Vitasoy Report

MANAGEMENT DISCUSSION AND ANALYSIS

03

INTERIM REPORT 2005

BUSINESS HIGHLIGHTS

• The Group’s turnover for the first six months of fiscal 2005/2006 was HK$1,262 million, an increase of 2.3% over the same period last year (2004/2005 interim: HK$1,234 million). Profit attributable to shareholders for the period was HK$91 million, up 35.8% (2004/ 2005 interim: HK$67 million). 67,000,000 • In view of the Group’s strong balance sheet, the Board of Directors has declared an interim dividend of HK2.8 cents per share (2004/ 2005 interim: HK2.8 cents per share), payable on 12th January, 2006. • The Group sustained its growth momentum in the interim period. The operating results of all its operations worldwide improved year-onyear. Hong Kong posted a rise in profit despite a slight drop in sales in the domestic market. The Mainland China Operation continued to register growth in revenue and profitability. Both the North American and Australian Operations achieved significant improvement. The performance of the Australian Operation was particularly outstanding in terms of both sales and profit. In North America, the Group’s operating loss narrowed substantially from the same period last year, paving the way for further improvement. • The Group continued to supply its various markets worldwide with nutritious and tasty products noted for their high quality and value through product development and innovation. The growth in the interim period was attributable to the successful launches of new products as well as products with new flavours and packaging in different markets. Our product development and innovation efforts were supported by aggressive and effective advertising and promotion, which also helped further strengthen our brands and expand our market share at the same time. We also stepped up our effort in expanding our new distribution network and exploring new markets. Internally, we continued to enhance our operational efficiency and productivity. Our...