2017 Annual Results Highlights

 Revenue up 12% to HK$13.5 billion

Revenue from Personal Care grew by 27% and reached HK$2.6 billion

Continuous strong growth in e-commerce

Dividend payout ratio increased to 36.1%


(26 January 2018 – Hong Kong) Vinda International Holdings Limited (stock code: 3331) announced today its audited annual results for the year ended 31 December 2017.


2017 Annual Results Highlights:


–       Solid revenue growth despite challenging operating environment

·    Total revenue grew by 11.9% to HK$13.5 billion, representing 8.5% of organic growth

·    Full year revenue organic growth1 in mainland China was 11.0%


–        Strong EBITDA margin

·    EBITDA grew by 7.1% and EBITDA margin stood at 13.4%, reflecting strong cash generation from our business


–       Decrease in total SG&A expense ratio

·    Effective management and strict cost control lowered the total selling, general and administrative expenses (“SG&A”) ratio by 0.4 percentage point to 22.8%


–        Optimised Tissue product portfolio and launched high-margin premium products

·    Revenue from Tissue segment was HK$10.9 billion

·    Notable sales growth in softpack, kitchen towels and wet wipes

·    Launched Vinda Deluxe 4D-DécoTM and tapped into South East Asia premium tissue market by rolling out Vinda Deluxe series in Malaysia and Singapore


        Encouraging growth in Personal Care in mainland China

·    Revenue from Personal Care segment reached HK$2.6 billion, accounting for 19% of the Group’s total revenue (2016: 17%)

·    Both incontinence and feminine business in mainland China delivered double-digit organic growth in revenue


        Continuous strong growth in e-commerce

·    Revenue growth from e-commerce stood out among various sales channels, accounting for 21% of the Group’s total revenue (2016: 18%)


        Decrease in gearing level and foreign exchange losses

·    Net gearing ratio2 was 54% (2016: 59%)

·    Total foreign exchange losses decreased to HK$27.4 million (2016: HK$45.4 million)

        Healthy growth in production capacity

·    Annual designed production capacity for tissue paper reached 1,100,000 tons as at 31 December 2017

·    180,000 tons of new capacity will be added in the second half of 2018, thereby bringing the total to 1,280,000 tons by the end of 2018

        Increase dividend payout ratio

·    Net profit recorded HK$621 million

·    Proposed final dividend is 14 HK cents per share; total dividend for 2017 would be 19 HK cents

·    Dividend payout ratio increased 7.7 percentage point to 36.1%

Mr. Christoph Michalski, CEOsaid, “2017 was challenging but we managed to grow our sales and stayed ahead of our peers in terms of market share. We launched high-margin embossed tissue series, introduced effective marketing campaigns, increased penetration of personal care products, sustained our competitive advantage in e-commerce, and strengthened our innovation capability. We also tapped into South East Asia premium tissue market.  


In the medium to long run, we see enormous opportunities for Vinda’s tissue and high-end personal care brands. In order to capture the growth under the competitive and challenging environment, our focuses for 2018 will be on product portfolio enhancement, active cost saving, innovation, product pricing management, and operational efficiency improvement.”


Mr. Li Chao Wang, Chairmansaid, “2017 marked the tenth anniversary of Vinda’s listing on Hong Kong’s stock market, where we have achieved exponential growth in both the scale of business and financial results for the past decade. Looking ahead, Vinda will grasp even more opportunities and move forward to become a leading hygiene company in Asia.”


Since 1 April 2016, the completion date of the acquisition of SCA Asia business in Malaysia, Taiwan and Korea by the Group, the financial figures of business of SCA Asia have been consolidated into the financial results of the Group. Therefore, with respect to the calculation of the organic revenue growth, the data recorded between January and March excluded the acquired Asia business in Malaysia, Taiwan and Korea, as well as the exchange rate effects; whereas for the calculation of the organic revenue growth between April and December, only the exchange rate effects were excluded.


Net gearing ratio: Total borrowings less bank balances and cash and restricted deposits divided by total shareholders’ equity.