Beauty Farm Medical and Health Industry (2373) H2 2024 earnings summary

Executive summary

• FY2024 revenue reached RMB2,572.2m, up 19.9% YoY; net profit rose 9.7% to RMB252.5m, with record revenue and profit.

• Active direct-store members increased 46.3% to 137,027 and visits rose 20.4% to 1.52m; the network reached 554 stores after 154 net additions.

• Naturade broadened the service model to dual beauty and dual wellness, with medical offerings and cross-selling supporting growth.

Financial highlights

• Revenue was RMB2,572.2m, up 19.9% YoY; gross profit rose 21.8% to RMB1,190.0m.

• Net profit increased 9.7% to RMB252.5m; adjusted net profit was RMB252.1m versus RMB241.0m, while reported net profit was RMB252.5m versus RMB230.1m.

• Operating cash flow rose 27.4% to RMB796.6m; cash and cash-like items totaled RMB1,831m at year-end, up RMB257m YoY.

• Operating profit was RMB321.8m versus RMB291.3m; profit before tax was RMB317.9m versus RMB288.3m.

Outlook and guidance

• Three-year priorities include scaling and improving profitability through organic growth, external expansion, acquisition integration and operating-efficiency gains.

• 2025 initiatives include a Craftsmanship Service brand upgrade, AI-powered skin diagnostics across beauty and wellness stores, and expanded Naturade offerings.

• Plans include AI applications in beauty and health, horizontal and vertical M&A, and pursuing Hong Kong Stock Connect eligibility.

• Cross-selling aesthetic and subhealth medical services to existing beauty and wellness members aims to increase service penetration; a Women’s Special Care Center ovarian anti-aging upgrade is planned for 2025.