Hong Kong beverage giant Vitasoy’s revenue dips 6% as mainland China demand slows

Hong Kong beverage giant Vitasoy International reported a 6 per cent drop in revenue for the six months ended September, citing weaker demand and intensifying competition in mainland China.\nThe maker of tea drinks and soy milk posted interim revenue of HK$3.23 billion (US$415 million) and a net profit of HK$172 million, a 1 per cent year-on-year increase. The figures contrasted with the company’s performance for the full financial year ended March, when revenue rose 1 per cent and net profit surged 102 per cent.\n“It is difficult to say,” said CEO Roberto Guidetti, when asked about expectations for demand on the mainland market.\nVitasoy has been offering 10 to 15 per cent discounts for its tea products since November 2024 and has increased promotional expenses for its soy milk products.\nGuidetti said he expected long-term opportunities in mainland China, noting that its per capita beverage consumption was lower than some developed markets.\n\nFor the April-to-September period, mainland revenue fell 9 per cent year on year due to slower sales in general trade channels. Sales in Hong Kong and Macau declined 4 per cent from a year earlier, which Vitasoy primarily attributed to the sluggish economic recovery in Macau.\nVitasoy said changing US tariffs had hurt its business in North America, though the market only contributed a low single-digit share in total revenue. The company said it would continue to monitor the impact of the US-China trade tensions.\nWhen asked whether the share buy-back this year was linked to the rising stake of the family of Singaporean billionaire Philip Ng Chee-tat, executive chairman Winston Lo Yau-lai said the repurchase reflected the management’s long-term confidence in the company’s performance, rather than short-term considerations.\nThrough vehicles such as beverage brand Yeo Hiap Seng, the family behind property giant Sino Group started to buy shares in Vitasoy in early 2024, describing the move as a long-term investment.\nThe latest disclosed purchase by the Ng family was a HK$5.1 million transaction on September 5 that raised its stake in Vitasoy to 16.03 per cent. The family’s holding is now close to Lo’s 16.37 per cent, though it is still far below the Lo family’s 26.3 per cent in total.\nSince the first buy-back in March, Vitasoy had repurchased over 21 million shares for HK$199 million as of September.\nShares of Vitasoy slid 1.47 per cent to close at HK$6.68 apiece on Tuesday. Vitasoy’s interim dividend stayed unchanged at 4 HK cents per share.\n