Vitasoy profits up despite US divestiture

Hong Kong food and beverage maker, Vitasoy International Holdings Limited, said the recent divestiture of the North American Mainstream and San Sui business has resulted in a decrease of 3% in revenue to HK$3 billion, while profit attributable to equity shareholders of the company grew by 48% to HK$460 million.Excluding the impact of the divestiture, the company reported a year-on-year increase of 3% in its revenue and 15% in profit attributable to equity shareholders of the company. Gross profit increased 1%, with gross profit margin further improved to 53%, said Vitasoy.China has become the company's biggest market, the report said. The operation's revenue and operating profit both grew by 7% to HK$1.6 billion and HK$282 million respectively and by 13% in local currency terms. The profit growth was boosted by improved manufacturing efficiencies and optimal capacity utilisation.In comparison, the Hong Kong business experienced operational challenges in the first quarter due to machinery issues, but the challenges were said to have been resolved in the second quarter. Vitasoy Hong Kong reported a 3% increase in revenue (after re-clustering the North American business) but a drop of 3% in operating profit.Regarding the market outlook,Winston Yau -lai Lo, executive chairman of the Vitasoy Group, said the company remains confident about their business growth outlook for the remainder of the financial year. "We will continue to work towards achieving sustainable growth through scaling up the business, growing market shares in core markets and categories as well as strengthening our capabilities and operational capacity."