NVC International (2222) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 was US$107.2 million, down 9.6% year-over-year, mainly due to weaker demand and increased competition in both domestic and international markets.

• Net profit for the period rose to US$15.3 million, up 72.5% from US$8.9 million in the prior year, driven by improved gross margins and foreign exchange gains.

• Gross profit increased 9.3% to US$40.6 million, with margin up to 37.9% from 31.3% year-over-year, reflecting cost reductions, lower raw material prices, and improved self-production processes.

• No interim dividend was declared for H1 2025.

• The Group maintained strong liquidity, with net current assets of US$180.0 million and a current ratio of 3.19 as of 30 June 2025.

Financial highlights

• Revenue declined 9.6% year-over-year to US$107.2 million; international sales fell 9.4% to US$102.8 million, and PRC sales dropped 14.1% to US$4.3 million.

• Gross profit increased 9.3% to US$40.6 million, with margin up to 37.9%.

• Profit before tax was US$16.7 million, up from US$10.3 million a year earlier.

• Earnings per share rose to US$0.03 from US$0.0151 year-over-year.

• Administrative expenses increased 7.5% to US$16.0 million, while selling and distribution costs fell 3.4% to US$15.2 million.

Outlook and guidance

• The Group will focus on expanding its international lighting business, strengthening R&D, and launching new products in H2 2025.

• Management expects improved sales in the UK, Nordics, and North America in the second half of 2025, supported by new products and expanded sales channels.

• Plans include optimizing management structure, integrating overseas business, and expanding in the Middle East and Southeast Asia.

• Continued emphasis on cost control, digitalization, and ERP upgrades to enhance efficiency.

• Anticipates persistent market challenges in Vietnam, Pakistan, and Sri Lanka due to project delays and economic headwinds.