Hong Kong-based plant milk brand Vitasoy has published positive results for the financial year 2022/2023, after turning around previous losses.
The company recorded a profit from operations of HK$104 million for the year ending in March, compared to a loss of HK$213 million in FY 2021/2022. This was achieved in spite of the increased cost of energy and raw materials, mainly due to cost rationalizations in mainland China and an increase in government subsidies in Hong Kong.
Results by region
Vitasoy continues to lead the Chinese soymilk market, and registered an operating profit of RMB40 million this year versus a loss of RMB280 million in FY2021/2022. However, revenue dropped slightly by 2%.
The company’s Australia and New Zealand operation saw a 3% revenue increase, with new products such as Café Latte Oat Milk and Greek Style Yoghurt well-received by consumers. Profit from operations dropped by 89% as a result of higher overheads, but Vitasoy predicts a positive outlook in the region due to the fast-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 Singaporean business faced challenges due to the commoditization of the local tofu category, with consumers opting for cheaper options and falling export sales to Europe.
Sustainable growth
Founded in 1940, Vitasoy claims to have been the world’s first commercial soy milk producer. The company has since branched out to offer more varieties of plant milks such as oat and almond, along with other dairy alternatives like yogurt.
“We improved the Group’s performance with profitability for FY2022/23. We will remain focused on executing with discipline towards the goal of delivering sustainable growth and profitability,” said Mr. Winston Yau-lai Lo, Executive Chairman of Vitasoy International Holdings Limited.
