IFBH (6603) H2 2025 earnings summary

Executive summary

• Revenue grew 11.9% year-over-year to US$176.4 million, led by strong performance of the flagship if brand, which grew 27% and reinforced market leadership in coconut water in China.

• Net profit declined 31.7% to US$22.8 million, mainly due to one-off listing-related professional fees and operational issues with the Innococo brand.

• Adjusted profit (excluding listing fees) was US$26.9 million, down 22.0% year-over-year.

• International business (excluding China and Hong Kong) grew over 70%, with notable gains in Australia, Philippines, and Laos.

• The company successfully listed on the Hong Kong Stock Exchange in June 2025, raising US$147.6 million in new equity.

Financial highlights

• Gross profit increased slightly to US$58.0 million (+0.3%), but gross margin fell to 32.9% from 36.7% due to currency headwinds and sales mix shift.

• Selling and distribution expenses rose 64.6% to US$8.9 million; marketing expenses increased 77.0% to US$13.0 million, reflecting brand investments.

• Administrative expenses doubled to US$10.0 million, mainly from listing-related professional fees.

• Cash at banks surged to US$163.9 million (+198.8%), driven by IPO proceeds.

• Net cash from operating activities was US$12.3 million, with US$98.9 million generated from financing activities.

• No bank borrowings; gearing ratio is zero.

Outlook and guidance

• China coconut water market projected to grow at 13–19% CAGR through 2030, outpacing the broader beverage sector.

• Strategic focus on expanding local operations, manufacturing, and marketing in China, including a new Shanghai subsidiary and planned if Café concept store.

• International expansion targets Australia and Indonesia, with international revenue expected to exceed 10% of group total in three years.

• Supply chain capacity to be expanded via new production lines at co-packers in anticipation of demand growth.