Net profit increased by 64.8% to HK$377 million and
operating profit surged by 55.0% to HK$527 million
for the first quarter of 2020
(23 April 2020 - Hong Kong) Vinda International Holdings Limited(stock code: 3331) announced today its unaudited financial information for the three months ended 31 March 2020 (“2020Q1”).
2020Q1 Results Highlights:
• Significant improvement in profitability, net profit increased by 64.8% to HK$377 million and net profit margin up by 5.4 percentage points compared with the first quarter of 2019.
• Total revenue decreased by 12.4%¹ year-on-year to HK$3,419 million, of which HK$2,706 million was from Tissue segment and HK$713 million was from Personal Care segment. The decline was attributable to the slower growth of China which mainly due to temporary supply shortage of products, while the business outside China still maintained a good momentum.
• Gross profit grew by 19.2% to HK$1,281 million. Gross margin was widened by 11.2 ppts year-on-year to 37.5% which was mainly driven by the low pulp price, and continuous portfolio mix enhancement.
• Operating profit rose significantly by 55.0% to HK$527 million. Operating profit margin up 7.1 ppts year-on-year to 15.4%.
• EBITDA increased notably by 32.1% to HK$811 million. EBITDA margin expanded to 23.7%.
Mr. Christoph Michalski, CEOsaid, “Our strong profitability was attributable to the optimized product mix and soft pulp price, despite the negative impact of novel coronavirus and the suspension of production during the epidemic control period. Looking ahead, Vinda will continue to persist in boosting business growth with appropriate channel mix and endeavour in optimising product portfolio. We are confident about our business outlook and strive to maximise value for the shareholders.”
¹ Year on year growth at a constant exchange rate
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