02.01.16
Vinda International Holdings Limited reported the group’s total revenue in 2015 increased by 21.4% to HK$9.7 billion ($1.2 billion). Revenue of the Tissue business increased by 18.9% to HK$9.4 billion ($1.1 billion), with sales volume up by 19.6% to 657,000 tons. By product categories, roll and non-roll products respectively accounted for 50% and 50% of the total sales. Notably, sales of higher-margin products such as softpack, box tissue, hanky and wet wipe grew significantly by 34%, 29%, 35% and 32% respectively. Revenue from the Personal Care business increased by 194% to HK$339 million ($40.2 million). Revenue from e-commerce business increased by 124% to HK$1.2 billion ($142.3 million).
Due to the optimization of tissue product mix and improvement on production efficiency, which were however offset by the rising wood pulp cost, gross profit margin rose by 0.3 percentage points to 30.5%.
If excluding the items affect comparability, the Group’s underlying operating profit and profit before tax would have increased by 8.8% and 6.6% to HK$892 million ($105.8 million) and HK$789 million ($93.6 million), respectively. Underlying operating margin and profit before tax margin would be 9.2% and 8.1% respectively.
As of December 31, 2015, Vinda reached 950,000 tons of annual designed production capacity for tissue paper in China. It expects to add 90,000 tons of production capacity, bringing the annual designed paper production capacity to 1,040,000 tons by the end of the 2016. In addition, it continues to build personal care production facilities in China and further expand in 2016. Together with two production plants in Malaysia and one in Taiwan acquired from SCA, it will have strong production support and create synergies in terms of research and development, purchasing and production costs.
Christoph Michalski, CEO, says, “Our ambition is to become a leading hygiene company in Asia. In order to achieve such ambition, Vinda has strived to deliver strong business performance through three priorities, (1) driving Tissue business in China, (2) broadening Personal Care presence in China, and (3) driving Personal Care growth in Asia and rolling out Tissue business.”
Li Chao Wang, chairman, says, “In the mid- to long-run, the Chinese hygiene products market will continue to present opportunities to the Group. Urbanization, the emergence of e-commerce and internet shopping, the surge in disposable income and rising consumers’ awareness about product quality will boost demand for premium products. The aging population will consistently drive the demand for incontinence care products. Stringent environmental regulations will accelerate market integration. Last but not least, the ‘One Belt, One Road’ initiative will certainly boost the demand for quality lifestyle hygiene products for Chinese and Asian consumers.”
Due to the optimization of tissue product mix and improvement on production efficiency, which were however offset by the rising wood pulp cost, gross profit margin rose by 0.3 percentage points to 30.5%.
If excluding the items affect comparability, the Group’s underlying operating profit and profit before tax would have increased by 8.8% and 6.6% to HK$892 million ($105.8 million) and HK$789 million ($93.6 million), respectively. Underlying operating margin and profit before tax margin would be 9.2% and 8.1% respectively.
As of December 31, 2015, Vinda reached 950,000 tons of annual designed production capacity for tissue paper in China. It expects to add 90,000 tons of production capacity, bringing the annual designed paper production capacity to 1,040,000 tons by the end of the 2016. In addition, it continues to build personal care production facilities in China and further expand in 2016. Together with two production plants in Malaysia and one in Taiwan acquired from SCA, it will have strong production support and create synergies in terms of research and development, purchasing and production costs.
Christoph Michalski, CEO, says, “Our ambition is to become a leading hygiene company in Asia. In order to achieve such ambition, Vinda has strived to deliver strong business performance through three priorities, (1) driving Tissue business in China, (2) broadening Personal Care presence in China, and (3) driving Personal Care growth in Asia and rolling out Tissue business.”
Li Chao Wang, chairman, says, “In the mid- to long-run, the Chinese hygiene products market will continue to present opportunities to the Group. Urbanization, the emergence of e-commerce and internet shopping, the surge in disposable income and rising consumers’ awareness about product quality will boost demand for premium products. The aging population will consistently drive the demand for incontinence care products. Stringent environmental regulations will accelerate market integration. Last but not least, the ‘One Belt, One Road’ initiative will certainly boost the demand for quality lifestyle hygiene products for Chinese and Asian consumers.”