Uni-President China (220) H1 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 reached RMB 15,449 million, up 6.0% year-over-year, with net profit rising 10.2% to RMB 966 million and gross margin improving by 2.7 percentage points to 33.8%.

• Operating profit increased 12.9% to RMB 1,233 million, and EPS rose to RMB 0.2236 per share.

• Growth was driven by strong beverage and tea sales, lower raw material costs, and product mix optimization.

• The company focused on product innovation, brand building, and expanding market channels across food and beverage segments.

Financial highlights

• Gross profit reached RMB 5,228 million, up 15.3% year-over-year, with gross margin at 33.8%.

• Cash and cash equivalents stood at RMB 9,175 million as of June 30, 2024, with cash at bank and on hand at RMB 7,550.7 million.

• Net cash from operating activities was RMB 1,487 million; net cash outflow from investing activities was RMB 974.2 million.

• Capital expenditure for the period was RMB 395.8 million, down from RMB 697.1 million in first half 2023.

• No interim dividend declared for the period; cash dividends paid totaled RMB 1,872 million in 1H24.

Outlook and guidance

• Management expects continued opportunities from China's economic resilience and government policies promoting domestic demand and consumption upgrades.

• Focus remains on technological innovation, product upgrades, and delivering high-quality, value-for-money products.

• Ongoing commitment to sustainable development and social responsibility.

• Forward-looking statements caution about risks and uncertainties affecting future performance.