Eternal Beauty Holdings (6883) H1 25/26 earnings summary

Executive summary

• H1 FY25/26 revenue fell 3.4% YoY to RMB1,028.0m, while operating profit rose 21.2% to RMB164.4m and profit increased 15.3% to RMB133.2m.

• Cost optimization, improved efficiency and resource shifts toward higher-growth businesses supported profit growth amid competitive pricing pressure.

Financial highlights

• Gross profit was RMB513.6m, down 3.5% YoY; basic EPS was RMB11.3 cents, down 1.7% from RMB11.5 cents.

• The board declared interim and special dividends of HK4.6 cents and HK3.4 cents per share, respectively, versus nil in the prior-year period.

Outlook and guidance

• Dual-track strategy: broaden premium home-fragrance and niche-perfume offerings, expand international brands and develop proprietary brands, including Santa Monica; external acquisitions or investments are under consideration.

• Plans include expanding PERFUME BOX and other self-operated stores/counters, enhancing in-store experiences, and upgrading CRM, mid-office, finance and operating systems.

• Use-of-proceeds timelines target 31 March 2028; plans may change with market conditions or unforeseen circumstances.