Vinda is a leading hygiene company in Asia, with core business segments including tissue,
incontinence care, feminine care, baby care and professional hygiene solution under key
brands Vinda, Tempo, Tork, TENA, Dr. P, Libresse, Libero and Drypers.
Revenue growth in 2Q slows down, 1H profit margins still under pressure
In 1HFY2023, total revenue of Vinda amounted to HK$10,070 million, representing an
increase of 10.1% organically and of 4.0% (presented in Hong Kong Dollar). 1Q and 2Q
revenues were HK$4,969 million and HK$5,101 million, a year-on-year increase of 15.5% and
5.5% respectively. 1H Net profit declined by 81.1% to HK$121 million. The net profit margin
narrowed by 5.4 ppts to 1.2%. Basic EPS was 10.0 HK cents (1HFY2022: 53.0 HK cents), and
an interim dividend of 10.0 HK cents (1HFY2022: 10.0 HK cents) per share.
Despite the gradual reduction of the pulp prices since the end of 2022, costs in the first half
of the year were still impacted by the inventories with relatively high price, and on gross
margin, which decreased by 6.9 ppts year-on-year to 25.1%. Gross profit was down by 18.5%
to HK$2,527 million. EBITDA fell by 42.3% to HK$818 million while EBITDA margin was
narrowed by 6.5 ppts to 8.1%. Total foreign exchange loss was HK$0.3 million (H1 2022:
HK$22.4 million loss), of which HK$5.4 million loss came from operating activities (H1 2022:
HK$26.2 million loss), and HK$5.1 million gain was due to financing activities (H1 2022:
HK$3.8 million gain).