revenue up by 10% to hk$14.9 billion
net 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.
2018 annual results 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.”
net gearing ratio: total borrowings less bank balances and cash and restricted deposits divided by total shareholders’ equity