STOCKS | Vitasoy CFO Flags Raw Material Cost Pressure Amid Middle East Tensions

Vitasoy International (0345) said Middle East tensions are affecting global supply chains and adding cost pressure, according to Ming Pao. CFO Wu Yan-hung said the company locked in raw material prices through contracts in the first half of this year, and has observed a significant rise in raw material prices linked to oil prices since the outbreak of the conflict, ranging from mid-single digits to double digits. She said mitigation measures include communicating with suppliers and signing longer-term contracts to lock in prices. Wu also noted higher costs for beverage bottles and caps, and said the company is considering switching to lighter bottle caps.