New | Vitasoy says net profit up 22pc on strong growth in China, Hong Kong

Vitasoy International, the largest Hong Kong beverage maker, reported a 22 per cent growth in net profit to HK$222 million for the six months ended September 30, boosted by strong growth in China and in Hong Kong.

“We will keep on expanding the operational capabilities of our production bases in mainland China,” Vitasoy said in a filing to the Hong Kong stock exchange on Wednesday. Strong growth is expected for the business in China, where Vitasoy registered 35 per cent growth in the first half of the fiscal year.

Half year turnover reached HK$2.7 billion, up 17 per cent. Vitasoy announced a dividend of 3.2 HK Cents per share. Vitasoy continued to invest in the business and have embarked on a second wave of investment to expand production capacity, according to the company.

It will continue its execution and distribution expansion to consolidate its leadership position in the Hong Kong Soy and Tea business segments but labour shortages and wage increases are concerns for the local operation. The company reported a 11 per cent revenue growth in the home market for the six months.

The mainland has become the biggest market during the six months ahead of Hong Kong, according to the company.

“To secure manufacturing support to growth, we have entered into a Memorandum of Understanding with the local government on the construction of our fourth Mainland China plant in Wuhan in September 2014,” according to Vitasoy’s filing.