Health food company Grape King Bio Ltd’s (葡萄王) board of directors yesterday approved a proposal to distribute a cash dividend of NT$6.9 per common share, the highest in the company’s history.
The proposal, if approved by shareholders on May 31, would represent a dividend yield of 3.88 percent, based on yesterday’s closing share price of NT$178 in Taipei trading.
It would have a payout ratio of 70.12 percent, compared with earnings per share of NT$9.84 last year, the highest the supplier of probiotics and mycelium-based health foods has posted in the past five years.
Photo courtesy of Grape King Bio Ltd
Grape King, which produces the Come Best tonic drink and Granoderma King nutritional supplements, said direct-sales subsidiary Pro-Partner Inc (葡眾), and manufacturing and sales channel support from its Taiwan and Shanghai operations were its major growth engines.
While Shanghai Grape King Enterprise Co’s (上海葡萄王) performance last year was affected by China’s COVID-19 pandemic-related restrictions, a firm contribution from operations in Taiwan boosted the company’s net profit last year to NT$2.17 billion (US$71.14 million), up 11.4 percent from 2021, while consolidated revenue increased 6.05 percent to NT$10.39 billion, the highest ever.
Gross margin was 81.61 percent last year, up from 80.17 percent in 2021, while operating margin rose 0.96 percentage points to 24.55 percent, the company said in a filing to the Taiwan Stock Exchange.
The firm said in a statement that additional sales channels and new products helped lift its own-brand business last year, while its contract manufacturing business also benefited from increasing global demand for immunity-boosting products, such as probiotic supplements, during the pandemic.
Pro-Partner last year maintained its growth momentum thanks to new product launches and membership expansion, with sales rising 9.08 percent year-on-year to NT$8.73 billion last year, it added.
The company said it holds a positive outlook for its operations in China this quarter, as Shanghai Grape King has resumed normal operations after the country scrapped its strict COVID-19 measures late last year.
“In the post-pandemic era, the public’s health awareness is on the rise and the demand for health food has the opportunity to increase significantly,” the company said in the statement.
However, consolidated revenue last month fell 39.98 percent month-on-month and declined 4.96 percent year-on-year to NT$666.33 million due to the Lunar New Year holiday, it said.
The company expects revenue to rebound this month and is confident that it can maintain robust operations this year, as it is planning to continue its diversification strategy, enhance product development and meet the needs of brand customers, it added.
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