Softcare (2698) H1 2026 earnings summary

Executive summary

• H1 2026 revenue rose 30.7% YoY to US$332.7m; gross profit increased 36.6% to US$119.1m, and gross margin improved to 35.8% from 34.2%.

• Profit for the period was US$75.8m and adjusted net profit was US$78.6m; an interim dividend of 8.00 US cents per share was declared, totaling ~US$49.7m.

Financial highlights

• Revenue was US$332.7m vs US$254.6m in H1 2025; gross profit was US$119.1m vs US$87.2m, while cost of sales rose 27.5% to US$213.6m.

• Profit for the period was US$75.8m vs US$51.9m; basic and diluted EPS were both 12.2 US cents, vs 10.2 and 10.1 cents, respectively.

• Adjusted net profit, excluding listing expenses, FX movements, share-based payments and related tax effects, was US$78.6m vs US$51.3m; adjusted margin was 23.6% vs 20.2%.

• Other income rose to US$6.8m from US$0.2m, primarily from bank interest on listing proceeds; net other gains increased to US$1.6m from US$0.6m.

• Selling and distribution expenses increased 47.2% to US$13.1m; administrative expenses rose 13.5% to US$20.2m. Net FX loss was US$2.7m vs a US$3.9m gain, and listing expenses were nil vs US$2.6m.

Outlook and guidance

• 2H 2026 business scale is expected to continue rising steadily, supported by emerging-market demographics and sustained demand for essential hygiene products.

• Priorities include expanding capacity and market reach in neighboring core-market countries and Latin America, broadening the three-category product range, and deepening distribution and omnichannel brand reach.

• Flexible marketing, pricing and inventory measures, alongside prudent cash-flow and working-capital management, are planned to address external volatility.