Carote (2549) H2 2024 earnings summary

Executive summary

• Achieved strong revenue growth of 31.0% year-over-year to RMB2,073.3 million for 2024, driven by branded business expansion and product diversification.

• Net profit increased by 50.5% to RMB356.0 million, with adjusted net profit up 57.9% to RMB383.0 million, reflecting improved margins and operational efficiency.

• Branded business accounted for 89.7% of total revenue, with significant growth in the US market (up 69.0% year-over-year).

• Gross profit margin rose to 40.3% from 35.7% year-over-year, supported by procurement efficiencies and higher sales prices.

• Listed on the Hong Kong Stock Exchange in October 2024, raising HK$843.0 million in net proceeds.

Financial highlights

• Revenue: RMB2,073.3 million (2024), up 31.0% from RMB1,583.1 million (2023).

• Gross profit: RMB835.4 million, up 47.8% year-over-year; gross margin at 40.3%.

• Net profit: RMB356.0 million, up 50.5% year-over-year; net margin at 17.2%.

• Adjusted net profit: RMB383.0 million, up 57.9% year-over-year; adjusted net margin at 18.5%.

• Earnings per share: RMB0.81 (basic and diluted), up from RMB0.59.

Outlook and guidance

• 2025 expected to be challenging due to global economic uncertainties, trade protectionism, and US-China trade tensions.

• Strategic focus on product development, sales channel and geographic expansion, brand enhancement, and organizational optimization.

• Confident in leveraging innovation and supply chain strengths to achieve sustainable growth.