Hong Kong-based plant milk brand Vitasoy has posted positive results for the 2022/2023 financial year, after reversing previous losses.
The company recorded a profit from operations of HK$104 million in the year ended March, compared with a loss of HK$213 million in the 2021/2022 fiscal year. This was achieved despite increased costs of fuel and raw materials, mainly due to cost rationalization in mainland China and increased government subsidies in Hong Kong.
Region wise results
Vitasoy continues to lead the Chinese soymilk market, and registered an operating profit of RMB40 million this year, against a loss of RMB280 million in FY2021/2022. However, revenue decreased slightly by 2%.
The company’s Australia and New Zealand operations grew revenue by 3%, with new products such as Caffe Latte Oat Milk and Greek Style Yogurt well received by consumers. Profit from operations fell 89% due to higher overheads, but Vitasoy forecasts a positive outlook in the region due to rapidly growing demand for plant-based products.
In Hong Kong, Vitasoy’s revenue grew by 11%, representing a strong recovery; However, some of this is attributable to government covid-19 subsidies. The company’s Singapore business has been challenged by the commoditization of the local tofu category, with consumers opting for cheaper alternatives and declining export sales to Europe.
Sustainable growth
Founded in 1940, Vitasoy claims to be the world’s first commercial soy milk producer. The company has since branched out to offer more varieties of plant milks like oat and almond, along with other dairy options like yogurt.
“We have improved the Group’s performance with profitability for FY2022/23. We will focus on disciplined execution to deliver sustainable growth and profitability,” said Mr. Winston Yau-Lai Lo, Executive Chairman of Vitasoy International Holdings Limited.