Vitasoy sees up to 107% profit drop over reduced demand

It estimated its performance to range between $50m loss and $60m profit.

Vitasoy International Holdings estimated its performance in the six months ending in September to drop between 91% and 107% from a year ago.

The company said it expects the group’s financial performance to range between a loss of $50m and a profit of $60m. This is a decline from the $671m profit recorded in the same period in 2020.

“This substantial decrease is mainly attributable to a significant reduction in market demand during the second quarter of the financial year 2021/22,” the group said in its profit warning.

The group also noted that the July 2 incident led to the month-long removal of its products on several shelves in Mainland China.

This stemmed from an unauthorised internal memo that contained “inappropriate contents” against the group that was widely circulated in social media in Mainland China.

“Although our products are gradually returning to shelves in selected outlets, the loss of sales during the summer peak season is expected to have a material impact on the Group’s revenue and profitability for the six months ending 30 September 2021,” the group noted.