China Resources Beverage (Holdings) Company (2460) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 was RMB6,205.6 million, down 18.5% year-over-year, mainly due to a decline in packaged water sales and channel adjustments.

• Net profit for the period was RMB823.0 million, a decrease of 28.7% compared to the same period last year, with net profit margin dropping from 15.2% to 13.3%.

• Gross margin was 46.7%, down 2.6 percentage points year-over-year, impacted by lower revenue and product mix changes.

• The company declared an interim dividend of RMB0.118 per share for the period, totaling RMB282.99 million.

Financial highlights

• Cost of sales decreased by 14.3% to RMB3,309.5 million, reflecting lower packaged water sales and raw material prices.

• Other income rose 92.8% to RMB217.3 million, driven by higher interest income and government grants.

• Distribution and selling expenses fell 9.9% to RMB1,884.3 million, mainly due to reduced transport costs.

• R&D costs decreased to RMB14.8 million from RMB17.9 million year-over-year.

• Capital expenditures for the period were RMB620.6 million, primarily for property, plant, and equipment.

Outlook and guidance

• The company will continue to focus on a brand-driven strategy, expanding healthy product offerings and leveraging sports marketing to boost brand recognition.

• Plans include further optimization of production capacity, deepening end-point sales coverage, and enhancing production autonomy and efficiency.

• Continued investment in R&D and digitalization to meet evolving consumer demands.