China Foods (506) H2 2025 earnings summary

Executive summary

• Achieved record profit in FY2025, with revenue of RMB22,070 million, up 2.7% year-over-year, and sales volume rising 2.8%.

• Expanded market coverage to 19 provinces and over 400 cities, with a portfolio of 25 brands across 10 product categories.

• Gross profit margin declined by 0.7 ppt to 37.1% due to higher water category sales and elevated aluminium costs.

• Adjusted EBIT and EBITDA increased by 6.1% and 5.5% year-over-year, respectively.

• Maintained market leadership in sparkling drinks, with strong growth in functional drinks and smart retail business.

Financial highlights

• Revenue reached RMB22,070 million (+2.7% YoY); net profit grew 6% year-over-year to RMB1.98B, setting a new record.

• Adjusted EBIT: RMB1,979 million (+6.1% YoY); Adjusted EBITDA: RMB2,872 million (+5.5% YoY).

• Gross profit: RMB8,183 million; gross profit margin: 37.1% (down 0.7 ppt YoY).

• Net profit attributable to owners: RMB862 million; EPS: RMB0.3082.

• No interest-bearing bank borrowings; gearing ratio remains nil.

Outlook and guidance

• Emphasizes diversified growth in core beverage and health food segments, consolidating core business and expanding premium and health-focused products.

• Plans to leverage product, channel, and model innovation, supported by digital intelligence and AI technology.

• Anticipates continued macroeconomic uncertainty but expects policy support and health trends to drive sector growth.