2020 Annual Results

 Net profit surged by 64.7% to HK$1,874 million

Focus on innovation and premiumization,

strong underlying performance

(27 January 2021 – Hong Kong) Vinda International Holdings Limited(stock code: 3331) announced today its annual results for the year ended 31 December 2020.

2020 Annual Results Highlights:

   Net profit grew significantly by 64.7% to HK$1,874 million (2019: HK$1,138 million). Basic earnings per share rose by 64.2% to 156.5 HK cents (2019: 95.3 HK cents)

   Operating profit surged by 56.3% to HK$2,453 million while the operating margin was up by 5.1 percentage points (“ppts”) to 14.9%

   Gross profit increased by 24.8% to HK$6,223 million, with the gross margin increasing by 6.7 ppts to 37.7%

   Proposed final dividend per share increased 76.2% to 37 HK cents (2019: 21 HK cents). Together with the interim dividend, total dividend per share for the year increased 67.9% to 47 HK cents (2019: 28 HK cents)

   Net gearing ratio¹ dropped by 5.1 ppts to 35.9% (2019: 41.0%)

    • Strong performance in all regions despite challenging environment, total revenue increased by 3.7% to 16,512 million at constant exchange rate

    • Strong Q4 performance with organic growth² in revenue achieving 12.7%

    • Continued increasing contribution from premium tissue portfolio

    • Good underlying momentum in personal care business

    • Absolute leading market position on e-commerce channels

   Tissue Segment:

    • Revenue increased by 2.7% to HK$13,608 million, representing a growth of 3.6% at a constant exchange rate and accounted for 82% of the Group’s total revenue

    • Growing momentum of premium portfolio continued, which helped the Group maintain a leading market position³ in the mainland China tissue segment

   Personal Care Segment:

    • Revenue increased by 3.0% to HK$2,904 million, representing a growth of 4.3% at a constant exchange rate, accounting for 18% of the Group’s total revenue

    • Strong growth momentum in the incontinence care business and feminine care products across mainland China

- Cont’d -

   Inclusion as a constituent stock on a host of leading bourses to further expand the Group’s shareholder base and enhance the share liquidity:

    • MSCI Global Standard Indexes

    • MSCI China All Shares Index

    • Hang Seng Composite Index

    • Hang Seng Stock Connect Greater Bay Area Composite Index

   Continue to promote sustainable development and pursue social responsibility:

    • The first company in Asia to receive a loan from Standard Chartered Bank to help overcome the challenges of COVID-19 pandemic

    • The first fast-moving consumer goods (“FMCG”) company in Hong Kong to obtain the “Green Finance Pre-Issuance Stage Certificate” issued by the Hong Kong Quality Assurance Agency (HKQAA)

    • Awarded the “Outstanding Award for Green Loan Issuer — Largest Single Green Loan (FMCG Industry)” at the Hong Kong Sustainable Finance Awards 2020 organized by the HKQAA

    • Received the Gold Award in "The Asset ESG Corporate Awards 2020" organized by the internationally renowned financial magazine The Asset

Ms. Karen Li, Chief Executive Officer of Vindasaid, “2020 was an extraordinary year for the global enterprise and Vinda. Despite the overall unprecedented economic turmoil and extremely fierce market competition, Vinda achieved outstanding results this year through premiumization and innovation strategy. Driven by an enhanced product mix, sustained low prices for wood pulp, and strong growth in our e-commerce business, the Group has been able to substantially increase its profitability." 

Ms. Li concluded, “Looking ahead, the Group will continue to focus on implementing the premiumization strategy while promoting innovation and expanding market share. Heightened hygiene awareness due to the pandemic has stimulated public demand for hygiene products. At the same time, we expect to see a growing trend of seeking premium products mix driven by rising customer demands. In addition, we see tremendous opportunities in the elderly market in mainland China while the silver economy drives the incontinence care business expansion. The increasing female purchasing power across mainland China in recent years has sparked the launch of premium feminine care products there. Furthermore, pandemic has also changed consumption patterns and habits, highlighting the rising importance of e-commerce channels. In response, the Group capitalizes on the leading advantages in e-commerce platforms to promote our business development. 2021 will usher in the beginning of a new decade, we will continue to break new ground through innovation in order to seize opportunities in the future. The Group will forge ahead with its new five-year plan and work diligently towards the goal of becoming a leading hygiene company in Asia.”

- End -

Remarks 1: Net gearing ratio: Net debt divided by total shareholders’equity

               2: Organic growth: Year-on-year growth at a constant exchange rate

               3: Source: Kantar Worldpanel, sales value year-to-date at 4 December 2020