Good afternoon, ladies and gentlemen. Thank you for joining us today for Vitasoy Interim Results briefing for Fiscal Year 2023 and 2024. Before we start, I would like to introduce you the senior management of Vitasoy Group. Sitting in the middle of the head table, we have Mr. Winston Lo, Executive Chairman of Vitasoy Group. On the left-hand side of Mr. Lo, we have Ms. May Lo, Deputy Chairman. On Mr. Lo's right-hand side, we have Mr. Roberto Guidetti, our Group Chief Executive Officer. Last but not least, we have Ms. Ian Ng, Group Chief Financial Officer. In the following presentation, we'll first have Ian to provide us with a review on the company's financial performance, followed by Roberto's presentations on the business review in different markets and outlook. We'll then have a Q&A session. So now let's invite Ian to speak to us. Ian, please.
Thank you, Angela. Good afternoon, ladies and gentlemen. Welcome to our interim results announcement briefing. Before we start our presentation, I would like to draw your attention to this disclaimer regarding the forward-looking statement in this presentation. For the six months ended 30th September 2023, in Hong Kong dollar terms, the Group's revenue decreased 7% to HKD 3.391 billion. On a constant currency basis, revenue dropped 3% from a relatively high base last year due to anticipation of price increase before October 2022 in Mainland China. Gross profit margin increased to 50.5% in the interim period, mainly attributable to price increases and lower trade promotional expenses, partially offset by sales mix impact and higher commodity costs.
Profits from operations dropped 19% as a result of cessation of COVID-related subsidies in the current financial period, while renminbi and Australian dollars depreciated against the Hong Kong dollar. On a like-for-like basis, excluding HKD 59 million COVID-related government subsidies received in the last interim period and currency impact, profits from operations grew 15%, primarily driven by our Mainland China and Hong Kong operation, but partially offset by short-term challenges in Australia. Profits to shareholders grew 15%, despite the absence of COVID subsidies this year and aforementioned currency depreciation. Earnings per share was HKD 0.152, increased by 14% comparing to the last interim period. Next, let's move on to CapEx. CapEx spending for the period was HKD 35 million. We have completed the yogurt line in Australia and other production line upgrades last year.
Capital spending has now normalized, and we have enough production capacity to support the growth for the next few years. The financial position of the group remains strong. As of 30th September 2023, our cash and bank deposits was HKD 710 million. Bank borrowing was HKD 237 million. Gearing ratio for the group improved to 18%, primarily due to decrease in bank borrowings. The group's return on capital employed, ROCE, was 13%. As a result of the group's improved financial performance, we recommend an interim dividend of HKD 0.014 per ordinary share. This ends the first section of the presentation. Now, I would like to invite our Group CEO, Mr. Roberto Guidetti, to share with you the by market review and talk about the outlook of the group's business. Thank you.
Thank you, Ian. Let me now share with you the review of our business overall and by geography. Net of currency impact and the COVID subsidies that we received in the previous interim period, our profit from operations grew 15%. This is the result of our deliberate focus to accelerate the achievement of our target structural profitability. Revenue slightly dropped -3% from a relatively high base in the second quarter of last year due to our October 2022 price increase in Mainland China. China has been improving its results. Mainland China was the main profit driver, with a 47% increase in operating profit in renminbi, excluding COVID-related subsidies. This is equal to a strong 10% operating margin. This was obtained via restructuring organizational design, driving spending efficiencies, and also aggressive input costs containment.
Hong Kong operation contributed via solid revenue growth and improved profitability, excluding COVID-related government subsidies. In Australia, we have transitioned to full ownership with temporary OpEx increases, aggravated by some short-term manufacturing and logistics issues, and some aggressive competitive activity on the coffee channel. Our Asian markets are growing the top line, Singapore gaining momentum from tofu exports, and our joint venture in the Philippines continuing its gradual scale-up and category growth trajectory via driving awareness, trial, and portfolio innovation. In the second half of the financial year, we will aim to achieve two objectives. First, to increase structural profitability on total fiscal year basis, and second, to restore revenue growth in the second half of the fiscal year.
Mainland China will increase focus on core products and regions where we see higher growth potential and profitability, while continuing our most disciplined effort to synchronize our cost base to the gradual scale-up of the business. At the same time, we will continue to enhance availability through disciplined execution. Hong Kong operation will aim to grow top line from continuous innovation and strong core products. In Australia, our goal is to return to profitability while normalizing manufacturing, logistics, and make progress towards achieving our target cost structure. We will sustain top-line growth and also improve the bottom line for our ASEAN markets via improvement in the tofu business in Singapore and sustaining our currently strong momentum in the Philippines.
Overall, in the medium to long term, we stay confident in the potential of sustainable plant-based food and beverages and our ability to drive the execution and expansion of our core products, while selectively innovating on new platforms to accelerate growth. In doing so, we will continue to work to accelerate structural target profitability across all units, while gradually continuing to scale up the enterprise. Now, if we're looking at operating profit, in the first half, we were able to register substantial operating profit growth for total group and total China versus last year, net of currency and subsidies, via very solid performance in both Mainland China and Hong Kong operation, despite some underperformance in Australia and in Singapore. On the revenue side, net of currency impact, China total slightly dropped by 3%.
Mainland China remains the biggest market by revenue, albeit its percentage of total group is reduced to 58%. Hong Kong operational revenues increased to 33% of the group, while Australia and New Zealand slightly decreased to 7%. Let's now move to our review by market, starting with our biggest market, China. China total revenue was HKD 3.1 billion, down -3% versus last year, net of currency impact. Excluding government subsidy last year and currency impact, operating profit grew substantially by 37% to HKD 301 million. Our Mainland China business grew the operating profit by 47% in local currency terms, net of COVID government subsidies, equal to operating profit margin of 10%, contributed by organizational redesign, more efficient spending, and containment of operating expenses.
Revenue on local currency slightly dropped 6% as a result of a high base in the second quarter of the last financial year before the October 2022 price increase. The core products under both brands, Vitasoy and VITA, performed solidly. We have also received encouraging feedback on our innovation products. For example, on Vitasoy, we have collaborated with Sam's Club or Walmart for promoting exclusive premium Vitasoy, which is being sampled here today. For VITA Tea, our new reformulated no-sugar tea, saw substantial growth from a small base as shoppers became more health-oriented. During the year, we have launched a new campaign on Vitasoy Classic and renewed the VITA Tea communication, raising the brand's visibility and presence. Here, I would like to share with you our TV commercials on Vitasoy. So these two commercials are airing both in Mainland China and in Hong Kong, right? This year.
Going forward, Mainland China will remain as our most important driver, and we're confident in its long-term market potential for both plant milk and ready-to-drink tea. We will continue to drive profitability improvement. Our focus will be on core products and core geographies for higher growth potential and sales profitability. We will also drive selective innovation in our core markets, where we can count on higher awareness, brand equity, lower cost to serve, and commercial infrastructure. The Hong Kong operation delivered a steady growth by 4% as a result of core business stability and strong performing product innovation. Excluding the government subsidy received in the previous interim period, we were able to grow the profit from operations by 22% because of sales volume increase and efficient cost control.
According to Nielsen, we remain the leader for both the ready-to-drink soy milk and ready-to-drink tea under both brands, Vitasoy and VITA. Sustainable innovation products from both brands, Vitasoy and VITA, helped to provide additional growth. Our premium Vitasoy Calci -Plus Protein Plus variant, VITA Oat, VITA Sparkling Tea, and Fresh Tea continued to grow and gain momentum. Our Vitaland school business also has now normalized along the increasing number of school days, providing us a unique platform to continue to educate our young consumers. Let's now move to our overseas businesses, starting from Australia and New Zealand. The Australia-New Zealand business registered revenue drop of 10% in local currency amid temporary manufacturing and logistic issues, resulting in out-of-stock situation, despite strong market demand for plant-based products. In our terms, the revenue dropped more, 16%, due to the depreciation of the Australian dollar.
We incurred operating loss of HKD 33 million during the interim period, mainly due to high raw material prices, logistics, overhead costs, as well as transition costs for post-acquisition integration, and also price competitiveness in the coffee channel. Our Soy and Oat platforms retained their leadership position in the local market categories, while our new Yogurt platform continued to provide incremental growth. We are confident in the long-term potential of our plant-based products in Australia and New Zealand. This is based on continuing strong demand in these markets, post full ownership. In the second half of the financial year, we will work to normalize our supply chain and restore both revenue growth and the target cost structure in Australia. Let me now close the segmental review by covering our Southeast Asian markets, starting from Singapore.
In Singapore, the revenue increased by 1% in local currency, while 4% in Hong Kong dollar terms, as a result of a 19% improvement in export, export business, partially offset by weaker beverage sales and local tofu category in the context of higher price pressure. The business registered an operating loss, albeit a narrower one compared with the last interim period, due to high raw material prices and intensified market competition. We will continue to optimize the local tofu business and implement a cost rationalization program to keep improving the bottom line. Now let's close the by-market review via a brief update of our business in the Philippines. Our joint venture in the Philippines with the Universal Robina Corporation, URC, continued driving gradual scale in both the take-home and the on-the-go channels, sustaining market share growth.
We're also leading category growth in the new promising and on-trend segments with the launch of Milky Almond and Milky Oat variants, supported by a new awareness and trial-building campaign. We will focus on continuing our awareness and trial to grow sales and market share, leveraging the current strong momentum and our complete portfolio, addressing shopper preferences across Soy, Oat, Almond, and other consumption occasions. So in summary, our goal is to advance structural target profitability, okay? So accelerate the achievement of structural target profitability. To achieve that goal, we will continue to improve sales execution to increase the revenue growth, while at the same time, driving cost containment and efficiencies through other operations. Mainland China will increase focus on core products and core regions where we see high growth potential. Hong Kong operation will aim to grow top line from continuous innovation and strong core products.
Australia will continue to normalize the supply chain and the cost base, so to restore consistent top and bottom line growth post full ownership transition. We will work to sustain top-line growth and also improve the bottom line for our ASEAN markets. In the medium to long term, we stay confident in the potential of sustainable plant-based food and beverages, and also our ability to drive the execution and expansion of our core products, while selectively innovating on new platforms to accelerate growth. That's all of our sharing, and we're now open for questions. Thank you.