2021 Annual Results

 Total Revenue Increased 13.1% to HK$18,676 million

Focusing on Premium Products to Enhance Brand Competitiveness

(26 January 2022 – Hong Kong) Vinda International Holdings Limited(stock code: 3331) announced today its annual results for the twelve months ended 31 December 2021 (the “Year”).

Annual Results Highlights:

   Total revenue increased by 13.1% to HK$18,676 million (2020: HK$16,512 million)

   Gross profit rose by 6.0% to HK$6,596 million, with a corresponding gross margin of 35.3%

   Net profit was HK$1,638 million and net margin was 8.8%

   Basic earnings per share was 136.5 HK cents (2020: 156.5 HK cents)

   Proposed final dividend per share increased by 8.11% to 40 HK cents (2020: 37 HK cents). Together with the interim dividend, total dividend per share for the Year increased by 6.38% to 50 HK cents (2020: 47 HK cents)

   The net gearing ratio¹ declined by 5.4 ppts to 30.5% (2020: 35.9%)

    • Robust revenue growth despite complex and volatile market environment, total revenue increased 7.0% at constant exchange rates

    • Strong organic growth² of 8.7% compared to 2020 in mainland China

    • Continuous tissue portfolio mix enhancement

    • Continuous strong momentum in personal care business in both mainland China and overseas markets

    • E-commerce channel continues to grow in all business regions

   Tissue Segment:

    • Revenue increased by 13.9% to HK$15,501 million, with a growth of 7.2% at constant exchange rates, representing 83% of the Group’s total revenue

    • The Group continues to sustain the leading position³ in mainland China with increasing contributions from its premium product portfolio

   Personal Care Segment:

    • Revenue increased by 9.3% to HK$3,175 million, with a growth of 6.2% at constant exchange rates, represented 17% of the Group’s total revenue

    • Incontinence care and feminine care products continue to gain popularity from consumers and maintain growth momentum

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   Proactive implementation of ESG strategy and fulfilling social corporate responsibility:

   • MSCI upgraded the Group’s ESG rating from “BBB” to “A”, which is the highest ESG rating in China’s tissue industry

   • The first FMCG company in Hong Kong being granted a sustainability linked loan

   • Hong Kong Quality Assurance Agency’s “Outstanding Award for Green and Sustainable Loan Issuer” and “Leadership Award for Green and Sustainable Financial Development”

   • Hong Kong Management Association’s 2021 “Excellence in ESG Reporting Award”

   • Bloomberg Businessweek’s “ESG Leading Enterprise Awards” and “Leading ESG Initiative Awards”

   • Bloomberg Businessweek’s “ESG Leading Enterprise Awards” and “Leading ESG Initiative Awards”

Ms. Karen Li, Chief Executive Officer of Vindasaid, “Economic recovery remained erratic driven by the evolving global pandemic. Despite a challenging environment, Vinda overcame the year’s difficulties by leveraging the strength of our leading brands, while focusing on premiumization and innovation strategies to enable continued market penetration and sales growth.” 

“Looking ahead, by staying close to changing market needs and consumer insights, the Group will continue with category expansion and product portfolio optimization and premiumization strategies, as well as the implementation of impactful branding, marketing executions and sales channel diversification, to further enhance brand competitiveness and market share. Stepping into the post-pandemic era, we will continue to capture opportunities from e-commerce platforms, and strengthen market penetration both online and offline to achieve strong sales performance. In 2022, we will continue to strive for innovation, seize market opportunities, and consolidate our leading market position to further our goal of becoming the leading hygiene company in Asia.”

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   1:Net gearing ratio: Net debt divided by total shareholder’s equity

   2:Organic growth: Year-on-year growth at constant exchange rates

   3:Source: Kantar Worldpanel, sales value year-to-date at 31 December 2021