In the first half of the year, Vinda Group’s revenue increased by 19.5% year-on-year to HK$5,666 million ($731 million). Organic growth in revenue was 14.5%. 87% of Vinda Group’s revenue was generated by the Tissue business and 13% by the Personal Care business, as the company said in the press release received by Lesprom Network.
Gross profit increased by 18.4% year-on-year to HK$1,772 million ($228 million). The Group continued to optimize the tissue product mix, improve production efficiency and benefit from a lower wood pulp cost.
The gross profit margin in the 2Q therefore increased quarter on quarter from 30.6% to 31.9%. Despite of this, the Group’s gross profit margin in the first half of the year dropped slightly versus the first half of 2015 by 0.3 percentage points to 31.3%, partly because of a slight dilution effect from the newly acquired businesses in Asia.
1H 2016 EBITDA grew by 18% and EBITDA margin was steady at 14.7% (vs 14.8% in 2015), reflecting a stable cash generation from the business.
Net profit decreased by 2.9% year-on-year to HK$321 million ($41.4 million) due to increased financing and taxation cost (including the HK$18 million ($2.3 million) fair value downward adjustment on the convertible note). Basic earnings per share amounted to 30.6 HK cents.
Vinda is a major hygiene company in Asia.
