Major Hong Kong beverage company with strong portfolio of soy-based beverage products, Vitasoy International has reported a massive loss of HK$172 million (US$22 million) for the financial year ended March 2022. This is a major reversal from HK$548.3 million (US$70 million) in profit recorded a year ago.
The company attributed the poor performance to the significant decline in sales in China during the peak summer months and a 91% decrease in government Covid relief and subsidies, as well as substantial non-recurring expenses and impairment costs associated with the relocation of its Shenzhen operation to a modern facility in Dongguan.
Nevertheless, Vitasoy is optimistic of recovery in the next financial year. It plans to achieve its sales target through robust product innovation, advertising, and promotion investments, effective go-to-market execution and sales, as well as enhanced communications with consumers.
Vitasoy said that in addition to a strong comeback in sales in China, all the other operating units – Hong Kong, Australia and New Zealand and Singapore – have delivered revenue growth for the full financial year behind the steady performance of both core businesses and innovation products.