Revenue + 24.3% to HK$12.1 billion

EBITDA + 37.6% to HK$1.7 billion

Net profit doubled to HK$654 million

Proposed final dividend per share +140% to 12 HK cents

(26 January 2017 – Hong Kong) Vinda International Holdings Limited (stock code: 3331) announced today its annual results for the year ended 31 December 2016.

2016 Annual Results Highlights:

–        Strong revenue growth

·    Total revenue grew by 24.3% to HK$12.1 billion, representing a 13.7% of organic growth1

–        E-commerce maintained No. 1 market position

·    Sales of e-commerce continued to grow well, accounting for 18% of the total sales

–        Net profit doubled and margins expanded 

·    Gross profit increased by 29.0% to HK$3.8 billion. Benefited from a lower wood pulp cost, active portfolio optimisation and higher fixed cost coverage, the overall gross profit margin expanded by 1.2 percentage points to 31.7%

·    EBITDA up by 37.6% to HK$1.7 billion and EBITDA margin expanded by 1.4 percentage points to 14.0%

·    Operating profit grew by 33.9% to HK$1.0 billion and operating margin increased by 0.6 percentage points to 8.4%

·    Net profit rose by 107.8% to HK$654 million and net profit margin up 2.2 percentage points to 5.4%

–        Increase of proposed final dividend

·    Proposed final dividend up by 140% to 12.0 HK cents per share (2015: 5.0 HK cents)

·    Together with the interim dividend, total dividend for 2016 would be 17.0 HK cents per share (2015: 10.0 HK cents)

1 exclude exchange rate and acquisition effects

–        Larger sales contribution from Personal Care segment

·    Revenue from Tissue segment was HK$10.0 billion, accounting 83% of the total sales

·    Revenue from Personal Care segment was HK$2.0 billion, accounting for 17% of the total sales (2015: 3%). The increased proportion primarily came from the new income stream from SCA Asia business since 2016Q2

–        Strong cash flow and lower gearing level

·    Achieved strong cash flow through the good operating results, careful working capital management and tightly managed level of capital expenditure 

·    Net gearing ratio reduced to 59% (2015: 88%)

–        Foreign exchange losses reduced substantially

·    Total foreign exchange losses reduced substantially to HK$45 million (2015: HK$309 million),  due to the increased proportion of Renminbi borrowings

Mr. Christoph Michalski, CEO said, “2016 was a difficult year with a slowing macro-economic development in key Asian markets, the ongoing devaluation of the RMB and a continued softening in the physical off-line retail sector. Despite all these challenges, Vinda has delivered a solid top-line growth, broadened its profitability and improved the working capital. The e-commerce channel has again performed well and maintained the No.1 market position. These positive results were primarily driven by our consistent brand building, innovation, trading up through an enhanced product mix, a relentless quality focus and a continuous improvement in operational efficiency.

Down the road, we will continue the development with four priorities: (1) drive Tissue business in China, (2) broaden Personal Care presence in China, (3) drive the growth of Personal Care business in Asia and roll out Tissue business to the region, and (4) build up B2B business.”

Mr. Li Chao Wang, Chairman said, “We embarked on our new Five-Year journey in 2016. Our ambition is clear, that is to become a leading hygiene company in Asia by securing the forefront position in the tissue market and speeding up the expansion of our personal care business.

The year 2017 marks the 10th anniversary of our listing, a milestone that marks our transformation over the past decade, into the truly international and multi-category hygiene company that we are today. We, as always, will work in concert relentlessly to ensure Vinda grow and bring sustainable returns as we move forward.”