Beauty Farm Medical and Health Industry (2373) H2 2023 earnings summary

Executive summary

• FY2023 revenue reached RMB2.145bn, up 31.2% YoY; net profit rose 108.2% to RMB230.1m, both record highs.

• Adjusted net profit, excluding share-based compensation and listing expenses, rose 53.2% to RMB241.0m.

Financial highlights

• Gross profit increased 36.1% to RMB977.1m; gross margin rose to 45.6% from 43.9%.

• Operating profit was RMB291.3m versus RMB152.1m; profit before tax was RMB288.3m versus RMB130.5m.

• Basic and diluted EPS were both RMB0.94, versus RMB0.52 in 2022.

Outlook and guidance

• Strategy targets growth through store expansion, member growth, cross-selling aesthetic medical and subhealth services, and M&A.

• Plans include continued digital investment, stronger operating efficiency, product and service R&D, and expansion into wellness opportunities.

• Management expects beauty and wellness demand to keep growing, while citing macroeconomic uncertainty and a fragmented market.