expense ratio·    Effective management and strict cost control lowered total selling, general and administrative expenses (“SG&A”) ratio by 1.7 ppts over last year        Gearing level maintained·    Net gearing ratio1stood at 54%        Efficient production capacity plan·    60,000 tons of new capacity will be added Hubei in 19Q2·    The annual designed production capacity for tissue paper  is expected to be 1,250,000 tons by the end of 2019         Increase in dividend·    Proposed final dividend is 14 HK cents per share; total dividend for 2018 would be 20 HK cents (2017: 19 HK cents)Mr. Christoph Michalski, CEOsaid, “ We will focus on the following plans to secure the sales growth and recovery of profit margins: 1) we will always put innovation in place to differentiate ourselves from competitors instead of joining the price competition;  2) we will continue to enhance our product portfolio in a bid to broaden margin profile; 3) we will be cautious on every dollar spent on all functions, projects and business units; 4) we will keep up our high efficiency of production and operation; 5) we will maintain a healthy financial position, improve the management of working capital and cash generating ability, and; 6) we will deliver this in a sustainable and mindful way as well as respecting our code of conduct.”Mr. Li Chao Wang, Chairmansaid, “We believe that government-led stimulus such as tax cut and other structural changes of the Chinese economy are beneficial to domestic consumption. In medium-to-long run, we see a lot of positive catalysts that will also benefit the market growth as well as our business development, such as quality-driven type of consumption, per capital increase in usage, evolution of new-retail and more stringent regulated environment rules etc.”
  1. Net gearing ratio: Total borrowings less bank balances and cash and restricted deposits divided by total shareholders’ equity