Major soy-based drink producer, Vitasoy International Holdings reported a net loss of HK$159 million (US$20.3 million) for the year ended March 2022 mainly due to weaker sales in mainland China. This has led to the company scrapping its dividend payment, the first time in more than 20 years.
This huge loss is a big contrast to HK$548 million (US$70 million) that it recorded in the previous financial year.
According to Ng Ian-Hong, Group Chief Financial Officer of Vitasoy, “The group contacted different suppliers in an attempt to reduce costs including signing contracts to lock the price of raw materials. However, cost controls alone could not help maintain profitability amid rising logistics costs.”
Over the past 6 months, the group had also raised prices in some markets, and it will continue to review these prices from time to time.
Revenue in mainland China dipped 23% to HK$3.84 billion (US$489.2 million) in 2022 from HK$5.01 billion (US$638.2 million) the previous year due to the COVID outbreak.
